They Turned a Fixer-Upper Into a Thriving $100K/Year Niche Business: A Hostel

When Serena Ryan and Justin Walsh first had the idea to launch a hostel in the White Mountains of New Hampshire, their goal was twofold: one, to live in an environment they had fallen in love with; and two, to fulfill a vital need in the hiking community.

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

Justin, 40, was also hooked on the White Mountains, but, working construction, didn’t think it possible to find full-time employment there.

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

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

Building a business mountainside

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

The town lacked any zoning laws, so they didn’t have to petition to get the home zoned commercial.

“That’s unheard of to have a town with no zoning,” Ryan says.

Moreover, it was the last house in town to be connected to town water and sewage, which saved them the astronomical cost of installing a septic to meet the needs of a hotel-like property.

Ryan and Walsh closed on the property in October 2014, buying it for $290,000 using a residential home loan, putting down 20%, or $58,000. They took out a personal line of credit to pay for $60,000 in renovations, transforming the five-bedroom, seven-bath home into a 30-bed hostel.

The biggest expense was adding a fire-suppression system, costing around $25,000. They also learned they had to install a second water line from the street to the property, which any accommodation housing 16 or more people needs. However, the county granted them a time buffer, letting them add that after they’d been open for a year and not only had the money, but knew the business was viable.

The big pay off 

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

Serena also was working to spread word of the opening, making sure the property, which they named the Notch Hostel, would be in the 2015 AWOL, the guidebook that Appalachian Trail thru-hikers relied on at the time; now hikers turn to the Farout app to find accommodations, clean water, and other support.

Her efforts worked. The opened in July 2015 and had 100% occupancy. They’d even hosted a few folks leading up to the big day, as the need for beds was so great.

“We had no idea we would be that busy that quickly,” Ryan says. In their first year, they grossed upward of $100,000.

“For us, that felt awesome,” 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 workers, and two seasonal part-timers. Walsh and Ryan have separated, and she bought him out after the divorce. Now, Ryan runs the business.

Their profits are rising, but so are expenses.

“Most people who are seeking out hostels do so because they don’t want to spend money on a hotel,” she says. “We are trying to keep the pricing at a number that our clientele can afford and feels fair but also covers expenses like the gas to run the daily shuttle to pick people up at the trail.”

Notch Hostel does well, especially for a hostel, but Ryan is quick to point out this isn’t a get-rich investment plan.

“A lot of hostels—their finances look more like those of a nonprofit,” she says. “If you’re looking 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 the 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 focusing on racial justice and outdoor equity.”

Notch is committed to being a safe space for BIPOC and LGBTQ+ guests. They offer “promo codes for guests from communities that have experienced historic or present-day 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 promo code.

In 2020, Ryan founded Summits in Solidarity, a nonprofit that works to foster justice and equity for BIPOC, amplify their voices in outdoor spaces and support anti-oppression and anti-racist efforts. One of the group’s biggest events is the 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, looking for retreats but who can’t 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 would have imagined just how much of a community hub it is,” Ryan says. “That’s what a hostel is—a community space.”