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Best properties when looking to open a hostel?

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kjaws started this discussion 13 years 10 months ago

Hi there,
I am looking to open a hostel in Austin, Texas. There are no hostels "for sale" here, and I would, therefore, be converting an existing property to a hostel. What are the best types of properties for such? I have just started this process and am looking for some, any guidance on how to proceed!
Many thanks in advance!

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eighthlion

13 years

Hello,

Congratulations on the venture.
There already is great advice in this forum - keep searching here!
I am in the same situation but a year ahead in the process to open a hostel and this is what I would recommend.
First of all, put in writing why you want to open a hostel.
Go to the city planning department and find out how your property is zoned and what codes/ regulations would apply to open a hostel. Most likely there are no
written details. Research how the other hostels received their permit but, keep in mind, regulations constantly change! I am looking to open a mini hostel in my city and have a hard time meeting requirements such as wheelchair accessibility that also includes two bathrooms, number of parking spaces, buffer and landscaping. I just have a house in a residential neighborhood with, obviously, limited space. Also, I am suppose to reside on site. I need to hire an architect, landscape architect, engineer and do a survey of the property to present the proper site plans - just to get the permit costs run up very high! Let me warn you - the process is daunting and frustrating. That's when you come back to your list of what motivated you to open a hostel in the first place ;)
Did anyone here have a more positive experience with city officials?

Simultaneously do your research! What is your market? Call universities etc and see where the demand is. Can you survive with existing competition? Location and connectivity is important. I was able to built a great network with professionals who support me with the business plan etc. This includes people from the neighborhood and head of chamber of commerce, professor of local college, an organization dedicated to develop/ revitalize downtown. The convention and visitors bureau often provides useful data. Also the hostel community, meaning other hostel owners, are incredibly open to give advice and share their experience - take advantage of that.

It takes some dedication! Feel free to contact me with further questions.

Viel Glück

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kjaws

13 years

Hi there,

Thank you so much for the thorough response and great advice. I have been anxiously awaiting a response while simultaneously researching, researching, researching. I just contacted the city about zoning issues, but I suppose having the property first would be helpful. I am still waiting for a response. My partner and I are just starting the business plan and are very motivated at this stage, but I am already feeling overwhelmed! May I ask where you are located? Feel free to e-mail a private message as well. You said you are a year into the process? Have the city officials been the greatest obstacle? Well, I will continue to search this forum for great tips and advice. I am sure I will be contacting you soon with more questions.

Vielen Dank!

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Irenesky

13 years

Hi kjaws,

I also live in Austin and my husband and I have been on the lookout for properties to start a hostel! You must be the one that one of the realtors told us about! Looks like there is some competition out there...friendly competition, of course :) Out of curiosity, what area of town are you looking at? We were advised at the development center to stick to a property with a CS-1 zoning or CBD (downtown). Especially if you want to have a bar in your hostel it is important to have these zoning requirements. Both of these zones allow for hotel/motel (which is what they told us we'd be classified as). There are many office properties downtown but they are expensive and would need lots of renovations to support a hostel. We have been looking for several months and have yet to find an ideal property....but we haven't given up yet! We have been fantasizing about the water intake structure on Town Lake across from the old city power plant on Ceasar Chavez, but it's owned by the city...not sure how hard it would be to get without a lot of money to invest. Wanna go halves on it? lol :) The interesting thing is that the only hostel in Austin, the HI hostel on Lakeshore Blvd. is actually owned by the city...I thought that was very interesting. Well, I'd like to keep in touch with you to know your progress and vice-versa. Good luck to you...may the best man win, lol!

Sincerely,
Irene

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kjaws

13 years

Hi Irene,

Good to hear from you. When did your real estate agent mention another person looking for hostel property? I just started looking, so this could mean there is yet another person in Austin trying to do the same thing. The big challenge is, of course, location and price of real estate. Why didn't I do this 10 years ago? I didn't know HI was owned by the city. I tried contacting the manager but haven't heard back from her. Interesting.

Well, let's keep this dream alive. Maybe collaborating would be a good idea... who knows? Feel free to e-mail me any great properties you find! ;) Ha, ha.

But seriously, if you ever want to get together and talk about the hostel possibilities, just let me know.

Best of luck to you.

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Ty45P

13 years

Hey All,

Looks like there's a few of us here with the same idea. I'm in the planning stages of opening a hostel in Austin as well. Haven't been active on the forums but this site is great for research. Running a hostel is my dream, if it's yours too I wish ya the best of luck. We're going to be competitors, but let's make it work. Austin is big and busy enough for multiple hostels, I'm honestly surprised there is only one.

Good luck!

-Tyler

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Irenesky

13 years

Wow, looks like we're all on to something here! I wouldn't be surprised if there are even more people out there, not on this forum, who are also thinking the same thing! I agree Tyler, I am surprised there is only one too...even in Dallas and Houston there are not any really good hostel options! Have you already found a property Tyler? It has been a dream of ours to start a hostel for a while now, especially after staying at some great ones in Europe and Austin definitely has a need...especially during big events like SXSW, ACL, and the bike rally. I am open to working together to get something going, just wating on that prime piece of property before making the next move.

Good luck to you both, we'll be in touch :)

Irene

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austinowner

13 years

I own a property that may be well suited for a coop, hostel, or BandB type business. Has many rooms and walking distance to downtown. Let me know how to reach you and email me directly at [email][email protected][/email] as I am not active on this site. Regards.

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Mariya

11 years

kjaws, Irene, Tyler,

Hello there! It's been a couple years since this thread began, and I see it appears only one more hostel has opened in Austin - does that Firehouse Hostel belongs to any of you? I too am considering a hostel in Austin, and I'm curious if any of you are still working on getting your own hostels going - in Austin or elsewhere...?

I have yet to actually even visit Austin, but I've heard so much that intrigues me that I'm planning to move there this fall. I thought I'd just fiddle around with some other career avenues and continue to marinate on my hostel-owning dream for a few more years, but it just occurred to me that might be silly!

My intended approach would be less "youth" and more eco-tourism/communal/retreat-ish, and my ideal location would be someplace a bit outside of town, with pleasant scenery. Lots of research to do!

Any and all thoughts appreciated!

Thanks,
Mariya

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