The National Forest Company has announced plans to open a £3.2m youth hostel and camping and caravanning club at Moira in the heart of the forest.

The Youth Hostels Association (YHA) will operate the hostel, which is expected to attract around 12,000 overnight stays a year, primarily from schools, youth organisations and families visiting the forest.

The Heart of the National Forest Foundation will be responsible for its construction, which will incorporate renewable energy and the use of timber.

Work will begin this month, with completion expected by summer 2007.

Sophie Churchill, National Forest Company CEO, said: “YHA National Forest will bring many more people to the area from the Midlands and further afield. By enabling more overnight stays, the facilities will contribute to the sustainability of the forest as a visitor attraction. The hostel will also be built to a high environmental specification.”

The Camping and Caravanning Club will run the new site, which is to be developed alongside the hostel.

East Midlands Development Agency (EMDA) and LeicesterShire Economic Partnership will contribute £1.8m towards the project, with Leicestershire County Council, North West Leicestershire District Council and Clear Skies and Waste Recycling Environmental providing additional funding.