Building a $400M Hostel Empire: From Airbnb to Hawaiian Hostels

Radical Hospitality Show

After a chance encounter with a real estate agent, Michael Russell and Nathan St Cyr run two of the highest ranked hostels on the Hawaiian islands. After owning multiple Air BNB short-term rentals, they decided to transition into the big leagues - building out a team and infrastructure to scale their currently $30M portfolio in Hawaii a $400M hostel empire across the US.
To learn more about their real estate playbook, see their accountability tool here: https://www.hotelinvestorplaybook.com/p/accountability-tool/
00:00:00:00 - Welcome and Introduction
Nathan and Michael's journey from real estate investors to hostel operators. The unique $30 million portfolio they’ve built and their ambitious goal to grow a $400 million hospitality company.

00:00:55:14 - Hostel Transformation – $800K to $8M
How they turned an $800K hostel purchase into an $8M valuation through strategic planning during the COVID-19 downturn and leveraging timing and opportunities.

00:06:06:01 - Building the Perfect Partnership
Insights into the complementary roles within their partnership. Nathan’s visionary leadership paired with Michael’s operational expertise, and how that synergy helps them scale effectively.

00:39:36:14 - Designing Hostels for Community and Experience
How intentional design fosters guest interaction and enhances the hostel experience, with examples like smaller kitchens and centralized common areas to encourage socialization.

00:47:00:08 - Scaling Hospitality with Passion and Strategy
Their reflections on the growing demand for community-driven experiences, lessons from the unique stays event, and the future of experiential lodging.

Connect with Zeke Freeman:
Instagram: @zekefreeman_rootarchitecture and @rootarchitecture
YouTube: @rootarchitecture
Facebook: @RootArchitectureandDevelopment
LinkedIn: Zeke Freeman
X/Twitter: @zfreemanroot
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