The stated aim in Cox & Kings' recent takeover of Meininger was to create a leading hotel group in the combined hostel and hotel market. The commercial hybrid product is still a relatively new concept and investors should become more aware of this operational model as it expands into new markets. The flexibility and success of the European hostel market and the lack of any real benefit to the 'urban traveller' of hotels and motels beyond discounted prices, have convinced US billionaire investor Ronald Burkle to develop a group of hostel resorts to accommodate international visitors, and capture latent domestic demand. Through the Sydell Group's experience in lifestyle hotels, the Roman & Williams-designed hostels include bars and swimming pools as well as shared rooms and facilities to provide 'innovative design, a local eating and drinking experience, and a comfortable community atmosphere at an affordable price.' Until now, the USA has trailed Europe in the development of commercial hostels, but this move has introduced the model to the wider investment community.

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