The hospitality giant had been watching the sector, studying where it might be able to make its mark before it hit on, what it thought, was the right approach.
"The market has changed and for us it was a time just to see that this kind of market is going more and more professional with bigger brands, with real concepts and we decided to get into it," François Leclerc, vice president of brand and operations at Jo&Joe, told Skift.
The likes of Accor and now Hilton, think the hostel market is ripe for disruption. These are not scrappy upstarts but rather the established hotel companies looking to use their scale to pick up a different type of consumer.
Hostels certainly aren't a new invention; they have been have been around for more than a century but up until fairly recently they weren't part of the wider hospitality conversation. Sure, as a business model in hospitality they've been evolving in their own way.
Way back when, It was those people passionate about traveling who decided to lease their own building, sort out a supply of bunks, and throw open their doors. It wasn't necessarily about making a truck load of cash, but more about bringing people together.
Big hoteliers and investors hadn't taken much notice, favoring other areas such as vacation rentals.