Hostelling International's only Manitoba hostel, a 120-bed facility in downtown Winnipeg, is shutting down.

The 120-bed facility at the corner of Ellice Avenue and Kennedy Street, which is also home to the Lo Pub and Lo Bistro, has struggled to make a go of it since opening in 2008.

"The building is actually just too big for them. I think the construction costs that are associated with a building of that size, coupled with occupancy rates that weren't quite there, have meant that they haven't been able to continue," said Clare MacKay, spokesperson for the Forks North Portage Partnership, which owns the building.

Rates at the HI-Winnipeg Downtowner range from $29 for a dorm room to $69 for a private room. That's for HI members.

For non-members, the prices are $33 and $77, respectively.

The Forks North Portage Partnership has decided, with the hostel packing things in, to sell the building.

MacKay said the hostel, as well as the pub and bistro, will likely stay open until the sale is made.

Part of the motivation to sell off the property is to see what else can be done with the space, she said.

"Its proximity to the MTS Centre and some of the other developments that are happening in the SHED [downtown sports and entertainment district], make it somewhat of an attractive property," MacKay said.

"So we're hoping that someone has a good use for it."