They turned a fixer-upper into a thriving $100,000-a-year niche business: a hostel

When Serena Ryan And Justin Walsh When they first came up with the idea of ​​launching a hostel in the White Mountains of New Hampshire, their goal was twofold: first, to live in an environment they had fallen in love with; and two, filling an essential need in the hiking community.

Serena, 37, had been reading a memoir about the Appalachian Trail when she heard there was a shortage of clean lodging for people in Woodstock, NH. It was an area that the then couple knew well. Serena traveled there every weekend, packed her bags and loaded them into the car on Thursday evening like clockwork.

Justin, 40, was also hooked on the White Mountains, but because he worked in construction, he didn’t think it was possible to find a full-time job there.

“I didn’t have any dream of owning a hostel until Serena suggested it,” he says. “But I really wanted to live in the White Mountains.”

He immediately went online and the first house he found for sale checked a lot of boxes. “It was the first place I saw and the only place I looked at,” he says.

Building a business mountainside

Built in 1890, the house was 3,590 square feet and needed some work. Fortunately, a quirk in the area’s laws allowed them to avoid a lot of red tape.

The city had no zoning regulations, so they didn’t have to file a petition to get the house commercialized.

“That’s unheard of to have a city without zoning,” says Ryan.

Additionally, it was the last house in town connected to city water and sewer, saving them the astronomical cost of installing a septic tank to meet the needs of a hotel-like property.

Ryan and Walsh foreclosed on the property in October 2014 and purchased it for $290,000 using a home loan, depreciating 20% ​​or $58,000. They took out a personal line of credit to pay for $60,000 in renovations, converting the five-bedroom, seven-bathroom house into a 30-bed hostel.

The largest expense was adding a fire suppression system, which cost about $25,000. They also learned that they would need to install a second water line from the street to the property, something that any accommodation for sixteen or more people would need. However, the province granted them a time buffer and allowed them to add that they had been open for a year and not only had the money, but also knew the business was viable.

The big reward

After purchasing the house, Serena, Justin and a group of friends spent every weekend for the next six months renovating the property. Both Serena and Justin had full-time jobs that they didn’t want to give up, so balancing it all proved taxing.

Serena was also working to publicize the opening and ensure that the building they named would be sold Notch hostelwould be in the 2015 AWOL, the guidebook Appalachian Trail hikers relied on at the time; now hikers are turning to the Farout app to find accommodation, clean water and other support.

Her efforts worked. It opened in July 2015 and had 100% occupancy. In the run-up to the big day, they had even received a few people, because the need for beds was so great.

“We had no idea we would be so busy so quickly,” says Ryan. In their first year they made over $100,000.

“It felt great for us,” says Ryan. “We were just trying to live for free in the White Mountains.”

‘Making money was never the goal’

The hostel has grown over the years and now employs two full-time staff and two seasonal part-timers. Walsh and Ryan separated and she bought him out after the divorce. Now Ryan runs the company.

Their profits are rising, but so are their expenses.

“Most people who look for a hostel do so because they don’t want to spend money on a hotel,” she says. “We try to keep prices at an amount that our customer base can afford and that seems fair, but also covers costs such as gas mileage for the daily shuttle to pick people up at the route.”

Notch Hostel is doing well, especially for a hostel, but Ryan is quick to point out that this is not a get-rich investment scheme.

“For many hostels, their finances are more like those of a nonprofit,” she says. “If you want to make a million dollars, don’t start a hostel in the White Mountains.”

But for Ryan, “making money was never the goal.”

In addition to serving hikers and other outdoor enthusiasts, the vision has expanded to focus on community.

“It’s about creating a welcoming, inclusive community, which people desperately need in 2026,” she says. “We do a lot of work that focuses on racial justice and equity in the outdoors.”

Notch strives to be a safe space for BIPOC and LGBTQ+ guests. They offer “promo codes for guests from communities that have experienced historical or current economic disenfranchisement.” Members of groups such as Outdoor Afro, Latino Outdoors, Brown Girls Climb and other BIPOC affinity organizations are invited to contact the hostel for a promotional code.

In 2020, Ryan founded Summits in solidaritya nonprofit organization committed to advancing justice and equality for BIPOC, amplifying their voices in the outdoor space, and supporting anti-oppression and anti-racist efforts. One of the group’s largest events is its annual Hike-A-Thon, where participants hike to raise money for BIPOC-led justice work.

Notch offers free or discounted retreats for groups, especially those in marginalized communities, who are looking for retreats but cannot afford standard rates. The hostel also serves as a community event space where people can learn about outdoor recreation in the White Mountains.

“I don’t think we ever imagined how much of a community center it is,” Ryan says. “That’s what a hostel is: a community space.”