One of the defining travel trends of the year, the Poshtel is combining the luxury of a hotel with the price tag of a hostel.


What is a Poshtel?

Poshtels, a blend of ‘posh’ and ‘hostel’, is a hospitality product that combines the style and price point of a boutique hotel with the operating cost structure of a hostel. Poshtels deliver an elevated experience for guests, through the use of modern and luxurious aesthetics, and high-tech facilities. The product is the result of the growing number of intrepid travellers who are focused on experiential living and meeting new people – a shift from typical hospitality products.

Whilst offering dorms, poshtels also provide private rooms with ensuite bathrooms and even penthouse suites. They have a unique FF&E set up that distinguishes themselves from hostels and brings them in line with that of a boutique hotel. Additionally, the operating model keeps costs down for operators, enabling them to operate more beds to maximise ADR without significantly impacting occupancy.


Why choose a Poshtel?

For many, travelling is an opportunity to experience the culture of a city and they want their accommodation to reflect that. Cities such as Lisbon, Amsterdam and Prague have seen the rise of poshtels because of the design and ambience of the city. The design concept is a large attraction for travellers, the Poshtel is not only stylish but remains affordable. 44% of millennials emphasise the importance of hostel décor when deciding where to stay, Dormitories and bunk beds are still on offer, but have been upgraded with privacy curtains, sturdier frames etc to modernise and elevate the hostel experience. Additionally, the communal areas still offer a social aspect to staying at a Poshtel, just like a traditional hostel.

The communal area, hostel atmosphere and affordability are the main attractions for consumers. However, what really draws in consumers is the elevated experience, with a well thought out interior that reflects the city and the type of traveller who wants more from their accommodation.

For operators poshtels are an appealing prospect because of the operating model. It keeps costs down whilst still attracting consumers with a boutique theme. As a relatively new market that is relatively undersupplied compared to other hospitality products, many existing hostels are being upgraded with a significant amount of new stock also being created.

Who uses Poshtels?

The primary consumer market for Poshtels are millennials, who want to travel affordably but in luxury. They want their accommodation to be unique rather than stay with a mainstream brand. This represents the shift away from tried and tested hospitality products to the alternatives markets where consumers can experience luxury at an affordable price.

The ‘flashpacker’ is someone who can afford to spend more on accommodation and travel, and subsequently are attracted to Poshtels. These new type of travellers are typically professionals, varying in age who are taking breaks from their career to go backpacking/travelling.

Couples are also an important consumer market; they have more combined income than single travellers so can afford to splurge on accommodation. In Europe, couples account for 12% of hostel guests and 35-40% of guests are over 30. Couples still want social interaction but value privacy, something Poshtels offer. Whilst hotels offer privacy, many travellers want a social element to their stay, where they can interact with other travellers, learn about where to eat, what to see and where to go. According to a Princeton Survey, 58% of millennial are willing to travel alone, and 47% of older generations would as well. This is why poshtels are so popular, because they provide both privacy and the opportunity to socialise with likeminded travellers.

Poshtel Brands

Companies such as Generator and St Christopher’s Inn have taken advantage of this growing trend for boutique hostels, creating unique Poshtels. Generator has an event coordinator at each of their properties, organising events that showcase the city and local culture. By providing this type of service, guests no longer see their accommodation as somewhere to sleep, but rather a venue for socialising and entertainment. Generator want to create a “whole new dimension of cool, social travel accommodation and public spaces” to become the world leader in Poshtels. St Christopher’s Inn focuses on well-designed rooms that meet the needs of the guest, becoming the first UK capsule hostel. All their hostels have frequent events held in their bars and coordinated by hostel staff to ensure that guests experience the city with locals.

Where are Poshtels?

Operators are currently focused on popular youth traveller destinations such as East Asia and European cities like Amsterdam, Barcelona and Berlin.

The idea of Poshtels is growing in the UK with the rise of staycations. Barclays’ Staycation Report revealed that 31% of domestic holidaymakers plan to spend more holiday time in the UK than they previously would, and 52% of British young adults want to spend more of their holiday time in this country. The UK is becoming a target country for the Poshtels as the Hospitality businesses are fast to adjust to this increase.

Hostelworld revealed its top destinations for backpackers in 2019, with 31% being European countries and tropical, sunny destinations firm favourites. The list was compiled with destinations that saw the largest growth in bookings. All of the destinations offer backpackers the chance to explore old towns, sandy white beaches and experience rich cultures.

For more information on Poshtels, please contact the below:

Max Thorne

+44 7768 617995


Narup Chana 

+44 7407 385694