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Case Study · Bayside House Numbers pulled directly from Bayside's Cloudbeds data

One fitout.

93% more revenue per bed. Cheapest rates in the area. Zero renovation. St Kilda, Melbourne · 78 beds · 4.9-star rated
81% +117%
Occupancy rate
was 37%
$25 +93%
Revenue per bed, per night
was $13.16, now $25.41
$31 -12% by design
Nightly rate, smart priced
cheapest hostel in the area
+93%
Revenue increase per bed
paid back within the first season
Overview

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 choose Bayside first and come back.

The Problem

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The existing bunk beds were outdated.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.
The Nest Effect

Watch it happen.

Occupancy, month by month.

2025 against 2026, same months, same beds. The dotted line is when the pods went in. Touch the bars.

20252026

 

Monthly average occupancy across 78 beds. Pulled directly from Bayside's Cloudbeds data, January to July.

Revenue per bed, per night.

Occupancy times nightly rate. What each bed actually earned, each month, while staying the cheapest hostel in the area. Touch the bars.

20252026

 

April to July average: $13.16 a night (2025) to $25.41 (2026). Up 93%.

The Solution

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.

Nest 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.
Process

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. Pods for all 78 beds manufactured, shipped, warehoused, assembled, tested and tagged. End to end.
What Happened

Occupancy more than doubled. At the cheapest rate in the area.

The pods went in through March 2026. From April, the same rooms that ran at 37% occupancy the winter before were running at 81%, and they held above 77% every single month through the depths of winter.

Here is the part that matters. Bayside prides itself on being the most affordable hostel in the area. Smart pricing kept it the cheapest bed in the postcode, and the average nightly rate actually fell 12%, from $35.74 to $31.39. No rate rise. No renovation. Guests simply picked the pods at the bottom of the market, and kept picking them.

Revenue per available bed went from $13.16 to $25.41 a night. Up 93%, while charging less than everyone else. On actual booking data, the fitout paid for itself within the first season.

Winter 2025: 37% full at $35.74 a night. Winter 2026: 81% full at $31.39. The beds did the selling.
The Results

The numbers don't lie.

Before After
Occupancy 37% 81%
Revenue per bed, per night $13.16 $25.41
Average nightly rate, smart priced to stay the cheapest in the area $35.74 $31.39
Google rating 4.5 4.9
Fitout paid back, on actual booking data within the first season
Increased revenue per bed 93%
Run your own numbers in the Yield Calculator
Guest Reviews

What guests say
about the pods.

Bayside's Google rating has climbed from 4.5 to 4.9 since the pods went in.

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. The house was full, guests stayed longer, and the reviews kept climbing. And we were still the cheapest beds in the area."

Property Manager, Bayside House · St Kilda
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