Small Independent Hostel in a Leased Building

Backpackers, solo travellers, cyclists, hikers, working holiday visitors and budget-minded domestic travellers.

Nightly rate per dorm bed or private room, sold through your own website and booking platforms. Extras can include breakfast, bike or gear rental, laundry and local tours on commission.

• Friendly, welcoming manner with guests from many countries
• Organising cleaning and bookings
• Handling problems calmly, including noise and late arrivals

• Zoning and building or fire code rules for shared sleeping rooms, which differ by municipality and province
• Accommodation licensing, health inspection and any provincial tourism registration (Quebec has its own classification rules, so check with the provincial regulator)
• Commercial general liability and property insurance suited to guest accommodation, and landlord consent to hostel use
• Seasonality: winter or off-peak months can be quiet in many areas, so plan cash flow
• GST/HST registration, any municipal accommodation tax, and WCB/WSIB coverage once you hire staff

Startup costs are typically estimated at around $40,000 to $150,000, depending on the building, lease terms, furnishing of dorms and private rooms, and shared kitchen and common areas. Get landlord consent for hostel use before you spend.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on bed numbers, location and season. Winter or off-peak months can be quiet in many areas, so plan your cash flow. These are estimates, not guarantees.

Check zoning and building or fire code rules for shared sleeping rooms, plus accommodation licensing, health inspection and provincial tourism registration (Quebec has its own classification rules). Also check insurance, GST/HST, any municipal accommodation tax, and WCB/WSIB once you hire.