Case Study · Bayside House

One fitout.

42% more revenue. Same beds. Same guests. Zero renovation. St Kilda, Melbourne · 113 beds · 4-star rated
$50 +43%
Nightly rate per bed
was $35
70% +40%
Occupancy rate
was 50%
8 +2 nights
Average stay
was 6 nights
+42%
Revenue increase
within 90 days

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.

A great location held back by the wrong beds.

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The existing bunk beds were outdated.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 beds weren't just a comfort issue. They were a revenue ceiling.

Premium pods. No renovation. No downtime.

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.

No full renovation. No months of closures. Just a targeted, high-impact transformation of the rooms that guests actually sleep in.

How we did it.

  • 01 Floor plan review. A detailed assessment of each dorm room to understand layout constraints, bed configurations, and spacing requirements.
  • 02 Customised yield report. For each room, we developed a yield report that maximised the number of beds the property could facilitate within their permit.
  • 03 Pod bed design. A customised pod bed design inclusive of colour, accessories, and lighting, built to the property's brand and guest expectations.
  • 04 3D render and sample. Development of a full 3D render and physical pod bed sample for approval before production.
  • 05 Full production and installation. 50 pods (100 beds) manufactured, shipped, warehoused, assembled, tested and tagged. End to end.
The Results

The numbers don't lie.

Before After
Average nightly rate per dorm bed $35 $50
Occupancy 50% 70%
Average length of stay 6 nights 8 nights
Increased revenue 42%
Guest Reviews

What guests say
about the pods.

Verified Google Reviews · 5.0
R
Ryan Monson
a month ago on Google
5/5

"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."

Rooms 5.0 Service 5.0 Location 5.0 Highlights Great value
V
Vittoria Protti
a week ago on Google
5/5

"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)."

Rooms 5.0 Service 5.0 Location 5.0
L
Lewis
Verified stay on Booking.com
10/10

"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."

Source Booking.com Score 10/10
"

"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 Kilda
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