Do you own a large property that is failing to make you much money? Is it located in a tourist hot spot? If you can answer ‘yes’ to both of those questions, you could be in an excellent position to take advantage of a gap in the market!
According to a recent news report I have just read, the demand for ‘no frills’ budget travel accommodation is on the rise and one innovative hostel company has recognised the potential business opportunity and set up a branded hostel franchise. The company is looking to form partnerships with owners of large, under performing properties in order to provide safe, cheap, no frills accommodation to backpackers and budget travellers.
New hostels in locations like London have proven to be extremely successful as the credit crunch bites and travellers look to economise on their trips. Hostel accommodation has also had an image overhaul and modern hostels are nothing like those of days gone by: they are bright and stylish, and designed to appeal to travellers of all ages and from all walks of life.
Sadly I do not have any properties in my portfolio that fit the bill, but if I did, I can certainly see the money making potential behind such a venture and I think this is a great way to make a large run down property work to your advantage. Instead of turning it into dingy bedsits, it makes far more sense to tap into the budget travel market, and with the hostel franchise company offering a money-back guarantee if the business fails, you can’t lose.
