A hostel where backpackers allegedly masturbated out of windows, took drugs and had sex on the roof will apply to open a bar on Tuesday.

Journeys Hostel, in Caledonian Road, King’s Cross want permission to sell alcohol in their basement until 11pm in the week and midnight at weekends.

The hearing was originally due to go ahead last month, but has been rescheduled to go before an Islington Council licensing committee on February 25.

Angry neighbours have written to the town hall asking them to block the move, citing the “stressful reality” of guests brazenly having sex on the roof, playing music and smoking weed on the street outside.

One said: “My partner and I witnessed a male visitor at the third floor window openly masturbating and joking and shouting to his companions below in the rear open area to mind their heads as he ejaculated out of the window.”

Sean Fox, who works for the Journeys hostel chain, said: “This stuff is a massive surprise. We heard some horror stories about people having sex in rooms, but we evicted the manager who was in charge then – we acted quickly and got rid.”

He added: “We believe the problems have been rectified and this bar will make things even better because we can monitor the place where people are drinking.”