The London-based firm is currently negotiating additional space at the Borough High Street venue and, subject to planning approval, hopes to begin work to significantly extend the size of St Christopher's Village, London Bridge hostel.
The £2m redevelopment and refurb project would also see a renovation of basement bar Belushi's.
"The final result will be a premium offering for London customers," Robert Savage, press spokesperson for Beds & Bars, told BigHospitality.
Expansion
Beds & Bars recently reported a five per cent rise in sales growth with turnover rising to £27.8m.
The company, which operates 11 UK hostels under the St Christopher's Inns brand, is planning to open a 600-bed site near to the Gare du Nord in Paris this summer as well as its first hostel and bar in the USA.
Beds & Bars is actively looking at three sites in New York and is in detailed discussions with City Hall about operating a St Christopher's Inns business in the city.
However Savage said while the main focus for the firm was on international expansion: "the company is also actively searching for new properties in London, to add to the existing portfolio of backpacker accommodation and bars."
Extreme ends
Founded in Covent Garden in 1993, Beds & Bars now operates 26 properties in eight countries with a wide range of accommodation from dormitories to private, en-suite rooms.
Each 'beds' business is attached to a 'bars' business - mainly the Belushi's brand the company was originally founded on.
"Beds & Bars, to coin the cliché, does exactly what it says on the tin," said Savage. "Beds & Bars targets both business executives working in London during the week and also budget travellers.
"The profits do not come from middle range hotel options but rather the two extreme ends of the accommodation spectrum.
"When Travelodge charges £45 for one bed in a private room, in peak season Beds & Bars can do the same for one pod bed in a dormitory of eight. The luxury apartments in the portfolio are leased for approximately £1000 per week, per apartment," he added.
The company is currently developing its independent booking engine, which also works on the St Christopher's Inns mobile website.
The independent booking engine has already boosted direct profits by 35 per cent allowing the firm to cut its dependency on third-party booking agents - it is transferring the money formerly paid in commission to these organisations to developing the business.