Thirty-two properties are to be sold off by the Youth Hostel Association (YHA) in a bid to slash its £34m debt.
In a statement the YHA revealed it would dispose of 32 of its 227 properties across England and Wales.
It follows a 12-month review by the charity's Board of Trustees.
Profits from the disposals will be offset against the YHA's debt, which accrues around £1m per year in interest.
The charity has blamed a change in travelling trends for its problems.
Chief executive Roger Clarke said: "Changing tastes and markets have left us with too many under-used properties in less popular locations."
Seventy jobs will also be lost as a result of the cuts.
The YHA said part of the money raised from the sale would be used to fund an £18m investment programme in its existing hostel network to refocus its efforts on attracting young people.
Chris Boulton, YHA chairman, said: "We want to provide low-cost accommodation so that young people can discover England and Wales, and we can only do this by providing great hostels in great locations."
Debt-ridden YHA set to sell hostels >>
By Jen Crothers
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