I'm new to the forum, but am so grateful for the informational tips I've read through thus far.
I'm creating a financial model for a hostel concept, but being new to the industry I'm wondering how you all calculate the number of hostel beds your market/metro can support.
My financial model is currently based on 70% occupancy, which is the market average for hotels. How do I determine how many beds to consider offering? I'm looking at 40-100, but that's quite vague.
Note: Currently my market has 228 hostel beds, which are owned by the same person (2 properties @ 48 and 180 opening in 2006 and 2012 respectively).
Thanks in advance!