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The Vianden youth hostel will move from its current location close to the castle (pictured) to the site of the former CIPA retirement homePhoto: Visit Luxembourg 

Secretary of state for economy Francine Closener announced the project for a hostel with 200 beds saying it would be built beside the train station.

Once completed, the hostel will be the eleventh in the grand duchy.

Closener also outlined plans to move the Vianden youth hostel from its current location close to the castle, to the site of the former CIPA retirement home. The majestic manor is situated on a wooded hillside overlooking the town. The new site would offer 200 beds.

This month, Esch-sur-Alzette inaugurated its youth hostel with 110 beds.

“Considering the growing demand for this kind of accommodation, the projects for two future youth hostels in the north of the country, with more than 100 additional beds, will complete the national tourism offer of this type of accommodation,” Closener said in a statement.