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A BUDGET hotel chain is set to open Liverpool’s first “five-star hostel” in the heart of the city’s Cavern Quarter.

Starboard Hotels Ltd hopes to secure permission for the 240-bed development which will occupy the Kansas Building on Mathew Street.

If successful, the project will see the currently empty units which used to be the flagship Wade-Smith clothing store brought back into use.

Starboard Hotels includes the Holiday Inn and Days Inn brands, but the “Evolution’” hostel would be only the second in the country. The first was opened in Edinburgh.

Operations director Philip Houghton said the “five-star hostel” theme was serious, and the Stanley Street venture would be properly accredited.

He added: “It’s around the fact that all the dormitories are en-suite and it’s a high quality fit with a high level of guest amenity.

“They’re self-catering for those who want to cook for themselves, but there’s also a vending area and internet access.

“We’re trying to create an environment where the guest really is number one.”

He added a bed would sell for between £15 and £20, but that the hostel could cater for family groups as well.

He added: “If people wish to buy a private room with four beds they would have exclusive use of the room.

“Families that are visiting may wish to share a dormitory, which is far cheaper than trying to cram everyone into two rooms in a hotel.

“It’s a great location in the heart of the Cavern Quarter and if planning permission goes through then hopefully we will be on site this summer with an aspiration to open by the first quarter of 2012.”

The hostel will have 240 beds across 49 rooms. The roof of the building will have to be extended and the development will also include a bar.

City planning officers are recommending the bid for approval.

In a report to go before the planning committee, they write: “The proposal would operate on a 24-hour basis. Considering the concentration of late-night bars and clubs in this area at present, there will be no discernible disturbance to local amenity from this proposed development.”

To avoid potential conflict between different building uses, the uses will be controlled by condition of any approval. Restaurant and bar uses will be expected to close by 2am to non-resident hotel guests, with all windows and doors closed by 11pm.

“These measures will ensure that both existing and future occupiers are not adversely disturbed at times they expect relative peace and quiet.”

The bid will go before the council’s planning committee, to meet at the town hall, on February 15.