An interesting article about hostels in South Beach, Miami:
Excerpt:
The idea [of hostelling] has always been more popular in Europe and Asia, where the beds are seen as a cheap rest stop. But hostels on South Beach focus on creating a sense of community by organizing trips to the Florida Keys or Fort Lauderdale, enjoying the Miami club scene without waiting in line, or by hosting Sunday beach parties on the sand.
And at $30 a night per person -- sometimes even as low as $16 -- the American hostel market is starting to come into play.
[...]
The hostelling industry in the U.S. generated $17.8 million for the 2007 fiscal year, which ended March 31, according to Hostelling International USA, a nonprofit hostel organization which oversees the largest network of hostels in the U.S.
But some hostels are not members of the organization, like many in Miami Beach, and there is no association that keeps track of any industry data.
Hotel experts note that the industry is going through a transformation, especially in South Florida, where discount hotels are now offering hostel room prices.
"Discount hotels are saying, 'I don't want to convert fully to a hostel because of the connotation that comes with that, but I want to provide hostel rooms,"' said Andrew Wharton, managing director for the accounting firm KPMG LLP, and is responsible for the real estate and hospitality practice in the Southeast.
Plus, older property owners in Miami Beach are realizing they may not have the cash flow to pump more money into renovating their buildings. So owners are looking at converting to a hostel as a way to "put more heads in beds and pack the square footage," he said.
Take a double-room that was once renting for $100 a night. When you put six people in that one room and charge $20 a night per person, you are increasing your revenue by 20 percent.
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