
The main entrance for the Point Reyes Hostel/NPS
The National Park Service recently issued a prospectus soliciting proposals for operation of the hostel at Point Reyes National Seashore in California. The hostel is the only lodging facility within the 71,000-acre national seashore that was established under legislation signed by President John Kennedy in 1962.
The Point Reyes hostel is comprised of three buildings: an 1860s historic structure that includes the office, a manager’s apartment, and a rental room; a bunkhouse with two bunkrooms; and a building with four private rooms. Shared kitchens are in both the historic structure and the building with private rooms. Guests in the bunk room have access to the kitchen in the historic building. Shared living space is in each of the three buildings. The hostel currently provides 56 beds and has an occupancy rate of approximately 50 percent.
The 10-year contract requires that the concessionaire provide lodging and Internet service, while allowing, but not requiring, vending sales, minor retail sales, laundry facilities, interpretive services, hosting of special events, and payphones (remember those?). A minimum franchise fee of 1.4 percent of revenues is required, although bidders can choose to offer a higher percentage in an effort to improve their chance of winning the contract.
The National Park Service estimates the concessionaire will require an initial investment of approximately $170,000, half of which will be for personal property including furniture, fixtures, and equipment. Other initial outlays include working capital and start-up expenses for recruitment and staff training.
NPS estimated revenues for 2024 range from $504,000 and $557,000, nearly all of which flow from lodging. The National Park Service will allow the concessionaire to set market-based rates. A fee will be permitted for wifi access, which is expected to bring in approximately $10,000. Additional opportunities for revenues include merchandise sales (who wouldn’t want a Point Reyes hostel T-shirt?), vending, and interpretive services.
The contract’s effective date for management of the hostel is October 17, 2023. Formal proposals must be received by the National Park Service by noon PT on April 7.
David and Kay Scott are authors of “Exploring the Oregon Trail” (Globe Pequot).