Hostel chain Hoax launches in Liverpool
Starboard Hotels and Bridgepoint Ventures have launched a new hostel chain called Hoax.
The business will launch with a 282-bed hostel in Liverpool, situated at the junction of Mathew Street and Stanley Street and opposite the world famous Cavern Club – which used to regularly play host to the Beatles.
The five-star hostel is due to open in July and will have a trendy Brooklyn-style bar and restaurant on the ground floor.
Starboard bought the 23,000 sq ft property – originally built as the Kansas Buildings tea warehouse and later used as Wade Smith department store before becoming vacant – in joint venture with Union Hanover Securities from Quintain last year.
The hostel chain business is the result of a joint venture between Starboard Hotels and Union Hanover, funded by Bridgepoint Ventures and IPIN Global.
Each property will be “individually designed to have its own personality, with a common theme of playful and cheeky design through the portfolio”, Starboard said. Another common element will be that each hostel will be built in a converted property whose original use has become redundant.
Paul Callingham, managing director of Starboard Hotels, said: “Bridgepoint Ventures is an ideal partner for Starboard. [Its chief executive] Eric Jafari, with his marketing background, is passionate about this sector and brings flair and creativity to the project.
“Bridgepoint is a major international real estate investment group, with a focus on investing in market-leading hospitality projects. Partnering with them will enable us to implement award-winning hotels and hostels on an international scale.”
Eric Jafari, chief executive of BridgePoint Ventures, said: “During downturns, history has demonstrated that demand for budget accommodation either strengthens or stays the same. We like the hostel sector because it is still in its infancy and has a lot of room for growth.
“Institutional investors have gone to great lengths to improve the quality of the sector but it requires a lot more investment and competition to continue improving the standards.”
Starboard said it will seek disused retail and office buildings in prime central locations close to a main national rail stations. It requires between 30,000 sq ft and 70,000 sq ft of floor space for each hostel.