HOAX Liverpool unveiled as start of luxury hostel chain

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HOAX Liverpool and Hopskotch Street Kitchen and Bar, opposite the world famous Cavern Club, will be the first of a new chain of luxury hostel accommodation to open, with its launch planned for July 2013.

The result of a joint venture between Starboard Hotels and Union Hanover, funded by BridgePoint Ventures and IPIN Global, the group of hostels will deliver a fresh, vibrant and sociable alternative to budget hotels in key tourist cities throughout the UK and Europe.

Playful and cheeky design

Playing on the HOAX name, each property will be individually designed to have its own personality, with a common theme of playful and cheeky design through the portfolio.  Another common element will be that each hostel will be established in a converted building whose original use has become redundant.

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HOAX Liverpool

The Liverpool hostel, based at the junction of Matthew Street and Stanley Street, opposite the world famous Cavern Club – home of the Beatles, is currently being converted into a thriving 282 bed space five star hostel and a trendy Brooklyn-style bar and restaurant.  Built as the Kansas Buildings tea warehouse and later used as Wade Smith department store, Starboard in joint venture with Union Hanover Securities purchased the 23,000 sq. ft. vacant building from Quintain last year.

The joint venture partners

Starboard Hotels is a developer and operator of franchised hotels and high quality tourist hostels, including the award winning 620 bed space Smart City Hostel in Edinburgh.

BridgePoint Ventures (BPV), an international boutique property investment firm, in association with IPINGlobal, are providing the investment for the rollout of the HOAX chain and are actively involved in the design and positioning of the hostels.

Paul Callingham, Managing Director of Starboard Hotels, says: “BridgePoint Ventures is an ideal partner for Starboard. Eric Jafari (CEO of BridgePoint Ventures), with his marketing background, is passionate about this sector and brings flair and creativity to the project.  BPV 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.”

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Hostel sector: room for growth

Eric Jafari, Chief Executive Officer of BridgePoint Ventures, says: “During downturns, history has demonstrated that the 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 in improving the quality of the sector but it requires a lot more investment and competition to continue improving the standards.”

Converting commercial buildings

As thousands of properties sit unoccupied in major cities throughout the UK, a strong focus for Starboard Hotels, who has extensive experience in working closely with investors to establish viable option for distressed assets, is the conversion of existing commercial buildings.

Paul Callingham adds: “Disused retail and office buildings often lend themselves perfectly for conversion to hotels and hostels. Our site in Liverpool is the perfect example of a prime location in a city that is a popular city break destination.”

Starboard is keen to identify sites for new hotel development, and is actively looking for commercial property throughout the UK. A property which could be considered suitable for change of use into a hotel or hostel would be centrally located, near a main national rail terminal train station, and available with floor space of between 30,000 and 70,000 square feet.

About Starboard Hotels

Starboard Hotels is an owner, developer and operator of branded, limited service hotels and high quality tourist hostels situated throughout the UK.

Starboard Hotels is a franchisee of Intercontinental Hotels Group (IHG) and Wyndham Hotel Group, and operator of the Smart City Hostels in Edinburgh.

Starboard Hotels’ current operating portfolio includes the Holiday Inn Express Burnley, Days Inn Wetherby and Smart City Hostels, Edinburgh. Further active business projects are ongoing in key locations through the UK.

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