Year 2 Comes to a Close
September was the month of milestones. Our 2-year hostel on the 23rd and Hurricane Helene's anniversary just four days later. Which means that, for the foreseeable future, September will always be the month of milestones. An odd combination of highs and lows, of celebration and sadness.
September was the month of milestones. Our 2-year hostel on the 23rd and Hurricane Helene's anniversary just four days later. Which means that, for the foreseeable future, September will always be the month of milestones. An odd combination of highs and lows, of celebration and sadness.
When I think back to our anniversary last year, I was so excited. We had a great weekend full of celebratory events and, despite the hangover, I was so fired up for our first real October - our first real leaf season, and the upcoming growth of Year 2. Then, 4 days later, everything changed. 4 feet of water in the parking lot and backyard. No power. No water. I lost contact with a volunteer staying with us for 5 days, and feared the worst.
I don't write all this just to relive the trauma all over again. There's been plenty of that. But to highlight the mental whiplash of being a small business owner at that time. The drastic shift. One week I was planning for growth; the next, I was processing refunds and figuring out how to fill up our toilets.
It took a little while but the business finally started to show signs of life. The first 3 months of 2025 positively comped YoY. We grew MoM in 5 of the first 6 months of the year. We attracted several whole house rentals that brought in big chunks of revenue when we needed them. Tourists slowly started to come back. July and August actually felt summer-ish? And hopefully, this October will be similar to the one we were all excited about in 2024.
That said, I'll always view Year 2 of the business as a sort of lost year. The year I burned through a lot of reserves. But also the year we learned a lot about resilience. The year we grew (more on that below) in the face of tremendous headwinds. The year where the local small business community really got each other's backs. The year we stayed open as a business when many didn't.
Since I started this venture, I've always wanted everything to move faster. And this past year served as a healthy reminder that it's a long game, and it surely won't be the last speed bump that is completely out of my control. But what I can control is our product. How people feel when they walk in the door and how we enhance their experience before they leave. That's still working. And I'll continue to think creatively on how to introduce new people to the idea of hosteling.
2 very different days for our backyard…
Year 2 Stats
It's not good enough long-term, but it's still nice to see growth in a year with some serious macro-uncertainty (and with plenty of room for more growth). We saw an increase in total income, a slight decrease in total expenses. Both good things. The lower expenses is a bit misleading because our lender graciously delayed 4 debt payments immediately after the storm. Regardless, it's mildly positive. Going forward the biggest lever will be refinancing our debt towards the end of 2026. I'd like to think by this time next year, the business will be much healthier, and I'll have 3 years of real financials to show (as opposed to a pretty business plan) and that, combined with lower national interest rates **fingers crossed**, will lead to much more palatable debt service payments (and cash flow!)
HostelWorld Conference
Just a week ago, I got back from a week-long trip to Spain centered around a HostelWorld Conference in Seville (shoutout to my team who kept the place chugging along while I was gone). While the conference material is helpful, the real value comes from meeting other hostel owners, hearing how their business is doing, and learning little nuggets that I can bring back home and put to work here. I returned with a whole list of potential ideas for events to host, tools to build, experiments to run, etc.
Should be a fun year 3 :-)