USA Hostels Occupancy Statistics

Here is some information that I added to my business plan, which got a green light. Some of this may or may not be helpful for you. Most relevant is always local information. Call hostels in the area and just see how full they are...usually the staff are super friendly and totally willing to share how many beds there are and how many guests they have. It's not an unusual question because guests don't want to be in a hostel usually that only have one or two other guests...hard to build community on that.

4.0 Strategic and Market Analysis
4.1 Economic Outlook
For 2014, Adam Weissenberg, vice chairman and global leader of the Travel, Hospitality & Leisure (“THL”) segment at Deloitte Touche Tohmatsu shares “that companies should consider focusing on millennial customers (typically aged 18-34) as they present a significant growth potential. Millennials’ spending will likely only increase as they step into their prime earning and spending years in the next decade. A few hotels are launching new brands while others are revamping their existing facilities with the latest technology features to appeal to young, tech-savvy customers.” Ernst & Young (EY) document Global Hospitality Insights, Top Thoughts for 2014 noted that “hostels emerged to serve these budget-minded guests. However, alternative lodging accommodations no longer cater solely to the cash-strapped traveler; today, they have gained industry recognition as an alternative preferred by guests seeking greater flexibility, convenience and social interaction than is not commonly found in a traditional hotel setting. In addition to serviced apartments and apartment rentals, upscale hostels have captured the attention of travelers across the world. Unlike the traditional hotel model, hostels provide shared rooms ranging from 4 to 10 or more people per room, often in a twin-sized, bunk-bed format; this layout allows for the owner to maximize the amount of paying guests without increasing room inventory. ...modern hostels no longer solely attract the budget-conscious traveler. They also appeal to those seeking an interactive, socially driven lodging experience by offering amenities such as extensive public space, group events, vibrant design and high technological capabilities. Traditionally present in Europe and Asia, hostels today are gaining traction in other global regions among both travelers and institutional investors. In the US, financing for hostel development has materialized in key gateway cities, including Chicago, Los Angeles, New York and Miami.”
(http://www.ey.com/Publication/vwLUAssets/EY_-_Global_hospitality_insight...$FILE/EY-Global-hospitality-insights-2014.pdf)

Our competition is a local guest house located on 4039 N. Williams Ave (Friendly Bike Guest House), which is currently expanding due to increased demand, and offers rooms starting at $36 per person.

In conclusion, it is indicated to be a great year for hospitality with growth rates of up to 15% predicted by Robert Rauch a nationally recognized hotelier and President of R. A. Rauch & Associates, Inc. And, based on the growth within the millennial customers directly tied to hostelling we are predicting a large growth in our economic niche in Portland.

4.2 Industry Analysis
The independent hostel industry is growing rapidly in many cities around the world, such as New York, Rome, Buenos Aires and Miami.[17] This is reflected in the development and expansion of dozens of hostel chains worldwide.[18] The recent eruption in independent hostels has been called "probably the single biggest news in the world of low-cost travel and very safe".[19]
The development of independent backpackers hostels is a strong business model, with some cities reporting a higher average income per room for hostels than hotels. For example, in the city of Honolulu, Hawaii, upscale hotels are reportedly making $141 to $173 per room, while hostel rooms in the same city can bring in as much as $200 per night.[20] Even during the 2008 economic crisis, many hostels were reporting increased occupancy numbers in a time when hotel bookings were down.[21]
Even as the city’s hotel occupancy rate has fallen to 66 percent in February, from 81 percent in the same month last year, despite steep discounts, many youth hostels are reporting banner business. -New York Times[22]
Though in the past, hostels have been seen as low-quality accommodation for less wealthy travellers, at least one Australian study has shown that backpackers (who typically stay at hostels) spend more than non-backpackers, due to their longer stays.[23] Backpackers make up as much as 10% of international visitors in Australia.[24] In New Zealand, backpackers hostels had a 13.5% share of accommodation guest/nights in 2007.[25][26]. The backpacker culture is visibly present in the demographics of Portland-based travelers. Management believes that they key to remaining competitive in this field is to continually improve the community space along with adding a inter-cultural exchange program for its customers. We strive to continually improve the level of service offered by the Hostel while concurrently branding the Company’s name.
http://en.wikipedia.org/wiki/Hostel