Euro Hostels aims for gap in UK market

A Scottish company is planning to launch a chain of upmarket hostels throughout the UK to fill the gap between traditional youth hostels and budget hotels.

The first Euro Hostel is scheduled to open in central Glasgow in October, with others planned for Edinburgh, London, York and Manchester.

All Euro Hostel rooms will have en suite facilities, with most accommodating two to four people. Prices are to start at £13.75 per person, including breakfast.

Although competition in the sector is fierce - almost 100 budget hotels opened last year, and numbers are predicted to double within three years - Euro Hostels non-executive director Paul Murray-Smith believes the company has identified a potentially huge market. It has already invested £15m in the project.

By making its rooms en suite and providing 24-hour staffing, Euro Hostels hopes to offer a higher level of service than conventional hostel accommodation.

Charging per person rather than per room means groups could find a Euro Hostel more expensive than a Travel Inn or Travelodge.

But Murray-Smith said this wouldn't be the case: Prices would be set to be higher than hostels and lower than lodge accommodation. Rates might also differ between branches, particularly in more expensive cities such as London.

Glasgow's Euro Hostel, which will be on the corner of Clyde Street and Jamaica Street, will have 386 beds.

Source: Caterer & Hotelkeeper, 20-26 July 2000