At the recent Hostels and Budget Traveler Conference held in London recently, one of the sessions discussed investment possibilities and opportunities in the hostel sector. There have been several large equity companies who have essentially “dropped their little toe in the water” to gauge the temperature of the industry.
The corporate bankers who took part in the discussion had some very useful points about the hostel industry when compared to the mature hotel investment markets. The primary point revolved around the many hostel operators who are ex “travelers” and “backpackers” themselves, rather than an operator armed with a corporate business plan.
The article makes a great read:
Hostels need critical mass before bankers bite