The International Youth Hostel Federation will open its first directly managed hostel in Shanghai next month and initiate the direct management pattern in full scale in the city by acquiring back the franchised outlets currently operating there.

Currently, there are four youth hostels in Shanghai, but all of them are franchised, which according to Zhang Wei, secretary-general of International Youth Hostel (IYHF) Beijing, has made the management work difficult.

International Youth Hostel will invest about RMB10 million on the new hostel which will be located in Putuo District of Shanghai, and offer 150 rooms priced at 40rmb-300rmb per night.