January 2026 Update
I’ve had a few folks tell me recently that they love the newsletter, especially that I share all the numbers. I do like hearing that. This newsletter is partly self-serving, since it forces me to think monthly about what actually happened in the business. But beyond that, I like letting people see behind the curtain.
I’ve had a few folks tell me recently that they love the newsletter, especially that I share all the numbers. I do like hearing that. This newsletter is partly self-serving, since it forces me to think monthly about what actually happened in the business. But beyond that, I like letting people see behind the curtain. It helps people feel part of the team in a way and hopefully encourages them to spread the word. So, I’ll say this: thanks for reading, and I’ll keep writing.
With that in mind, the January numbers weren’t good. But more on that later.
I mentioned it briefly, but I spent a week down in Playa del Carmen, Mexico, and for that time (plus a few days on either side), the hostel was closed. Since it’s so dead around town, I don’t lose that much revenue, and the revenue I do lose I treat as an investment in my sanity and mental health. It lets me have fun and relax (I got SCUBA certified) but also gives me time to think big picture without worrying about who’s checking out or whether the bathrooms have been cleaned. I come back energized, and I’m excited about the growth (and challenges) ahead in 2026.
I did a review of my 2025 P&L with my AI CFO. As silly as that sounds, it’s really helpful, and I’d recommend doing something similar for small business owners who don’t have a full C-suite. We had a great chat, and it helped me gut-check blind spots I may have. This was the robot’s two-part summary of the business’s financial health:
A real hostel business that can produce positive operating cash flow, with a debt structure that overwhelms it.
“Overwhelms” feels a bit personal, although I do instruct my robot to shoot me straight. Regardless, it does a good job of summarizing how I’m thinking about the year ahead. It sounds simple, and I’ve mentioned it before, but toward the end of this year I’ll renew the terms on my loan and, ideally, get a friendlier rate. Of course, there are lots of macro things I can’t control. So how I’m thinking about 2026 is: how do I make our financial situation as attractive as possible, so my lender has more faith in what we’re doing?
Main goal: increase occupancy (mind-blowing, right?). Rolled up in that, there are endless options for what to focus on, prioritize, and spend time on. I try to narrow it down to just a few big levers that make other things easier. The core focus: raise awareness with groups of travelers who would love what we do if they knew we existed. Easier said than done, but I have some ideas.
Redirect some marketing spend into the micro-influencer arena. Not crazy excited about this, but if I can find the right match and audience, it has potential. It also lets me use an asset (lodging) as partial barter to hopefully cut down on overall spend.
Develop core out-of-town partnerships. I’ve done great building local partnerships that both help my guests and turn into referral arms. I have close to zero of those outside Asheville, so the goal is to change that. I’m actually writing this from Boone, which is my first of (hopefully) a few stops around the Southeast, spreading rack cards and good vibes, and finding businesses around town, like fly-fishing guides or outdoor gear shops, who may send customers down to Asheville.
Improve visual content. I do a lot more paid marketing on Google than Meta, mainly because it’s much easier for my brain to create text ads than visual ads. Not an excuse, though, so I’m going to focus on doing more myself and, more importantly, leaning on people who are more talented than me to get the eye-catching content that helps. What does that look like? Micro-influencers, work-trades where people aren’t just housekeepers but also content creators, and doing a paid content day with friends to finally capture ideas that have sat on my to-do list for six months.
Expand focus into the outdoor industry. These are the guests that fit the environment we’re trying to build, but they’re also more likely to come back to the area again and again. Hikers, mountain bikers, and paddlers don’t do it once and check it off a list. They’re always looking for more opportunities, and we should be their home away from home. To that end, I joined the Outdoor Business Alliance and the Waypoint Resilience Cohort, both aimed at expanding our partnership network in the outdoor industry. We’re also really excited about Taylor’s Wave opening, and I’m hoping to work with both the Town of Woodfin and Explore Asheville to position us as the best place to stay.
Sounds like a lot, and it is, but these should be investments of time and money that continue to compound. So how will I track success (other than “watch number go up”)? Start getting real conversions from social media ads, improve social engagement, lock down at least one strong referral partner in each key market, and maintain or grow our high level of repeat guests.
January Stats
So yeah, January numbers: not good. Oddly enough, last January may have been a little inflated from people coming to town for Helene recovery efforts. We also closed for a couple more days than last year (and closing felt scarier last year that soon after Helene). On top of that, two snow/ice storms on back-to-back weekends led to cancellations that definitely hurt the bottom line, especially with the timing around MLK weekend. Nothing we can do about weather in hindsight.
One takeaway is that next January I may lean even harder into whole-house rentals, even if that means dropping prices drastically. I also want to get more deliberate about which customer segments are actually coming to town in Winter. It’s definitely slow, but Asheville vacation-rental occupancy is still in the low 30s, so demand is down, not zero.
January stats
- Occupancy rate: 6.67% (-62.0% MoM, -46.4% YoY)
- Total Guests: 16 (-68.0% MoM, -48.0% YoY)
- Total Guest Nights: 35 (-71.0% MoM, -46.0% YoY)
- Revenue: $4,254 (-41.7% MoM, -12.9% YoY)
January Marketing Overview
The nursing and winter landing pages (and related ads) didn’t really work. Still glad I built them out, as we’ll get some natural traffic through SEO. But the ads (as they stand now) are probably too broad and we’re getting clicks that don’t really want to stay in a hostel. Pausing them for now. We did get one conversion on the Whole House Rental ad, and those are nice because they’re big dollar amounts.
Google Ads — Hostel Keywords
- Clickthrough Rate: 11.5%
- Cost Per Click: $2.71
- Daily Spend: $16.80
Google Ads — Generic Lodging Search Terms [now paused]
- Clickthrough Rate: 3.8%
- Cost Per Click: $3.55
- Daily Spend: $3.74
Google Ads — Travel Nursing Search Terms [now paused]
- Clickthrough Rate: 14.3%
- Cost Per Click: $6.31
- Daily Spend: $6.90
Google Ads — Winter/Ski Lodging Search Terms
- Clickthrough Rate: 3.7%
- Cost Per Click: $1.93
- Daily Spend: $5.64
Google Ads — Whole House Rental Search Terms
- Clickthrough Rate: 9.4%
- Cost Per Click: $1.66
- Daily Spend: $4.93
Want to help me spread the word? Help me raise awareness? Tell one open-minded friend that we exist. If you get em here, we’ll be sure they have a great time.