

Why Hostels Are an Untapped Investment Opportunity in the U.S. | Mike & Nate E34
Jun 3, 2025
Explore the exciting world of hostel investments and discover why they're an untapped goldmine in the U.S. market. Learn how to transform underperforming assets into thriving destinations with innovative guest experiences. Uncover the secrets of successful marketing strategies that fuel growth, especially targeting Gen Z travelers who crave community. Delve into the financial advantages of rethinking revenue models and why flawed properties can be lucrative. This insight could reshape your view on hospitality investments!
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Bought Hostel at COVID Low
- Mike and Nate bought a tired hostel during COVID for $800,000 that now generates $800,000 in annual net income.
- This rare deal demonstrates hostels' powerful potential as a hospitality investment.
Hostel Revenue Multiplication
- Hostels increase revenue per room by converting standard rooms into shared bunk beds charging per bed.
- This model triples income by turning a $100 room into $300 by using six beds at $50 each.
Prototype For Scalable Success
- Build a strong prototype hostel to validate the business model before scaling.
- Hire experienced advisors and CFOs early to refine systems, processes, and financial targets for growth.