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14 years
I wouldnt have thought declaring a site 'financially unviable' would be the best way to sell a property...
The BBC takes a look at why five YHA hostels in England have to be sold.
The video.
In the Lake District, the hostels to close are Derwentwater at Keswick, Helvellyn at Glenridding and Hawkshead.
In the North East, Newcastle's hostel in Jesmond Road will close, as will the one at Osmotherly, in North Yorkshire.
This article covers the same story.
The YHA claims the sites need a large amount of investment to keep them running as profitable youth hostels. Sam Littlechild, a spokesperson for the YHA explained, "The Lake District has one of the highest concentrations of hostels in the country so it's important that we maintain a presence here but those sites just aren’t financially viable."
And this one.
Derwentwater’s 88-bed Barrow House Hostel was built in 1787 by Joseph Pocklington, the son of a wealthy banker. But the YHA says it needs almost £1.2 million worth of refurbishment work.
Similarly the Helvellyn hostel, which is approached by an 0.75-mile track from Glenridding, needs an investment of £1,180,000.
Locals are hoping that the buyers of these properties will continue to run them as hostels. Maybe someone here is interested?
14 years
I wouldnt have thought declaring a site 'financially unviable' would be the best way to sell a property...
14 years
Not five hostels but eight:
See the YHA press release and my own take on it.
14 years
If the YHA says that a hostel is 'financially unviable' it means: unviable to pay its share of the YHA management costs. Many former YHA hostels are now appearing in independent hostel listings, being run with enthusiasm by people who don't insist on big salaries, or even by volunteers.
For example, we stayed at YHA Bellingham (Northumberland) a few years ago. It had a good atmosphere, but it did seem to need some repair work. That the YHA closed it was not too surprising. But I have just noticed it alive again in the Independent Hostels Guide.
YHA's idea of "refurbishment work" is probably to get it to a level that the YHA now sets themselves: better than necessary for a backpackers hostel. YHA hostels are now all very well fitted out, but they could operate just as well as backpackers hostels with substantially less costly work.
I would be interested in being involved in keeping some of these hostels running. Pity that one would have to start by paying YHA the market value of the property.
And just remember, some of these hostels were donated to the YHA many years ago, and were looked after for many years by volunteers at a much reduced cost to the YHA!
14 years
The fact that they are selling potentially highly profitable places in the Lake District is a sad indictment of their "business model". The YHA has a near monopoly on hostels in the Lake district, probably the most popular rural tourist destination in England. Due to it's national park status and the unavailability of suitable property they are unlikely to face significant competition in the future. Now, instead of capitalising on this, they are going to sell hostels there. Agree totally with what UKtrail says about the paying the salaries of YHA office bound managers.
The sad thing to me seems to be that their only way of going forward is selling their most potentially valuable hostels to gain money. You could (almost) understand it when they were getting rid of a small out of the way place (although I wouldn't have agreed with it) but selling somewhere like Derwentwater shows that they have no viable plan for the future besides selling their best assets to pay the costs of their top heavy administration.
If you owned a place like that outright without huge debt (like the YHA does) you would make a fortune. If you had to buy it with debt then it would be hard to run as a hostel. I'd imagine it might become a travelodge like everywhere else in this country.
14 years
...being run with enthusiasm by people who don't insist on big salaries, or even by volunteers...
Does anyone know what the salaries at YHA or other HI organizations are? If they are nonprofit organizations or charities, wouldn't that information be publicly available? I'm just curious what the administration costs are like and how they compare to "for-profit" hostels.
14 years
At least in the UK most for profit hostels are run by owner operators. These don't have Marketing Directors, CEOs, IT departments, personnel departments , and various layers of off site hostel operations managers. They have the people who own and run the hostel, and whatever staff they need to run the desk and clean the hostel. In some of the larger ones the owner may not work at the hostel, but employ a manager on-site to do this. Obviously you need to have enough profit to meet these costs.
If you compare this to the various HI Associations, they have high levels of administrative overheads - in some cases around 20% or more of total revenue goes out on administrative costs. There are some benefits, such as group marketing and group wide IT systems, but the costs associated with these are enormous. Consequently the only way they can keep the business afloat is to regularly sell off the smaller hostels. Or in this case some larger ones too. I am sure that a lot of the management of the different associations would be happy to have a network of large hostels in cities and prime tourist areas, and sell off all the smaller ones. Then any smaller ones would be affiliates, owned and operated independently, but maybe marketed with the HI ones. This is what has happened in Australia and NZ.
Maybe this is the only way for the future, it just seems sad to those who've known the large network they have had and the ethos of what they stood for. If the only way to survive is have a large administrative structure and a few big city places they are pretty much no more than a budget hotel chain.
13 years
The Guardian has published an article about this. The writer has made a good effort to write a balanced report:
http://www.guardian.co.uk/travel/2011/feb/23/youth-hostels-association-selling-off
My own opinion is perfectly expressed by the following 2 contributions to the comments below the article:
I've been a life member of the YHA for about 20 years and I object to the way it has been changed to be more focused around making money, city destinations and car drivers.
There is holiday accommodation already available in every city, but the YHA had a unique role in providing cheap places to stay in beautiful locations off the beaten track, often that could only be reached on foot. It's rubbish that people aren't prepared to 'rough it', look how many people go camping, which is far rougher than a YHA bed.
The YHA should stick to its founding aims and keep remote hostels open.
I worked in Lakes hostels for several years (up to 2006) and became increasingly disillusioned with the way the organisation was being run centrally. Increasingly, National Office staff had no background (or seemingly, little interest) in the culture of YHA, and instead wasted god knows how much time and money implementing wrong-headed centralisation schemes and bringing in expensive consultants with no understanding of or empathy for youth hostels. The threat of closure or absorption into a larger hostel hung over the head of managers who weren't happy about changes and didn't toe the party line........
Last year YHA received accolades for its excellent local food; at the same time, hostel managers were being told they now had to purchase everything from Brakes, thus massively increasing their carbon footprint and withdrawing support from local businesses. .......
The recently announced closures to me are symptomatic of a deeper malaise within this once-great organisation which has woefully lost its way. I worked at Derwentwater and Hawkshead - they are both very close to my heart and I'll be immensely sad to see them go. But I feel that without some deep systemic changes to the organisation we will see more and more of this, until we are left with a string of soulless, homogenised and overpriced travelodges.
I would add that many of these properties in the past were DONATED or sold cheaply to the YHA, and then restored and maintained with the help of lots of enthusiastic volunteers. I don't believe the YHA has the moral right to try to sell them at full market value, perhaps to (the next generation of) those same volunteers!
I am quite certain the YHA will not listen to the likes of us complaining. They regard us as old-fashioned.
The questions relevant to this forum are: For these hostels to continue to run as hostels, is running by independent groups or companies the only way? Most groups or companies that have the required funds are more likely to turn them into hotels or care homes.
There has indeed been success with two small hostels in mid-Wales: the Elenydd Trust, a group of volunteers, are running these hostels with great success. But those hostels each cost around £130,000, within the scope of volunteer effort. For the Lakes hostels, we are talking of a million pounds or more. Any ideas?
13 years
You can pull up financial reports for non-profits here. You need to make a free account to access them.
Thanks for the tip. I will sign up. :)
I would add that many of these properties in the past were DONATED or sold cheaply to the YHA, and then restored and maintained with the help of lots of enthusiastic volunteers. I don't believe the YHA has the moral right to try to sell them at full market value, perhaps to (the next generation of) those same volunteers!
I am quite certain the YHA will not listen to the likes of us complaining. They regard us as old-fashioned.
Is it the entire HQ of the organization that wants to sell off the remote hostels, or just a couple of people who are leading the movement? Do the members have any say over the direction of the organization or who sits on the board of directors?
There has indeed been success with two small hostels in mid-Wales: the Elenydd Trust, a group of volunteers, are running these hostels with great success. But those hostels each cost around £130,000, within the scope of volunteer effort. For the Lakes hostels, we are talking of a million pounds or more. Any ideas?
Do you know if the hostels being shut down are profitable, and by how much?
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