Hong Kong authorities have failed to meet targets on the supply and construction of youth hostels, with the number of flats offered accounting for only 44 per cent of what was intended, an audit report has found.

The Audit Commission on Wednesday released its report reviewing the government’s development and management of the facilities under the Youth Hostel Scheme, which covered seven hostels, including two that had been completed and were in operation.

The review found that as of December...