The Rise of the Luxury Hostel

Outside the United States, young professionals found ideal accommodations that aren’t as dingy and questionable as international hostels but also aren’t as pricey as chain hotel rooms. The “luxury hostel” made its way onto the radars of this growing subset of travelers seeking affordable places to stay but with slightly more amenities than the traditional hostel offers.

As luxury hostels and guesthouses grew in popularity abroad, they somewhat stagnated in the United States. But a new wave of establishments plans to change the domestic travel scene by introducing higher-end lodging for the slightly younger traveler.

One such place is the Native Hostel in Austin, Texas. Touting itself as an “experiential hostel,” the refurbished railway workers’ hotel has been redecorated and completely revamped so it isn’t just a place to hang your hat between sightseeing ventures or hostel-sponsored bar crawls. The space facilitates socialization and includes a live-music venue, a bar, an art museum, a café and a co-working space for working travelers. Dorm-style rooms can welcome up to six people in one room, and start at $49 per night.

With an increasing number of 20- to 35-year-olds allocating income toward travel pursuits, the travel industry has sought to capitalize on their disposable incomes and slightly more refined tastes and expectations.