An international school could be kicked out of its campus in two years as a result of the government's plan to subsidise organisations to build hostels for young people.
The International Montessori School is on a site belonging to the Construction Association, which told the school last month it planned to build a youth hostel.
The association earlier this year renewed the school's lease until 2014.
The Federation of Youth Groups said it hoped to co-operate with the association to build a 1,000-unit hostel at the site in Temple Street, Tin Hau.
Last month Chief Executive Leung Chun-ying announced a HK$1 billion plan to build 3,000 hostel units for young people.
The government would pay the construction costs of the units on land granted to NGOs.