Competition & Financials

At Collective Hospitality, we create experiences for our guests through the operation of three distinct brands.

SWOT Analysis

Business model that can grow fast using our centralized system to control all operations. Our plug-and-play model facilitates our organized, methodical expansion.
Low-cost back office operations centralized in Thailand reduces labor manning costs and labor shortages found in more developed countries.
Successful track record of mergers & acquisitions of independent hostels & hostel groups.
Keen focus on creating unforgettable experiences for young travelers.
High level of customer satisfaction among new and returning customers.
Proven three-tiered business model that maximizes revenue streams and profits. Sell a bed, sell F&B and sell tours. Our model has 3x the revenue that a traditional hostel would have.
Highly skilled leadership team with experience in running hotels, F&B and hostels.
Major shareholder has more than 30 years of experience in acquiring, rebranding, repositioning and creating value in hotels and resorts in 7Southeast Asia

Research and data in hostels is far less sophisticated compared to other asset classes such as hotels, offices and residential buildings.
Many hostel acquisition targets don’t have licenses nor basic fire/life safety systems.
Lack of transparency in competitive data can lead to weak forecasting and higher risk of missed opportunities. Consolidation will help to build advanced business intelligence systems.
Most institutional investors have yet to recognize the profit potential of the hostel business.
Current source markets are Europeans and Americans, which are still bouncing back from the pandemic.

Lack of branding and institutionalization of the industry provides a fantastic opportunity for industry consolidation.
Post-pandemic landscape presents an attractive opportunity for buyers with sufficient funding to acquire small chains, independent hostels and distressed hostels at deep discounts.
New market makeup provides the opportunity to become the largest hostel operator in the world with world-class distribution platforms and operating systems.
Consolidation leads to competitiveness compared to other operators through economies- of-scale and use of data to forecast business.
Post-pandemic pent-up demand among 18- to-25-year-old customer segment to travel, explore and party. Providing safe, fun hostels and guest experiences.
Opportunity to provide a branded chain hostel experience that can be leveraged across all of our hostels by creating a hostel route and cross-selling packages through multiple CH hostels. This drives our bed rate and occupancy rate in our branded hostels.
• Branded hostels generate higher rates for beds than unbranded properties.

In a post-pandemic world, the business might take longer to recover.
Competitors might copy this growth strategy, which can pose a threat to CH. The key is to be the first mover.
Growing recognition of the hostel business model by major hotel brands such as Marriott, Accor and Hilton. This also presents a threat as this could potentially increase the number of players in the industry, eating up market share.
Cheap hotel pricing in a post-pandemic hotel landscape is a competitor to our hostel model.
Mid-scale and budget hotels are the direct competitors of hostels in Asia. CH needs to communicate their unique selling points to target customers to differentiate themselves from conventional hotels.

Why Us?

Diversified Revenue Streams

Unlike the standard hostel model, which is in the business of selling beds, we at Collective Hospitality look at ourselves as a full-service hospitality business. By operating our own high-traffic and high-profit F&B and our own low-cost tours and adventures, we are able to flip the standard model on its head and tap into revenue streams that most operators never even knew were possible. We don’t just sell a bed to our customer – we sell an experience.

The below model shows how Collective Hospitality’s increased revenue from F&B and Tours impacts yearly estimated Gross Revenue compared to
a typical hostel. These figures are also conservative estimates given that they assume we are charging the same bed rate, when in actuality we as a group have
the ability to leverage our brand recognition and demand to charge higher rates than our competitors. We can also drop the rates lower than competitors to drive up
occupancy and increase the F&B and Tour revenue streams further.

	Standard Hostel Model	% of TL. Rev	Collective Hospitality	% of TL. Rev
Table Beds	100		100
Occupancy	80%		80%
Average Daily Rate	$8.06		$8.06

est. Yearly Room Revenue	$235,483.87	75%	$235,483.87	30%
est. Yearly F&B Revenue	$62,795.70	20%	$274,731.18	35%
est. Yearly Tour Revenue	$15,698.92	5%	$274,731.18	35%

est. Gross revenue	$313,978.49	100%	$784,946.23	100%
Minus est. Expenses	$235,483.87	75%	$588,709.67	75%

est. Gross Profit	$78,494.62	25%	$196,236.56	25%

Our Hostel Competition

Collective Hospitality has grown and opened aggressively, surpassing that of competitors in the rapidly growing market. We have managed to navigate the market and grow with success, effectively closing this gap

This is due to our:

Strong core brand identities.
Pillars of service and operational expertise.
Superior business model leveraging our F&B and Adventure offerings as our primary revenue streams, unlike others.
Long-term leases under an an asset-light model, which provides the ability to grow fast in the current challenging climate to finance hospitality assets.
Strong systems and procedures that are centralized, consolidated, easily replicated and built to incorporate new acquisitions.

Presence in Southeast Asia

Brand	Locations	# Of Hotels	Asset Model
Collective Hospitality	Thailand, Indonesia, Cambodia, Laos, Vietnam	32	Asset Light /No Debt

Global Hostel Market

Brand	Launch Year	Locations	# Of Hotels	Asset Model
Selina	2015	London, UK	89	Acquire / Debt
A&O Hostels	2000	Berlin, Germany	39	Acquire / Debt
Zostel*	2013	Jaipur, India	37	Franchise
Collective Hospitality	2012	Singapore	32	Asset Light /No Debt
Meininger	1999	Berlin, Germany	30	Acquire / Debt
St. Christopher’s Inn	1995	London, UK	26	Acquire / Debt
Hostel One	-	Europe	17	Acquire / Debt
Generator	1995	London, UK	15	Acquire / Debt
Remaining Independent Hostels	-	World Wide	16,222	-

Comparative Analysis

Let’s use the comparison between the established hotel industry and the burgeoning hostel industry in order to understand the consolidation opportunity fully. While there was once only a few branded hotels in existence, the market is now oversaturated.

Of the estimated 48,000 hotels globally, approximately 24,000 of them are branded. The opportunity has come and gone in the hotel industry, inviting investors to look for an untapped asset class.

Cue the hostel industry. The hotel industry’s oversaturation is vastly different from the hostel landscape. While there are an estimated 16,507 owned hostels in the world, there are only 5-10 operators that have clear branding across multiple operations and outlets, totaling approximately 317 branded hostels.

This means that while 54% of hotel rooms in the world are operated by brands, ONLY 1.72% of hostels are branded, which presents an undeniable advantage to any operator with the capabilities, ambition and foresight to capitalize on this opportunity.

Use Of Proceeds

1. Acquire large market players in mainly Asia and the Pacific.

Acquire large market players in mainly Asia and the Pacific.
Rebrand/expand footprint in that market with various distinguished
brands

2. Working Capital (USD $1m)

Talent acquisition brands
Improve back of house operations
Rebrand/expand footprint in that market with various brands

3. Headquarters & IT Systems (USD $500k)

Enhance operational and IT systems to increase productivity, business analysis and data analysis to ensure accurate
forecasting and understanding of consumer trends
Expand head office Operations and Marketing teams in parallel with growth