A youth hostel franchise is aiming to breathe new life into struggling Manchester pubs by creating 'no frills' accommodation for backpackers and travellers.

Journeys converts sections of pubs into hostels by installing bunk beds for visitors who can then boost landlords’ food and drink takings through their added custom.

Journeys, which is based in south London, currently has four sites in the capital and one in Brighton, and it has identified two locations in Manchester as part of its plans to open a further 15 hostels during 2011. One of the proposed sites is near Manchester Metropolitan University.

Director Derek Bodman said: “Both locations have potential to create new hostels with bed capacities of 250-500.

“They also have a long list of applicants who are interested in being the franchisees for these sites and managing the hostels if the bids are successful.

“What we are now really interested in is finding some smaller sites within Manchester city centre and hope that they can team up with pubs which are looking for a new income stream in the current financial environment to achieve this."

Mr Bodman also believes Manchester makes a “fantastic location” because it is a strong draw for soccer fans and has a bustling cultural sector.

He said: “There’s an emerging Asian market, especially Chinese, all of whom are itching to travel to the UK because of the football.

“For many within this backpacker market, Manchester is something of a Mecca.

“Not only this, but there’s a cultural atmosphere about Manchester which is unique and already draws hoards of backpackers every day.”

British pubs have been feeling the pinch as punters spend less and duty on beer continues to rise.

Journeys says that hostelling is booming as the trend for “staycations” grows, and people seek cheaper accommodation alternatives.

The group's model allows pubs to keep their character and bars while adding vital 'micro cell' bunk beds, which include full blackout curtains, individual power supplies, shelves and lights to create a private space within a dormitory. Extra revenue is created for the pubs as visitors often buy drinks and food from the bar.

The group said one of the first Journeys sites, which has been running for two years, was created in a dilapidated pub and in its second year of trading turned over £630,000, yielding a profit of £221,000.

Mr Bodman added: “The British pub is an iconic institution, and we are convinced our model offers hard-working landlords a means of increasing profits, and in some cases survival.”

• THE UK's franchise businesses grew turnover by five per cent or £600m last year to £12.4bn, new figures show. A survey by NatWest and the British Franchise Association showed the number of franchise systems reached nearly 900, comprising almost 37,000 franchise business units. The sector created 56,000 jobs, taking total employment to 521,000, the report says. In the north west, turnover remained flat at £1.3bn.

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