Starting a hostel in California - definitely a need, yet so expensive! Funding suggestions?
Start a Hostel
Hello,
I am in the process of researching and writing a business plan to open a hostel in my home state of Califonria. I have always wanted to start and run a hostel after years of traveling and working in them all over the world. My biggest problem I faced when brainstorming was trying to chose the LOCATION to kickstart my dream. Although idealiy I would like to be somewhere in Europe or Central America, it is too dificult with the visa and business laws as a foreigner.
After returning home to Califonria for a visit I realised the complete lack of hostel choices for backpackers traveling within the states. There is only about 300 hostels in all of the USA, compared to over 10,000 in Europe. Talk about a need! Also, my town is a great locations, as it is located near the coast on the Pacific Coast Highway that many travel to go between San Francisco and Los Angeles. There is no doubt in my mind that a hostel is very much needed and will be used!
My problem is California is so damn expensive! The more and more research I do and progress I make on my business plan, the more convinced I am that this could be a success. My drawback that I have no idea how I am going to fund this.
I could possibly get some some loans from close family and even potentially a business loan, but I still dont think that will be anough. I know that my other option is to find investors, but I wouldnt even know where to begin something like that. Also, it is not like hostels are very well know or recieved in the states and I can't imagine many investors are going to chose hospitality and lodging over other potential options.
How would you go about getting the fund neccessary to move forward?
Any advice would be greatly welcomed!
Kind regards,
Kaitlyn
- Comments
6 years
Hi,
I'm Surprised nobody answered this tread yet. As the future of hostels is in the US but its gettling blocked by as you say the amount of money needed. feeel free to contact me [email protected]
6 years
Kaitlyn - Looking into the same thing in California. Let's connect if you're still interested - [email protected]
5 years
Hello Kaitlyn,
My name is Henry, I am interested in this business as well. I am in Los angeles and would love to shadow you and assist you in anyway I can during this process to learn the ropes. Please feel free to contact me at [email protected] (yes please use the 3 L's)
5 years
Hi Kaitlyn,
Don't let this barrier stop you from your dream. Start small and keep your hand out of the cookie jar for the first few years. Live on-site and and therefore live off the BEAST. You will have to bootstrap it for a while but its well worth it as your passion, blood, sweat, and tears will remain within the walls of your building long after you move off-site. We started out of a 1,500 square foot victorian house that only had 18 beds and five years later we have 3 locations in San Diego that hold almost 300 beds combined. We need more people to open up so the infrastructure of our industry grows to meet the demands of the shared economy revolution. Let me know if you need any more guidance on your journey and best of luck!
Jimmy Black
CEO
ITH Hostels & Eco Lodging
Hostel Road Trip Podcast Project
5 years
If you are still looking at opportunities in sourthern California, I am an avid investor and looking at opportunities in this industry and am actively seeking a partner that can help run operations and I can provide the financial backing and marketing support. Please feel free to contact me to chat further. My email is: [email protected]
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