3. Why build a hostel in New York?
• 80,000 visitors to HI New York/year
• $222m annually into the local economy
(average $150 per overnight)
• Many hostel closings because of new legal
parameters
6. Background of “The New
• Intent: close loopholes in current law that
allowed residential properties, as well as SRO’s
(Single Room Occupancy) structures to be used
as Hostels.
• Went in to effect May 1st, 2011
• All hostels must be zoned properly (not
“residential”) -
• Most hostels must have two means of egress inside
the structure
• Must follow all commercial fire codes
for hotels
7. No. Active Hostels No. Tourists per Hostel (M)
No. of Hostels per Million Tourists
30 4.0
23 3.0
15 2.0
8 1.0
0 0
New York Los Angeles Francisco
San Washington DC Miami Boston
8. No. Active Hostels No. Tourists per Hostel (Millions)
110.0 0.4
82.5 0.3
55.0 0.2
27.5 0.1
0 0
London Berlin Sydney Lisbon New York
9. Key Trends
• Declines of <10%> - <13%> in Hostel
bookings in 2010 and YTD 2011 when the
impact of legislation started to be felt
• Travelers increasingly choosing other
destinations in the US over New York City
directly related to hostel closures. These
include but are not limited to:
• Los Angeles +30%
• San Francisco +41%
• Boston +27%
10. Key Trends
• New Hostels have opened in the cities
shown below, enabling these high levels of
growth.
40.0 • San Francisco: 2 new Hostels
opened up with a combined 275
30.0 beds.
20.0 • Washington DC: 4 new Hostels
opened up adding approximately
10.0 170 new beds
0 • Las Vegas: 5 new Hostels totaling
424 beds
-‐10.0
Hostel
booking
growth
NYC
-‐20.0
2008 2009 1010YTD
2011
11. Hostel Bookings Growth: New York City vs. other
US cities
2009 2010
YTD
2011
60.0
45.0
30.0
15.0
0
-‐15.0
New York Francisco
San Boston Los Angeles Miami
Washington DC
