Rumors are flying around Montrose that the Lovett Inn, the renowned bed and breakfast in the very heart of the neighborhood (and a Best of Houston winner for Best In-Town Get-Away) is being sold to a non-profit group that will turn it into, of all things, a youth hostel.

We're still trying to track down the rumors, but supposedly an announcement was made at a meeting of the Neartown Association last night.

The Inn , which opened in 1989, prides itself on its casual luxury, and it also hosts wedding receptions and other such events. Not quite the common vision of a youth hostel, but maybe upscale is the new trend.

One Montrose insider who's heard the rumors isn't impressed: "Just what Montrose needs and walking distance to Covenant House," he tells Hair Balls, referring to the youth counseling and housing center a couple of blocks away that sometimes generates resident complaints.

More on this as we hear details, and if you're in the know or have an opinion, e-mail us or add a comment.

Update: We've heard from Trevor Eades of the Hyde Park Association:

I attended a meeting last night, and heard from Barbara Wein, Hostelling International USA - she was the speaker. The only details I really know, is that Hostelling International are in the process of finalizing details to purchase the Lovett Inn, and turn it into a Hostel. This will be the first hostel in Houston (apparently). I believe (and I could be mistaken) there will be 50 beds.

So it looks like there's something to it. Here's the Hostelling International USA's facility in Austin.

Click here for a further update, with details straight from the organization buying the inn.