Brief information about hostels as a form of running a hotel business. The material touches on some issues of this type of business activity (what it is, what kind of real estate can be used, theses on organizing living conditions).
The hostel is an economy class hotel where you can stay and spend the night for a small fee. The main difference from a hotel is that they pay not for renting a room, but directly for the beds. On average, rooms can accommodate from four to ten guests at a time.
For minimal money, hostels provide the necessary level of comfort to guests, which is why they are attractive to the vast majority of the population of our vast Motherland. Many tourists and business travelers absolutely do not need expensive spacious rooms with additional services that they do not use. It is enough for these people to provide a comfortable and clean place to sleep, give them the opportunity to take a shower, visit the toilet and clean themselves up, charging a “democratic” fee for everything.
The most profitable placement of such hotels is in station areas, as well as in historical and business centers of cities - not only wealthy people travel and go on business trips. However, the cost of real estate and land in the listed places is the highest, so opening a new inexpensive hotel there will not be easy. It is much easier to choose a quieter and cheaper area for its placement. The main thing is that it is not “in the middle of nowhere” and has a well-functioning transport infrastructure.
Business benefits of opening a hostel
- A very promising business - as already noted, the consumer audience for these services is extremely large. Quite a lot of people do not rent inexpensive rooms for one simple reason - there are either catastrophically few of them or none at all.
- The number of potential hostel clients will not decrease over time; even the expected increase in income cannot lead to this, since no one has canceled healthy practicality. Business travelers and budget travelers will always choose this option.
- A fairly low level of competition is especially important. In addition, in our country, the powers that be prefer to earn “quick money”, which will allow them to avoid a conflict of interest in a losing situation. If you exclude the bureaucratic red tape that cannot be avoided when officially opening any business, then no one will care about you.
- The relatively low level of costs for interior furnishings and decoration minimizes financial losses in case of failure, since in our case the fixed capital is real estate, which generally increases in price over time.
Real estate
The first thing you should pay attention to is the impossibility of calculating any average amount of investment per bed. Even a child understands that the price of land, real estate, services of builders and other specialists differ quite greatly by region. Therefore, it makes sense to discuss the issue only in general terms.
The main expenses come from the construction or purchase of the building itself where the hostel is planned to be located. This is where you need to look for opportunities to save money. Of course, the ideal option is a long-term lease with the right of subsequent purchase. But in most large cities in Russia, this scenario is considered fantastic: either everything has been dismantled long ago, or the cost of rent is too high. But it’s still worth trying your luck in the recommended direction.
If construction is inevitable, then it is best to erect a medium or small building with the possibility of its further expansion.
Mini-hostels in residential high-rise buildings
The best option is to convert 2-3 apartments into a hostel on the first or second floor of a residential building. If you are the owner of such real estate, then the task is extremely simplified.
Compliance with legal standards when opening a mini-hostel in a city apartment
It is clear that such a business cannot be hidden up your sleeve, so it is necessary to follow the letter of the law. You will not receive permission to open a hostel if the property is registered in the housing stock. Only apartments on the first floor or second floor can be removed from there, if the same non-residential premises are located under the latter. According to the third chapter of the Housing Code of the Russian Federation No. 188-F3, which came into force in 2005, in order to carry out the procedure for removing an apartment from the housing stock, its owner must provide:
- application for transfer of premises;
- title documents:
- technical description of the apartment and its plan;
- floor plan of the house;
- an apartment redevelopment project drawn up in accordance with the norms of the law.
In addition to compliance with the legal norms set out in the third chapter of the RF Housing Code No. 188-F3, it is necessary to take into account the requirements of other regulatory legal acts of the constituent entities of the Russian Federation. However, decisions of local authorities should not contradict the main document regulating the removal of apartments from the housing stock.
Examples of space planning in hostels
List of basic requirements for living conditions in such mini-hotels:
- Good soundproofing - people pay money to get a good night's sleep. Therefore, you should definitely pay attention to this parameter when choosing windows and doors. The original internal walls in apartments conduct sound well, so be sure to eliminate this drawback.
- The presence of a small lounge with a TV and a kitchen means that visitors do not immediately fall asleep; many of them will want to have a snack, drink tea and watch the news or a movie. For obvious reasons, doing this in the rooms is not very convenient.
- Providing wireless Internet access - a wi-fi zone in the hostel is simply necessary, since the bulk of visitors are young people, and they cannot live without the Internet.
- Air conditioning of bedrooms - an attempt to save money on split systems immediately relegates the hostel to the category of second-rate. Considering the number of people simultaneously present in one room, it is impossible to do without climate control equipment.
- Bathrooms are equipped at the rate of: one sink for 6 visitors, a toilet for 12 people and a shower for 15 guests.
- The sleeping area (mattress) should be 1.9 x 0.8 meters, and the density of their placement should be determined based on the norm - 5 m² per person. It is recommended to install bunk beds to ensure sufficient space in the rooms.
- The rooms should be equipped with lockable metal drawers or a storage room should be equipped at the reception desk.
The finishing of walls and floors should be carried out taking into account increased operational loads. If you don’t want the hostel to turn into a shabby inn in 2-3 years, pay special attention to the choice of building materials and plumbing. There is no need to overpay money for absolutely inappropriate technical and aesthetic bells and whistles, but saving on quality would be extremely unwise - the stingy pays twice.
The same applies to purchasing furniture - budget factory products will not last half the time promised by the manufacturers. An exception is made only for metal bunk beds, which must be equipped with mattresses of normal quality. It is recommended to order all other cabinet furniture with warranty service. The last point will force manufacturers to use high-quality and wear-resistant components in its production.
Promotion methods
It is almost impossible to establish this type of business without an advertising campaign. Moreover, bright signs and the help of word of mouth will clearly not be enough here. Advertisements in the local press will also be of little use. The most effective is the promotion of hotel services via the Internet and by placing posters with business cards at train stations and other places of mass concentration of city guests.
Close relationships with travel agencies can also attract customers to the hostel. Due to the popularity of economy tours, these organizations are constantly looking for those who are able to provide inexpensive hotel services. Moreover, the owners of new budget hotels have priority for obvious reasons: the most favorable prices at the initial stage, fresh renovations and new furniture, as well as better customer service.
Currently, the hotel business is developing at a tremendous pace and is of increased interest not only among experienced entrepreneurs, but also ordinary people who want to work for themselves, develop professionally, achieve new heights and successes, do what they love and not depend in any way on the employer . However, opening a hotel requires not only specific knowledge, but also significant material investments, which not everyone can afford. The most suitable option for a person of average income is to invest in a so-called hostel. But at the same time, many questions arise with the idea: how to open a hostel, what documents will be required, what is the competition in the market, will this activity bring profit, etc. Of course, any business involves a certain risk. Therefore, before leaving your main job and attempting to start your own business, it is necessary to collect as much information as possible about the upcoming activity, carry out basic calculations, weigh the pros and cons, and only then make a final decision.
What is a hostel?
Before you seriously think about how to open a hostel, you need to clearly understand what it is. In simple words, we can say that a hostel is a mini-hotel, usually occupying a small area and specializing in providing inexpensive temporary housing to tourists, young people, students, migrant workers and all interested people who cannot afford to pay for hotel rooms or hotels. Hostels are characterized by a block or corridor system of rooms arranged for accommodation from 3 to 20 people. On each floor or block there is a shared toilet and bath (or shower), as well as a kitchen where guests can prepare their own food at any time. It is possible to find a hostel suitable for everyone anywhere in the city. Photos of buildings and rooms can be viewed in advertising brochures and in our article.
Initial capital required to open a hostel
The cost of opening a hostel depends on many factors. For example, those who are interested in how to open a hostel in Moscow should take into account that this will not be easy to do in the capital. This is explained, firstly, by the fact that competition in this area is simply enormous. Secondly, this is not a place for entrepreneurs with limited financial resources, since buying or renting premises will cost a pretty penny. A similar situation is typical for St. Petersburg, although inexpensive hostels in St. Petersburg are more common than in Moscow. Things are much simpler in small cities and towns, where buying/renting premises will cost an order of magnitude cheaper. However, it should be taken into account that the profit in this case will be less.
Having made preliminary calculations, we can come to the conclusion that at the initial stage, to open a hostel, a businessman will need an average of 1.5-2 million rubles (rent of premises, repairs, purchase of furniture and equipment, paperwork, employee salaries, tax deductions). If business is done correctly, the profitability of the hostel will be 50% or more.
Factors to consider when opening a hostel
In order to answer the question of how to open a hostel, it is necessary to take into account a number of important factors that can significantly affect the development of the project: strengths and weaknesses, existing opportunities and, accordingly, threats and risks. Among the strengths, it should be noted: the relatively low threshold required to enter the market (from 350 thousand rubles), a simplified taxation system. The weaknesses are the profitability and payback period of the project. As for opportunities, in this sense it is necessary to emphasize that opening a hostel is a very promising direction in the hotel business, which provides an opportunity to develop and consolidate a strong position in the market. With all this, we should not forget that risks are inevitable. Please take into account that you are far from the only one who is thinking about how to open a hostel; competition is growing every day (the market is growing by 45% annually). In addition, talent, entrepreneurial spirit, determination and, of course, stress resistance are of great importance. A business is built gradually, and one cannot count on immediate success.
What is required for legal registration of a hostel?
Despite the fact that many people direct their attention to the hotel business, only a few really think about how to open a hostel. That is why at present this is a rather promising direction with a real possibility of promotion. To open a hostel, no special permits are required. This is explained by the fact that in the Russian Federation hotel activities are not subject to licensing. All that is required is to register an individual entrepreneur or LLC in the prescribed manner, purchase a cash register and register it with the tax office, obtain the appropriate permits from the fire service and SES.
How to choose the right room?
Opening a hostel begins with finding suitable premises. The hostel can be located either in an apartment or in a private house. It all depends on the desire of the entrepreneur and his financial capabilities. Not everyone can afford to rent or even more so buy a house. It’s much easier for those who are thinking about how to open a hostel in an apartment. Things are even better for those who already own premises suitable for human habitation. In this case, all that remains is to make high-quality repairs, equip the premises, hire staff and get to work. The premises for the hostel should not be less than 150-200 m2. Otherwise, there is nothing to talk about benefits. The central streets of cities are not a prerequisite for opening a good and in demand hostel. Reviews from visitors are the best confirmation of this. Maintaining hostels located on the outskirts of the city is much cheaper, which, in turn, affects the cost of living for visitors. Both entrepreneurs and guests benefit.
The most suitable furniture for a hostel
When planning start-up capital for opening a hostel, it is worth considering the amount that will have to be spent on purchasing furniture and equipment. The most important element is the purchase of beds. They should be single, preferably two-tier (to save space) and as comfortable as possible. Entrepreneurs who know a lot about the hotel business do not skimp and prefer to order even orthopedic mattresses for their hostels. Naturally, this is an additional investment, but rest assured that it will soon pay off in full. The cost of one fully equipped two-story bed averages 15-20 thousand rubles. The number of beds required depends solely on the area of the room.
In addition to beds, you will need to purchase cabinets, shelving, bedside tables, electrical and household appliances. Do not skimp on quality, otherwise in the future you will have to spend money again on repairs or replacement of damaged equipment or equipment.
Recruitment
Once the premises have been selected, renovated and equipped, recruitment should begin. At a minimum, two administrators will be required to provide services to guests around the clock. If you assume that the working day will last 8 hours, you will need to hire three reception staff. In addition, you cannot do without service personnel: cleaners, maids, electricians, security. The main requirements for hostel employees are: integrity, friendliness, resistance to stress, ability to work in a team, responsibility, etc.
How to properly organize the activities of a hostel?
A huge number of questions and problems with organizing activities arise especially for those businessmen who are thinking about how to open a hostel in Moscow, St. Petersburg and other large cities. The main reason for this is that the competition is fierce and in order for people to choose a particular hostel, its owner has to fight for it. The success of a hostel largely depends on the proper organization of activities. Therefore, first of all, you need to determine the target audience to target. For example, young people, students and tourists from the provinces are most likely to prefer inexpensive overnight accommodation. For them, comfort is not as important as cost. If your hostel is designed for such a contingent, then you should save on the furnishings, but at the same time make reduced prices for accommodation. If you are planning to open a hostel for business people, then you will have to allocate a place where the conference room will be located, arrange a separate room in which you can hold various seminars, trainings, business meetings, etc. The cost of living in such a hostel will be much more expensive. However, regardless of what segment of the population the hostel is designed for, service must be at the highest level and meet the needs of the guests.
Advertising campaign and hostel opening
Before opening a hostel, marketers recommend conducting a broad advertising campaign. The more people know about the existence of the hostel, the higher the flow of guests will be. Order advertising brochures from any printing house. They should be printed on high-quality glossy paper. Come up with a catchy title and describe the advantages of the hostel. Leaflets can be distributed on city streets, at the entrance to shopping centers, near hotels and hotels, at train stations, at universities and in places where students gather.
In addition, advertising can be easily placed on special websites, where future visitors can not only get acquainted with basic information about the hostel, but also book a room. Various social networks and blogs are also good platforms for advertising.
conclusions
Opening a hostel should be approached very responsibly. Having learned how to open a hostel in Moscow or any other city in Russia, first evaluate your capabilities, think carefully about whether this business is right for you, identify all the pros and cons, and only then make the final decision. There is a lot of work to be done, so in the next few years you will have to completely forget about weekends and vacations. If you are confident in yourself and your abilities, then go ahead and start taking specific actions. With desire and diligence, success will definitely come.
Today, more and more employees who were hired yesterday are striving to open their own business. Whatever the risks, the profit that you can earn from your business every month will be able to cover the costs and, most importantly, it will give you an incomparable feeling of freedom and independence from the fickle mood of your superiors or the machinations of your workmates.
The hostel as a business is quite viable!
Today, one of the most promising types of business is the organization of hostels. Their relevance is growing day by day, since tens of millions of people go on trips every year, and not everyone and not always have the money for really expensive and luxurious hotels.
Economy class tourists are happy to resort to hostels. What are they? These are hotels that are inexpensive and look very much like hostels. Anyone who considers a hostel as a business is primarily attracted to it by its low costs, even at the initial stage of organization. But the profit can be quite significant due to the constant flow of people wanting to move into them. 
Background
By the way, hostels were first invented in Germany. Representatives of the hotel business around the world liked the idea of the Germans so much that their experience was adopted and began to be implemented in various countries. Today there are about forty million people who are fans of hostels. In this type of hotel there must be a sleeping place, a kitchen for cooking, a bathroom and a bathroom or shower. At the same time, you don’t need to spend a lot on design.
The most important thing in this matter is cleanliness, comfort and neatness. Very often, rooms are equipped with safes for storing personal belongings of clients. The rooms have six or eight beds. Hostel furniture is also not particularly luxurious. As a rule, these are single strong beds made of wood, reliable and practical. 
How much will it cost you to open a hostel?
In most cases, the main costs go to paying rent or purchasing real estate. Ideally, you should purchase premises closer to the city center or its historical attractions. Remember that your guests will stay with you for 1-2 days. During this time, it is very important for them to see as many interesting buildings or amazing places as possible, so they will give preference primarily to those hostels that are located in close proximity to their route.
Thus, it turns out that the hostel’s profitability is quite high. Having resolved the issue with the premises, you will not experience any particular difficulties with other organizational issues. As for the staff, an administrator and a cleaning lady will be needed here. The first one can work in the 24/7 mode, that is, you will need 4 people. Their average salary is approximately 20 thousand rubles. 
Additional business
Also, as an additional income, you can organize the preparation and delivery of breakfasts for your clients. You can equip a kitchen for about 80 thousand rubles. A separate shower and toilet can cost about the same amount. Don't neglect Wi-Fi yet. Its presence is very important, especially for foreigners. 
And, most importantly, since you will have strangers in your rooms, make sure that an appropriate agreement is drawn up with the security agency. A well-thought-out scheme of ready-made excursion options, cycling and walking routes, and picturesque places in the surrounding area would also be useful. Before you start organizing your own business, take the trouble to draw up a detailed hostel business plan with a financial model. This will help you in the correct distribution of your available funds and speed up your profit. 
Advantages of a hostel over a hotel
Even from the position of a person inexperienced in entrepreneurship, the advantages of this particular type of hotel over a hotel are obvious: a large number of clients attracted thanks to cheap services; also, to implement the idea in Russia, you can use, in general, any house or spacious apartment (recently it has become especially popular implement hostels in old buildings).
Among other things, you don’t have to worry about the traditionally high level of service (needed by ordinary hotels). As we have already noted, you don’t need large funds to open a business here. It is quite possible that you will not even have to take out a loan - you will be able to get by with your own funds. The most important thing is to plan everything correctly. Do not try to give an exact answer to the question of how to open a hostel, the business plan of which has not been fully worked out or thought out. Otherwise, you will simply lose money.
How many years can it take to recoup the investment?
By the way, in continuation of the conversation about the advantages of economy class hotels. It is worth noting that today in Western Europe their number has long exceeded 5000. In Russia there are still few such economical hotels. However, this area of business is developing at a very fast pace. And it is quite possible that in 5-10 years our country will become one of the leaders in this market (in any case, all the prerequisites for this exist). Today the situation is the opposite.
The niche is almost completely free. This, in turn, creates fertile ground. The profitability of a hostel in Russia can be very, very high. The main thing here is proper organization (we won’t get tired of repeating this). A hostel business plan must be thought out to the smallest detail. You must clearly understand for yourself what funds need to be invested and what benefits you will get from it. Only in this case can success be predicted. By the way, you shouldn’t hesitate with this business either. If you decide, do everything quickly, while there are no major players on the market.
How to open a hostel - step-by-step plan: necessary documents, advertising promotion methods, equipment, detailed calculations and payback periods.
Capital investments in business: from 500,000 rubles
Hostel payback period: 1-2 years
Not so long ago, few people knew about this type of budget hotel, such as a hostel.
The practice, so common in Europe, has begun to gain popularity in Russia over the past 5-7 years.
The opportunity to live in a comfortable environment with everything you need for little money has aroused great demand among the population.
Therefore, many entrepreneurs began to wonder, how to open a hostel.
Some of them have used this method of budget overnight stays and appreciated the benefits.
They have determined for themselves what they want the hostel to be like, they know many secrets and tricks, but they have absolutely no understanding of the organizational side of the issue.
While others are experienced entrepreneurs who know how to profitably invest in real estate.
But organizing a hostel requires a more sincere approach than the ability to count expenses.
What documents are needed to open a hostel?
Paperwork to open a hostel is something that scares first-time owners.
There's really no need to worry.
Yes, registering a business is a long and nerve-wracking process.
However, you can delegate the collection of papers to specialists for a fee.
The only thing you definitely shouldn’t do is open a hostel without permission.
Such a move is fraught with fines, problems and complete failure of the hostel idea.
To legally open a hostel, you will need the following documents:
- or LLC;
- tax registration certificate;
- a document confirming ownership of the premises;
- permission to operate the hostel based on the results of an inspection by the fire inspectorate and SES;
- agreement for waste removal with the relevant organization.
The above list is a basis that can be “overgrown” with additional papers, depending on the current legal requirements for business.
You should carefully check the relevance of the data before registering the hostel.
It’s better to play it safe at the start than to have problems with regulatory authorities in the future.
We analyze the market before opening a hostel
The mere fact that a hostel as a business must have demand is not enough to organize a business.It is important to analyze the niche in which you are going to open a hostel.
To do this, pay attention to competitors in the region and the general trend of hostel development.
Now there are more than 5,000 hostels and establishments of a similar format in the country.
Their number has doubled over the past 2 years, which indicates an accelerated pace of niche development and high customer demand.
It is noteworthy that half of the hostels are concentrated in two cities - St. Petersburg and Moscow.
Thus, to open your own hostel in one of them, you will have to “fight” with competitors.
At the same time, the prospects for business development in big cities are much better.
If we analyze the formats of hostel organization, the leader is premises with medium capacity (30-50 guests).
This business option is beneficial for entrepreneurs due to relatively modest capital investments and quick payback.
What are the risks of the idea of opening a hostel?
An idea like opening a hostel in Moscow or St. Petersburg has risks not only because of high competition...Any mini-hotel may encounter circumstances that could ruin its business.
Entrepreneurs must analyze potential risks before opening a hostel and think through ways to minimize them.
| Risk | Why is it dangerous for business? | How to avoid? |
|---|---|---|
| All sorts of emergencies in the hostel | Emergency situations can cause harm to the hostel property or its residents. In extreme cases, lead to suspension of work. | Hostel property must be insured. Provide employees with training on how to behave in emergency situations. It is important to equip the premises with fire extinguishing systems. |
| Seasonal fluctuations in demand | Income and business profitability are falling. | It is important to be able to interest a hostel client during a recession. Think over an advertising campaign, introduce special offers. |
| Poor location of the hostel | Audience coverage is falling. Along with it comes the profitability of the hostel. | The problem needs to be “cut in the bud” even before the hostel opens. Pay attention to preliminary location analysis. Assess its prospects. |
| Low qualifications of employees | Loss of clients, emergence of conflict situations. | You need to hire people in person. You shouldn’t skimp on training hostel workers. |
How to open your own hostel and promote it: advertising methods
It is important to understand not only how to open your own hostel according to all the rules of the law, but also how you will promote it to the masses.And the service sector is those areas that cannot do without a marketing strategy.
You should immediately realize that there is no such thing as high-quality, cheap advertising.
There are rare exceptions, but you shouldn't rely on them.
Consider the 3 main channels for promoting hostel services:
Website and promotion of the hostel on the Internet.
A modern business cannot do without its own website.
Don’t skimp and order its creation from specialists.
After all, the electronic page will be the face of the hostel.
The website itself does not attract customers so actively, but rather is an important image attribute.
To ensure that guests find you, use SEO optimization, contextual and banner advertising.
This pleasure is not cheap, but the effect is noticeable.
Another important element of the marketing policy of modern business.
Most of the hostel visitors are students, young people, and budget tourists.
They are attracted not just by the opportunity to spend the night, but by the spirit that reigns in hostels.
It’s worth opening the hostel’s Facebook and VKontakte pages.
This will allow you to share news, hold promotions, collect feedback from guests and create your own special atmosphere that you will want to plunge into.
Hotel and hostel booking sites.
Few people do not know about the existence of resources for online booking of accommodation.
Hostels that are not there lose up to 90% of their potential target audience.
Just listen to this number!
But the registration process is simple and, as a rule, free.
How to choose a building to open a hostel?
To choose a location and decide how to open a hostel in non-residential premises or apartment, first select a format.There are three main types:
A large hostel that can accommodate more than 100 guests.
In Russia, this format is not in demand due to the lack of demand and the high financial threshold for entry.
If you are still interested in this hostel option, you will need to rent a large non-residential premises.
To ensure fullness, you need to work on concluding agreements with companies that can hold seminars or conferences.
Hostel with medium capacity (30-50 guests).
The most in demand. To organize them, they usually buy 2-3 apartments located on the floor and combine them.
This is enough to equip a hostel with a kitchen, two bathrooms, a hall and 5-6 bedrooms.
In an ordinary apartment you can set up a hostel for 10-15 guests.
The mini-format hostel is chosen by those who like to relax in a cozy home environment.
This option requires the least investment, but also pays off over a long period of time.
The peculiarity of such hostels is that the price of a bed can be 10-15% higher than that of competitors.
And this will be justified, because the level of comfort in mini-hostels is noticeably higher.
- advantage – the hostel is close to the city center;
- It’s good if there are interesting sights nearby the hostel;
- It is important for guests that there is a good transport connection near the hostel;
- It should be easy for visitors to find the hostel, so a noticeable sign and signs are needed.
Hostel as a business: necessary equipment
Those who have stayed in hostels more than once know very well what they should be equipped with.
If your knowledge is limited to your own apartment and expensive hotels, here is an indicative list of the necessary equipment:
| Equipment | Description | Price (in rub.) |
|---|---|---|
| Furniture | Usually, hostels buy wooden furniture. From the basics, you will need: a wardrobe in the hallway, a large shelf for shoes, beds and bedside tables in the bedrooms, a table and chairs in the kitchen, sofas and armchairs in the rest room. | 100 000 |
| Equipment in the hostel | The list of necessary equipment depends on what services will be provided at the hostel. The minimum set includes: Wi-Fi router, washing machine, iron, refrigerator and microwave, plasma TV, storage rooms for valuables. | 90 000 |
| Other things for the hostel | Do not forget that you have to provide guests with textile accessories. Experience shows that for each bed in a hostel you will need 3 sets of bed linen. You will quickly see that such a reserve is justified. A sign of good manners is to provide clients with towels and disposable slippers. | 80 000 |
| Creating comfort | As already mentioned, a hostel is not just a “bedroom”. This is an atmospheric place, which for many is associated with a special atmosphere. A good hostel has its own distinctive style, which is created by the interior details. These could be interesting pillows, panels, a stand with books, or special lamps. | 30 000 |
Schedule plan for how to open a hostel from scratch
To plan how to open a hostel from scratch, it is worth making a calendar plan.It will allow you to track whether all stages of the organization are going according to the planned schedule.
| Stages of opening a hostel | 1 month | 2 months | 3 months |
|---|---|---|---|
| Registration of individual entrepreneur or LLC | |||
| Conducting marketing research | |||
| Conclusion of a lease agreement | |||
| Repair and redevelopment of premises | |||
| Searching for staff for a hostel | |||
| Obtaining permits from SES and fire inspection | |||
| Planning an advertising campaign | |||
| Purchase of equipment and furniture | |||
| Internet connection | |||
| Installation of equipment in the hostel | |||
| Interior decoration | |||
| Start of work of the hostel |
It is worth noting that in a hostel business plan, the calendar plan should be supplied not only with deadlines, but also with an indication of the performers and responsible persons.
Recruitment of staff for a hostel
In order to open a hostel in an apartment or non-residential premises, you will need to assemble a team of professionals who will work there.Family members are often involved in cases.
It is important to hire people from “outside” only with work experience.
A big plus is knowledge of foreign languages.
The number of staff depends on the size of the hostel.
Often the level of cleanliness is the weak point of hostels.
To avoid problems, sign a contract with us for periodic general cleaning.
Also, do not forget about washing, and enter into an agreement with a dry cleaner to provide this service.
How much does it cost to open a hostel?
“The most serious risk in business around the world is the risk of being ineffective.”
Mikhail Prokhorov
So from organizational issues we came to the question, how much does it cost to open a hostel?
Regular investments in the operation of the hostel
We must not forget that a business needs not only start-up investments.To operate a hostel you will need to invest a certain amount monthly.
Payback periods and profitability of a hostel as a business
Due to its price advantage over expensive hotels, the hostel pays for itself faster and requires less investment.
Dry calculations show that 100% occupancy of the hostel will bring about 115,000 rubles per month.
However, at the beginning of the hostel’s operation and in the low season, such an indicator cannot be achieved.
It is possible to achieve 75-85% of hostel profitability with the active use of advertising methods.
With this indicator, it is possible to recoup the investment in 1-2 years.
How to make good money by opening your own hostel, you will learn from the video:
A hostel is a place for a budget holiday, but not a poor one.
Guests should not see shabby doors, broken locks, mold or a non-functioning electric kettle.
Keep an eye on the details in the hostel.
Many people stay in a hostel just for the experience.
Develop a special hostel design style.
It could be a Soviet Union theme or a psychedelic creative space.
Many guests are tourists.
Enter additional services in the hostel: excursions, the ability to call an inexpensive taxi, free city maps.
Thinking through how to open a hostel, You should only manage personal funds, not credit.
But when business takes off, you can contact the bank or investors to get money to develop the business.
In this case, the risks are lower, and it is easier to obtain consent from sponsors.
After you promote one point, you should think about opening new hostels.
Useful article? Don't miss new ones!
Enter your email and receive new articles by email