[header] How to set up a hostel [title] Choose a location for your hostel. [substeps] You should open a hostel in a place with a high volume of budget travelers passing through. Make sure it is easily accessible--travelers may not know their way around the area--and able to compete with others, if any, hostels in the region. 
Consider the cost of purchasing a building, paying for permits, buying beds, linens, and kitchenware, and any marketing expenses. [title] Establish an initial investment for your hostel that will allow you to operate for at least a year.