Hostel business plan template

Download this hostel business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Find out more

Discover our hostel business plan template

hostel business plan template

Not accustomed to writing business plans? Our hostel business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a hostel in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

Sign up

Template only available to paying subscribers of our online software.
Get a 7-day trial for free.

Edit the hostel business plan template online, or download it

Available in PDF

Just after a little inspiration? Download the business plan template in PDF to print and have a read over it.

Download in Word format

Want to edit your plan on Word? Simply export the hostel business plan template to MS Word (.dox) format.

Tailor it to your own project

Adapt this template to your personal project by changing the written part or the financial forecast in our online business plan software.

Sign up

Template only available to paying subscribers of our online software.
Get a 7-day trial for free.

hostel business plan template content

This template includes a complete business plan, with a financial forecast and the following sections:

  1. Executive summary:
    The executive summary gives the reader a clear and concise overview of your business idea
  2. Company:
    This section lays out the structure of your business, including its location, management team and legal form
  3. Products and services:
    Here, you'll give an overview of the services or products offered by the company
  4. Market analysis:
    The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry and local market (customer profile, hot trends, regulation, competition, etc.)
  1. Strategy:
    This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
  2. Operations:
    This step lays out the company's operational organisation, including the recruitment plan
  3. Financial plan:
    The financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
  4. Appendices:
    This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Sign up

Template only available to paying subscribers of our online software. Get a 7-day trial for free

Hostel business plan template extract

Executive Summary

Business overview

Liverpool Lively Hostel will be a new hostel located on Lark Lane in Liverpool.Liverpool Lively Hostel has been created with the intent of welcoming tourists and groups of friends looking for cheap accommodation in Liverpool city.

Our goal is to create a hostel with a vibrant, friendly and fun-loving vibe - we would like to welcome anyone looking to immerse themselves into Liverpool’s unique culture, whether they be a single traveller or group of friends.

Our hostel, located in a three-storey building on 1 Lark Lane, will have a total capacity of 52 beds in 5 mixed dormitories.

The neighbourhood has strong public transport links, making access to the hostel easy for guests. St Michael’s train station is 8 minutes away on foot, as well as several bus lines - with the number 82 offering a direct trip to Liverpool City Centre in just 20 minutes. Guests can also hire city bikes, with the closest station situated just 2 minutes from the hostel on foot.

Liverpool Lively Hostel is a limited company with a capital of £20,000 and will be managed by Rachel K and Katrina R. Rachel and Katrina share a passion for travel and valuable experience in the hostel industry, having both worked in similar businesses for several years.

Global market

Hostelworld estimates that the hostel industry is currently valued at $5.2 billion in bed revenue and is projected to grow 7-8 per cent year-over-year.

Using data from Hostelworld and several travel agencies across the globe, the founder of HostelHelper believed there to be approximately 15,643 hostels operating worldwide in 2019.

England is said to be the 7th highest European country with the most hostels, boasting 226 hostels.

Phocuswright has also projected that the revenue of the hostel industry will increase by 5.5% per year from now until 2025.

1 of 3

Local market

According to the Global Trends Report 2014, the UK hostel market was estimated to reach £216m by 2018, with a total of 653 hostel outlets by the end of the same year.

Liverpool is a vibrant city with a population of 497,784. Its history, architecture, coastline and welcoming locals make it a place well worth visiting - with VisitBritain recording that the city’s visitor economy is now worth over £4.9 billion.

In 2019, Liverpool welcomed 67.3 million visitors. The demand for use of serviced accommodation within Liverpool has increased by 6% in the last year, with 2.8 million visitors opting to check into hotels and hostels during their stay.

Liverpool hotels saw a 5% rise in weekday occupancy during 2018, bringing its average occupancy up to 81.8%. With average occupancy rates in cities outside of London remaining stagnant at around 76%, Liverpool is significantly above the national standard.

The vast majority of hostel visitors are backpackers. With millennials now accounting for 70% of all hostel travellers, the typical age range of hostel goers is from 18 to 35 years old.

Opting for experiences over luxury, Hostelworld has found that 49% of backpackers consider cheap prices to be a major factor when picking hostel beds to lay their head - especially because only 20% of future travellers will be employed, down 2% from previous years.

Only 13% of backpackers now book rooms via last-minute walk-ins, as the electronic revolution has meant they prefer to book via computer (47%) and mobile apps (55%). This means that online reviews are more important than ever before, with 28% more travellers relying on reviews when seeking out new accommodation than the generations before.

A backpackers budget varies depending on the location and time of the year. The fewer the beds in the room, the more expensive a room. Hostels in London fall around the £15,00 – £25,00 per night mark. In Europe, many travellers pay anywhere between €19 – €44 per night in peak season.

2 of 3

Target Market

We have decided to target two main types of customers:

  • Backpackers and solo travellers: we will accommodate backpackers looking for adventure and fun by offering walking and museum tours, a Beatles tour, pub quiz, social events within our communal lounge (including movie nights), and group dinners.
  • Groups of friends: groups of friends (predominantly millennials) like the idea of visiting new cities on the cheap, and therefore prefer to stay in hostels, where they can meet other young people, but also save money for eating out and checking out what the nightlife has to offer.


We have identified three main competitors near our hostel, all of which are situated close together in Liverpool city centre.

We believe our location, beside the iconic Sefton Park, not only appeals to a different type of clientele looking to explore the lesser known sights of Liverpool, but it will also enable us to avoid frontal confrontation with those players.

Financial Hihglights

The projected sales for year 1 are expected to be £214,690 and we anticipate them to grow to £222,390 in year 2 and £227,803 in year 3.

Based on the current plan the EBITDA should grow from £23,604 in year 1 (with 10.99% of margin) to £27,834 (with 12.52% of margin) in year 2 and should reach £30,559 in year 3 (with 13.41% of margin).

The improvement in EBITDA over the plan is mainly related to the improvement in the occupancy rate, resulting in better absorption of fixed costsin years 2 and 3.

The net operating cash flow is expected to remain positive throughout the plan - reaching £26,761 in year 3.

Our Ask

In total, our initial funding requirement amounts to £150,000. The partners will contribute to £65,000 (43% of the total), and we would like to secure a loan to cover the remaining £85,000.

3 of 3

Sign up

Template only available to paying subscribers of our online software.
Get a 7-day trial for free.

Other business plan templates and resources to discover