Hello Everyone,
So thankful there is a forum here for all of us Travel/Hostel lovers. I think we’ll all succeed if we work together!
My dream is to open a Hostel/Guest House in Central/South America or possibly in Hawaii.
I am confident it would be a success. I even have potential backers. Just don’t know where to start in terms of the Business Plan, mainly in costs, how profitable are hostels etc.
I already have the perfect vision for the layout of the hostel and how it will be operated.
I’m very passionate about this opportunity and appreciate any insight into how to open a hostel, start up costs, manage etc.
Thank you,
Amber
15 years
My dream is to open a Hostel/Guest House in Central/South America or possibly in Hawaii.
WTF, that´s exactly my dream! :eek:
A "perfect vision for the layout" is fine, but there is usually no perfect building available, unless you build it from scrap, which is unlikely because undeveloped land does not exist in good locations (except in Berlin).
Anyway, latin America is huge, have you got any particular place in mind?
15 years
My dream is to open a Hostel/Guest House in Central/South America or possibly in Hawaii.
Welcome to the site :)
If you open in Hawaii are you thinking of Waikiki/Honolulu or a quieter location?
15 years
Santa:
Definitely on a beach...possibly Costa Rica, Panaman, Columbia, Brazil... I'm doing research into the next up and coming locations for backpackers, as SE Asia is slowly on a decline, its about peeked. I'm fairly certain we would have to renovate dramatically or build from new.
Hostels:
I was recently in Waikiki with my cousin and friend, we're considering going in together in the North Shore area.
Right now I'm very open to options and possibilites. Mainly just looking for the next big place with little competition.
Where I'm lacking knowledge is Start Up Costs (which obviously vary dramtically per region), potential profits, and laws for ownership and running such businesses.
15 years
Definitely on a beach...possibly Costa Rica, Panaman, Columbia, Brazil... I'm doing research into the next up incoming locations for backpackers as SE Asia is slowly on a decline, its about peeked. I'm fairly certain we would have to reonvate dramatically or build from new.
I don´t know much about Central America, but I think Brazil could use many more hostels. The entire southern coast is full of nice beach towns and islands. Ilha Grande for example, 100km from Rio.
Mainly just looking for the next big place with little competition.
That´ll be Cuba as soon as Fidel dies and the embargo ends.
15 years
A clean, safe, modern, trendy "flashpackers" with high ratings would probably do well in Waikiki. I'm guessing that a lot of hotels there aren't doing so well and maybe a hostel could be opened in one of the smaller hotel buildings. (I even have one possibility in mind if you're interested, maybe ~300 beds ;))
Some of the other hostels in the Islands are very low quality (unlisted in booking engines). If you make a top-notch hostel I'm sure people will stay there.
15 years
Yes I'm interested!!! Where is this 300 bed place? Are you in Hawaii?
That's exactly what I was thinking. I was down there last week and randomly met a few Hostel goers, they were telling me horrible stories about their Hostels and the prices seemed outrageous.
I have a firm belief that because Hostels are cheap they are operated cheaply and this is not necessary, at least not as obviously. With a little love for what you're doing, pride for your place and creativity I know I can run a great Hostel at affordable prices.
Does anyone know roughly the average revenu/profit for Hostels. I know this can range dramatically, but I'm sure there has to be a suspected average otherwise no one would get into the business. People keep asking me how I expect to make any money. . .
15 years
People keep asking me how I expect to make any money. . .
Simple answer:
Hotel: 1 person pays $ 100 for a single room.
Hostel: 4 persons pay $ 25 each for a quad room.
15 years
Are you in Hawaii?
I will send you a PM.
Does anyone know roughly the average revenu/profit for Hostels. I know this can range dramatically, but I'm sure there has to be a suspected average otherwise no one would get into the business. People keep asking me how I expect to make any money. . .
Read the section on industry growth here:
http://en.wikipedia.org/wiki/Hostel
Like Klaus mentioned -- $25 * 8 = $200 per room:
http://archives.starbulletin.com/2006/07/09/business/story01.html
...several hostels are serving people traveling on a shoestring by offering dorm-style accommodations, with beds starting at about $25 per night.
Although that might seem like small change, the hostel model can drive per-room revenues of as much as $200 when eight people share a unit, which is not unusual.
That's considerably more than the average daily rates generated by upscale hotels in Hawaii, which posted average daily rates of about $173 for the first five months of 2006. Daily revenue per available room for upscale properties was about $141 through May.
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