St Kilda · Melbourne
Bayside House is a 113 bed, Google-rated 4-star hostel in the iconic suburb of St Kilda, surrounded by the best of what Melbourne has to offer.
The property offers 4, 6 and 8 bed dorms alongside private rooms, communal spaces and amenities.
Bayside House had the location, the reputation, and the guest flow. What it didn't have was a room offering that matched its potential. Post-COVID, the property found itself stuck. Unable to compete on quality, unable to justify higher rates, and unable to close the gap on newer, better-presented competitors.
The opportunity was clear: the guests were already coming. The question was whether the beds were giving them a reason to pay more and come back.
Globally renowned as a backpacker hub, Bayside House was perfectly positioned to capitalise on the post-COVID travel boom. But its underwhelming room and bed offering was quietly holding the business back.
The existing bunk beds were outdated. Guests felt exposed and uncomfortable. Reviews were inconsistent, pricing power had plateaued, and the property was stuck in a race to the bottom, competing against newer, better-looking properties nearby with no clear way to stand out.
The decision was made to upgrade the dorms to a premium, customised pod bed designed specifically for Bayside House's layout, configuration, and guest profile.
NestAus handled the full process: room assessment, yield optimisation, design, manufacturing, and installation. The property kept running throughout.
Privacy, warm lighting, USB charging, and personal storage.
| Before | After | |
|---|---|---|
| Average nightly rate per dorm bed | $35 | $50 |
| Occupancy | 50% | 70% |
| Average length of stay | 6 nights | 8 nights |
| Increased revenue | — | 42% |
"The place is great, the new pods that they have put in are amazing. They feature great privacy and charging inside the pod. Great Value."
"Fantastic stay! The hostel has clean and comfortable rooms. A big plus is that every bed has its own curtain, which gives you privacy even if you are staying in a shared dorm. The staff is friendly, helpful and available whenever needed. The location is also perfect — very convenient and close to transport (literally 5 min)."
"I love the beds with the curtains — you're in your own little cubby with three different light options, a little lockbox (need a padlock) and shelf."
"We weren't sure what to expect. Within the first month the numbers spoke for themselves. Guests were paying more, staying longer, and leaving better reviews."
Property Manager, Bayside House · St KildaEvery NestAus fitout is designed around your room layout, bed count, and revenue goals. Get a custom quote for your property.
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