Welcome to New York:Hosteling in the capital of the world

George FinnHostelling International USA

New York City

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

Hostel Base in New York City

$166mFY2010

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

0

8

15

23

30

New York Los AngelesSan FranciscoWashington DC Miami Boston 0

1.0

2.0

3.0

4.0

No. Active Hostels No. Tourists per Hostel (M)No. of Hostels per Million Tourists

0

27.5

55.0

82.5

110.0

London Berlin Sydney Lisbon New York0

0.1

0.2

0.3

0.4

No. Active Hostels No. Tourists per Hostel (Millions)

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%

Key Trends• New Hostels have opened in the cities

shown below, enabling these high levels of growth.

• San Francisco: 2 new Hostels opened up with a combined 275 beds.

• Washington DC: 4 new Hostels opened up adding approximately 170 new beds

• Las Vegas: 5 new Hostels totaling 424 beds

-­‐20.0

-­‐10.0

0

10.0

20.0

30.0

40.0

2008 2009 1010YTD  2011

Hostel  booking  growth  NYC

Hostel Bookings Growth: New York City vs. other US cities

-­‐15.00

15.0

30.0

45.0

60.0

New YorkSan FranciscoBoston Los Angeles MiamiWashington DC

2009 2010YTD  2011

Thank You!Questions?