Hello! A couple questions - probably primarily for those of you with hostels in the U.S.
I am thinking about opening a hostel in a U.S. city suffering from a declining population, high unemployment rate, and loss of industry - however, with a lot of great tourist attractions, food, culture and a thriving arts community. Due to the foreclosure crisis, the city is full of vacant lots and abandoned properties. I was wondering if anyone has heard of any grants available that might apply to the purchase of property for a hostel as "creative reuse" of vacant property? Or grants for renovations on these properties?
Also, has anyone heard of running a hostel as a non-profit organization? Is this something that could be a possibility?
Thanks for your help!
14 years
Hey CLEroadtripper,
Many (all?) Hostelling International and YHA councils are run as not for profit organisations. eg check out the footer on this website http://www.himinnesota.org/
What city were you thinking of? Detroit? I know there are a lot of cool grassroots things happening there right now. It would be great to see a hostel like you are thinking of get off the ground.
Alas, I have no idea about grants. :(
Good luck though.
14 years
Thanks for your help! I didn't realize that HI was a non-profit. I found another thread in the Hostel Operations forum that had some more information on non-profit hostels vs. independent ones.
No, not Detroit. Cleveland - Home of the Rock and Roll Hall of Fame! We have a lot of really cool things going on right now in the areas of sustainablity and community development, and a lot of really cheap properties, too . . .
14 years
Many (all?) Hostelling International and YHA councils are run as not for profit organisations.
It depends on the country. E.g., HI-USA is a registered non-profit organization, but HI Canada isn't (if I recall correctly).
Cleveland sounds like a good place for a hostel. I don't think there are any there yet...
14 years
Hi Josh,
HI Canada is a registered non profit. Used to have charitable status as well until a couple of years ago when it was revoked. HI Canada has a sort of franchise model. Not sure how good it is since they have gone from close to 80 hostels a few years ago to now having 58 but worth checking out. Here is the link http://www.hihostels.ca/248/hi-canada__hostel_info_kit.hostel.
14 years
HI Canada is a registered non profit. Used to have charitable status as well until a couple of years ago when it was revoked.
Sorry, my mistake -- I don't think we have a separate "charity" status in the US, just "non-profit" (501(c): no taxes). I was confused about the word "charity"... I remember reading that something was revoked...
14 years
No worries. The charitable status helped with the ability to fundraise since tax receipts could be issued. In terms of applying for govt grants, the non profit designation still allows them to receive.
14 years
Hello! A couple questions - probably primarily for those of you with hostels in the U.S.
I am thinking about opening a hostel in a U.S. city suffering from a declining population, high unemployment rate, and loss of industry - however, with a lot of great tourist attractions, food, culture and a thriving arts community. Due to the foreclosure crisis, the city is full of vacant lots and abandoned properties. I was wondering if anyone has heard of any grants available that might apply to the purchase of property for a hostel as "creative reuse" of vacant property? Or grants for renovations on these properties?
Also, has anyone heard of running a hostel as a non-profit organization? Is this something that could be a possibility?
Thanks for your help!
With the low cost of commercial real estate in cities like Detroit, Cleveland and Pittsburgh (4000 sq. ft., decent condition, decent area, less than $150K in Pittsburgh), if a grant is needed to buy a building for a hostel, I doubt one could make enough money to sustain it.
14 years
Just as a quick update - I am applying for a grant that supports start-up businesses that promote economic development in Cleveland, including tourism. It's a small grant ($30,000), but if I get it, my project will gain a lot of credibility in the local business community and will hopefully help with fundraising, finding investors, etc. I also found a great property (if I can get the money together in time!) in the historic market district of Cleveland . . . so things may start moving forward with this!
Thanks to everyone for your help!
7 years
I am so happy to find this post. I am looking at the very same thing on the Western Slope of Colorado. I'm working on running as a non profit as well. What kind of hurdles have you had to jump to get your non profit status and have you been successful for grants from the city?
Any help or ideas would be much appreciated!
Thanks,
Tish
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