Keith Knowles, the chief executive of Beds & Bars has told M&C Report the company is aiming to open a 1,000-bed hostel in the Paddington or Kings Cross area as the next stage of development after it adds 250 rooms into its existing estate.

Knowles also told M&C Report the company is actively seeking franchise opportunities and managed contracts.

The company has just secured a new £7m facility with HSBC to fund the latest stage of its development, which will see its Village site in Southwark double in size to 400. As part of that work, which will see several floors added, all the bars will be refurbished with the dug-out bar becoming completely self-contained and a new terrace bar being added.

At the Hammersmith site the company is adding another 50 beds to the current 90. At the Flying Horse, eight boutique beds will be added.

Knowles said the hostels were running at an average occupancy rate of 95% and it was clear there was the demand to fill the extra beds.

He said: “We are really excited about being able to expand our accommodation and the impact that will have on our bars. We are already on a great trajectory – over the past two years my managing director Murray Roberts, who has been running the business while I was caring for my wife, has added £10m of turnover.”

He added: “Even with this we still won’t have as many beds in London as we have in Paris, where we have over 1,000. What we would really like is to have a large site in Paddington or King’s Cross with something like 1,000 beds and we are talking to landlords at the moment to see if we can make that happen.

“We are also going to be looking at franchising. We are actively pursuing that. We are going to do St Christopher’s Lite and then a full franchise. We are also going to do managed contracts where we will manage people’s buildings for them.”

Reflecting on his role within the company after returning fulltime in April, Knowles said: “I see the role of a CEO as keeping the company honest and being an ambassador. Murray is doing a fantastic job of running the company so I can focus on new opportunities and finding the money for them.”