Browne Jacobson lead advisor on YHA acquisition of two Northern hostel businesses

Browne Jacobson’s Manchester team has advised the Youth Hostels Association (YHA) on its acquisition of two hostel businesses in Newcastle and Liverpool, from Euro Hostels Limited.

Founded in 1930, YHA is a charitable organisation providing low cost hostels, camping and glamping accommodation across England and Wales. The company has 151 hostels and 45 camp sites, and has invested over £37m in its hospitality portfolio since 2011.

In the same family ownership for nearly 20 years, the hostels occupy strategic locations in Liverpool and Newcastle, and are set to be integrated with the transfer of staff as the sale of going concerns, to the wider YHA business upon completion. The acquisition significantly extends YHA’s Northern footprint, and is a significant milestone for the business as it looks to expand its portfolio across the UK.

A Manchester-based multi-disciplinary team from Browne Jacobson advised YHA on the deal. This comprises client partner Dominic Buckley and charities partner Catherine Rustomji, associates Ryan Brown (corporate), Melanie Chisnall (banking) and senior associate Ian Deakin (employment). The team provided property, corporate, banking, employment and charities advice.

Dominic Buckley, property partner at Browne Jacobson, commented:

“The YHA is a nationally-renowned national brand, providing affordable getaways to customers worldwide. It’s a great pleasure to advise the team on further expanding its Northern base.

“The travel and leisure industry has been buffeted by challenging headwinds of late, but YHA’s expansion underlines the popularity of Liverpool and Newcastle as global destinations, as well as the growing consumer trend for short city breaks. The deal represents a significant move for YHA, a longstanding client of ours, and shows the full-service bench strength our Manchester team have to offer.”

James Blake, Chief Executive at YHA, said:

“YHA is delighted that we have been able to acquire these two new hostels in iconic UK cities. We are really excited to be able to welcome them and our new colleagues into our network. Both sites will ensure that thousands of young people will be able to learn, meet new people and improve their wellbeing and life skills as part of our operations in Liverpool and Newcastle. We can’t wait to get started and bookings for both sites are open now. It has been a partnership effort and my thanks go to all parties involved, including our advisors Browne Jacobson led by Ryan Brown.”

Christie & Co sold the sites on behalf of Euro Hostels. Euro Hostels was advised by Morton Fraser.