The Youth Hostel Association may build several new hostels in the East Midlands - only months after closing several loss-making ones in the region.

Leicestershire has been earmarked for the new hostels, with Leicester, Rutland and the National Forest area as possible sites.

The association says the county could attract an extra 100,000 visitors a year as a result.

The decision comes after the association's only youth hostel in Leicestershire, at Copt Oak near Coalville, was closed in September 2002 because of overall losses of �5m across the country.

Sold off

Bev Bamber, of YHA said: "The decision to sell Copt Oak was made following the foot-and-mouth crisis 18 months ago when the association had to sell 10 hostels.

"We had to raise money to plough back into the network and maintain other hostels."

He said the group is already planning to build a new hostel at Moira in partnership with the National Forest.

The YHA closed 10 hostels in 2002

"We are also considering the city of Leicester because of its cultural diversity and also Rutland Water because of its location," Mr Bamber said.

"We often work with partners, like we are at Moira, and they operate as an affiliated hostel so it benefits both sides."

He said it was not clear when the new hostels would open: "It is an on-going process, and it does take time to get them up and operating."

The YHA sold hostels at Aysgarth and Linton in the Yorkshire Dales, Dufton in Cumbria, Elton and Buxton in the Peak District, as well as Copt Oak in Leicestershire and Thurlby in Lincolnshire.

The group also closed facilities in Norwich, Windsor, and Holmbury St Mary in Surrey.

It is considering several other new sites across the country, including Durham and Berwick-on-Tweed.