International hostel operator Visit Journeys has secured a deal with Stanley Investments LLP to transform Mindel House in Manchester city centre into a 300-bed backpacker's hostel.
The Grade 2-listed building, located on Minshull Street, has lain predominantly vacant for a number of years. Mindel House is currently financed with Dunbar Bank, which is supporting the proposals.
The project cost is around £3m although further details of deal and how much Dunbar Bank is contributing was not disclosed.
Steve Holland, chief executive of Visit Journeys, said: "We have identified a significant gap in the Manchester market for quality budget tourist accommodation to meet the needs of the large numbers of backpackers wanting to visit the city each year. Mindel House is ideally located to meet that need being in close proximity to
major public transport hubs and attractions."
Manchester-based planning and development consultancy Hourigan Connolly was appointed to lead negotiations with Manchester City Council and undertake consultation with local stakeholders and assist both Visit Journeys and Stanley Investments on planning matters.
Marc Hourigan, director at Hourigan Connolly, said: "The proposals will secure the long term future of a statutory listed building in a sympathetic manner and will make a significant contribution to the City's tourist offer and economy".
A planning and listed building application will be submitted to the Manchester City Council later this year.