a rich guy opening nice 40-rooms hotel a few blocks from Green Mango, how compete?

[Green Mango]

After a year of operations and doing well for Green Mango Hostel & Inn in the Philippines, a rich businessman buys up 4 houses a few blocks away but in a more strategic location, tore down the 4 houses, and is now completing a nice 40-rooms hotel. What suggestions on how we can compete? Our hostel has dorm rooms, plus private rooms that are smaller than hotel rooms, if this rich businessman opens in early 2010 and brings his room prices down, what are ways we can better compete and still do well? Any suggestions?

We're trying to improve the amenities & facilities of Green Mango right now, but our number of rooms are limited, and we only have 2 dorm rooms...

Merry Christmas & thanks for any advices!

[aboriginalhostel]

I wouldn't worry that much... I suppose he didn't invest such amount to compete with a hostel? if he did, he'd be such idiot, you don't have to wait too much to see him bankrupt!

[Green Mango]

Thanks very much! hahaha... I was also wondering why the rich guy did that... or maybe he saw that there are no hotels in the area, after seeing our small but cozy hostel...

Warmest best wishes, Happy New Year!