Dear lovely people of hostelmanagement.com,
I am writing to you on behalf of my business partner Kira and myself, as we are about 6 months into a business plan for a new, independent hostel in the Midwest (USA). It has come to a time in our planning to prove to our mentors that our numbers are accurate, and we need the support of other independent hostels in order to do so. While Kira and I may not have a lot of funds to offer up front, we are quite interested in forming a long term relationship with one or a few hostels around the US in order to strengthen our industry network.
It takes networking amongst ourselves to make sure that our community grows at a steady rate, and that is exactly what we are asking for. We understand that many successful, independent hostel owners would like to become fee based consultants, and while we understand the movement, we are interested in being in contact with those few owners who would like to help us achieve our dreams by providing us with recent numbers.
What we are looking for:
1) 2016 financials that will help us to prove our profit margin and ROI potential for investors (investors for the building and build out). Our current financials show a 17% ROI for partners who would own and develope the building. Is this absurd?
2) Any numbers data or research that support why hostels in the USA have such high profit margins.
Please write below if you are willing to discuss our needs and believe that you may be of assistance to our cause. We would be very happy to set up skype, facetime, or facebook video chat to discuss things further, once connected through email.
Let’s make 2020 the decade of the hostel boom in the USA!!