The commercial hybrid hostel product is still a relatively new concept and investors should become more aware of this operational model as it expands into new markets.
The term Ho[s]tel attempts to embody the hybrid product that combines hotel services with the informality and friendliness of a hostel. The hostel market is still relatively opaque, where information on the configuration of individual properties and the ratio of beds to rooms is not routinely available. This lack of transparency extends to the nature of the businesses themselves, which are predominantly owneroperated freehold interests with little need to disclose operating data. Despite this situation, growth-capital raising measures through share sales in companies such as Wombats and expansion by other groups have increased investor involvement and the quality of information available. This has highlighted a number of key similarities and differences with the wider hotel market.
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