I have an old house with students, can i merge and make a small hostel ?

Hi,

I have an old house in a small historical town ( 50.000 persons ) in Portugal.
The house have 11 independent bedroom´s, 3 bathroom´s, 2 kitchen´s, 2 living room´s, 2 terrace - one with beautiful views and a barbecue and free wireless internet. We have a friend governess who lives there and clean and takes control of the house.
It´s located in the center - the best place in town - and is in very good conditions. In the university time, we rent to students and the house it´s always full of capacity. The city have alway´s many tourists and it´s not easy for them to find a place to stay.
Questions :

1 - Can i adapt to an hostel ?
2 - Can i merge students and clients in university time ?
3 - Or rent to students in university time and hostel in vacation time ?

We can have 2 or 3 bedroom´s with 4 dorms ( 2 bunk bed´s ) and the rest with 2 dorm´s ( one bunk bed or one double bed ).
We have in the city other apartments, we normally rent to students, but in the vacations we can " help " our possible hostel.

You can see our website with informations and photos of the house.

http://www.estadias.net/product_info.php?products_id=90&osCsid=edb810d585a03595a1e83c38539d3a73
Please click your flag in the left to see in your language.

Please give me some advices or your opinion.

Thanks,

José