A new £10m luxury hostel targeting younger tourists will open in Edinburgh at the end of May.

Called Smart City Hostel, the 132-room property will be the first of a number of higher quality, branded hostels planned for the UK by owner and operator, Smart City Hostels (SCH).

SCH has worked with VisitScotland during the development of the concept in order to achieve a five-star accommodation rating under the Quality Assurance Scheme (QAS). Philip Riddle, VisitScotland chief executive, said: “This is an exciting, innovative development which is well founded on changing consumer expectations and needs.

“Being located in the heart of Edinburgh, the Smart City Hostel is an ideal base for visitors to get out and about to experience everything from shopping to the city’s outdoor activities in the surrounding area.”

The hostel will be housed in the five-storey Blackfriars House, which will be completely refurbished. A new eight-storey extension will also be built.

Alex Stewart, operations director of SCH, said: “Young travellers have increasingly high expectations of urban destinations and we aim to cater for these.”