Nathan St Cyr is the co-founder of Howzit Hostels, a fast-growing hospitality brand based in the Hawaiian Islands. Within three years, Howzit Hostels earned the 2024 award for the number one small hostel in North America. With two current locations totaling approximately 140 beds, Nathan and his partner are on a mission to scale to 400 beds in Hawaii and 4,000 beds across North America—all while elevating the hostel experience into a modern, community-focused hospitality model.
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Key Takeaways
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Nathan originally trained in multifamily investing but pivoted to hostels after uncovering a major market gap in the U.S. hostel space.
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Howzit Hostels focuses on elevating the guest experience with boutique design, community engagement, and Instagram-worthy moments.
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The hostel model allows for multiple revenue levers through room configuration, occupancy flexibility, and curated guest experiences.
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Their approach targets the Gen Z traveler, who craves connection, shared spaces, and social currency through experiences.
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Success comes from understanding your avatar, hiring expert operators, and being fully committed to your vision.
Topics
From Multifamily to Hospitality Pivot
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Started with multifamily training, searching for apartment deals in Hawaii.
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First property search introduced the idea of hostels, which led to a deep dive into the business model.
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Discovered that hostels offered a more flexible, high-margin opportunity than traditional apartment investing in their market.
What Is a Hostel Today?
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Challenges the outdated U.S. perception of hostels as cheap or dirty backpacker lodging.
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Focuses on community-based experiences with boutique design, common spaces, guided activities, and both shared and private rooms.
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Targets modern travelers who value shared experiences over isolation.
Creating a Scalable, Passion-Driven Asset
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Hostels allow room configurations that multiply income potential—such as converting a single hotel room into a shared six-bed space.
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Hostel occupancy is measured per bed, allowing for higher flexibility and revenue optimization.
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Deep understanding of their target audience (Gen Z) shapes branding, amenities, and experiences.
Mindset, Mentorship, and Execution
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Emphasizes hiring experts to validate business plans and fill skill gaps, including European hostel consultants and hospitality designers.
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Stresses the importance of passion, perseverance, and the willingness to go “all in” on your vision.
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Leverages lessons from a background in sales leadership, focusing on rejection as a temporary obstacle and belief as the driving force.
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Round of Insights
Failure that set Nathan up for success: Early struggles in sales and a challenging first property purchase taught Nathan that belief, persistence, and mindset outlast temporary setbacks.
Digital or mobile resource: Social Wi-Fi—automates mid-stay guest feedback and channels five-star reviews directly to Google while flagging issues for in-house resolution.
Book recommendation: Psycho-Cybernetics by Maxwell Maltz – a game-changing book on mindset, the subconscious, and unlocking your potential (despite the intimidating title).
Daily habit: Morning and evening meditation with visualization to align mindset and focus—Nathan believes 80% of success is mindset, 20% is execution.
#1 insight for running a successful hostel: Culture is everything. Build a company culture where the right people want to work, and your business will thrive.
Favorite restaurant in Maui, HI: Nuka.
Next Steps
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Follow Nathan and explore the Howzit Hostels journey at HowzitHostels.com
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Listen to Nathan’s podcast, Hotel Investor Playbook, for deeper insights into hospitality investing
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Consider the unique opportunities in hostel and hospitality investing, especially for passion-driven entrepreneurs
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