Is a hostel a profitable business? How to open a hostel? Why hostels are profitable

Approximate data:

• Net profit - 56,525 rubles
• Payback - A little more than 1 year.

Over the past few years, hostels have become popular in Russia. This is due to the low cost for an acceptable level of comfort. If we compare prices with hotel prices, we can say that hostels are much cheaper. Due to the crisis, the popularity and demand for this type of mini-hotels has only increased. Therefore, budding entrepreneurs are increasingly wondering how to open a hostel.

We will look at a hostel business plan with calculations for a three-room rented apartment.

Market analysis

Today there are more than 5 thousand mini-hotels and hostels operating in Russia. Half of them are located in Moscow and St. Petersburg. In other cities, the potential for this type of business is great. On average, Russian hostels receive about 2.6 million rubles annually as income (not profit!).

Over the past two years, the number of hostels has more than doubled, which indicates the increased attention of entrepreneurs to this type of business and demand from potential clients.

As a rule, hostels are created with a capacity of 10-30 people. Their share is more than 50% of all hostels, in some regions even more. This is due to the relatively low level of investment and high profitability. It is worth noting that over the past 2-3 years, investment in this area. For example, in St. Petersburg this figure has more than doubled, total amount investments have already exceeded 500 million rubles.

Before opening your hostel, you need to analyze the market situation hotel business. This can best be done by collecting data in booking systems. In addition, this information is freely available. For clarity, it is better to compile the information in the form of a table, considering each object separately.

If it is difficult to collect information yourself or there is no time, you can entrust it to freelancers.

There are several ways to open hostels:

• Buying a franchise.
• Opening your own business with the purchase of premises.
• Starting your own business by renting premises.

For most, the third option will seem to be the most acceptable and budget option. This is what will be considered.

It is very important to assess your own level of competitiveness by familiarizing yourself with the services of others hotel enterprises. Competitors will be: hotels, hotels, other hostels, rented apartments (daily rentals). A lower price will help you compete with hotels and hotels, and with other hostels and apartments - the quality of the services provided and some “trick” that will make the establishment memorable and recognizable.

Portrait potential buyer : the main consumers will be representatives of those segments of the population who have average level prosperity. As a rule, these will be tourists, traveling enthusiasts, and young people. If we talk about middle-aged people, they will be ordinary employees who do not have a conservative outlook on life. Over 65% of all students in the world visit more and more places every year. They will be the main clients of the hostel.

SWOT analysis

Opportunity Assessment

You can increase your capabilities by introducing additional services and increasing their level. Increased demand will directly depend on promotional activities.

It is also necessary to take into account the seasonality of demand for hotel services.

The organization will operate 24 hours a day, seven days a week.

Organizational and legal issues:

• Choice OPF of the enterprise. When opening one hostel, it is best to stay at. With further expansion, you can think about registration legal entity, opening an LLC. OKVED codes can be: 55.23 – activities of other places of residence. Or 55.23.5 - activities of other places for temporary residence, not included in other groups. This will depend on the maximum length of stay of clients.
• Registration with the tax office, obtaining a certificate, choosing a tax system. You can start by choosing, as it provides many advantages. One of the following objects can be selected as the tax base: 6% of income or 15% of the difference (income-expenses). In the second case, the rate may vary depending on the region in which the business is registered.
• We also recommend accepting payments from our clients by bank cards. To do this, you need to open a bank account. By the way, we wrote an article about.
• If the hostel opens in an apartment or separate room, no licenses are required.
• Compliance with sanitary standards. In this case, additional documents are not received. However, after some time, the relevant services may come and check. When finishing a room, it is worth obtaining certificates of conformity for the materials used (to avoid possible problems).
• Obtaining a fire inspection report confirming the satisfaction of all norms and standards in the premises. This document guarantees safety not only for visitors, but also for workers. It is mandatory to receive it.
• Concluding a rental agreement for premises.

A few more legal requirements:

• The hostel cannot be located in the basement or on the ground floor.
• When foreign citizens move in, migration records must be kept.
• Redevelopment will require an application to the Housing Inspectorate.

Rented premises: this will be a three-room apartment on the ground floor, preferably with a separate exit. It is advisable that the property has already been transferred to commercial ownership, since this procedure is not easy and lengthy.

Description of service

The actual service is the provision of temporary accommodation. It includes:

• sleeping area;
• kitchen with necessary utensils (including electrical appliances, dishes);
• bathroom (shower, toilet);
• relaxation room (with TV, laptop, game console);
• Wi-Fi;
• use of dryers, washing machine, iron.

Such a range of services will certainly attract large quantity visitors to the hostel.

The order will be placed through the administrator, who accepts applications by phone or online.

Drawing up a marketing plan

One of the main factors in demand for hostel services is advertising. You shouldn’t wait for self-promotion - it will be a very long process. The following strategies should be used:

1. Work with educational institutions(schools, universities). Students and pupils very often go on excursions to other cities and various Olympiads. In addition, by contacting you, they will recommend this place to others. And this is a completely free bonus in the form of word of mouth. The main thing is that they like the hostel.
2. It is necessary to register the hostel on various social networks that are popular. It would also be a good idea to open your own website with feedback and contact information. It is necessary to indicate the location and telephone numbers. It is worth posting photos of rooms, kitchens, bathrooms and other rooms. Availability good reviews will also be able to instill confidence in the quality of services in potential clients.
3. Work with various schools(sports, music), clubs, teams. Talented people often travel.
4. Development commercial offers with a system of bonuses, promotions, discounts. They can be linked to seasonality, the number of visitors, for example.
5. Working with travel agencies.
6. Registration on travel sites and applications such as booking.com.
7. System of corporate discounts.
8. Distribution of leaflets.

Payment for accommodation will be made after residents move in. There is no need to pay anything in advance. Checkout time is 12:00. Payment is made in cash.

The cost of one place is set at 700 rubles, since the hostel is equipped with a kitchen, a bathroom, and a room with a TV, laptop and game console. In addition, there is an iron and washing machine. In general, prices for this type services vary from 350 to 1500 rubles depending on the conditions of the hostel, city, location.

Drawing up a production plan

To work, you need a room. This will be a three-room apartment on the ground floor with a separate entrance. The premises will require renovation, which will include redevelopment. The apartment will have:

• kitchen (10 m2);
• bathroom (4 m2);
• toilet (4 m2);
• corridor (4 m2);
• hall (8 m2);
• closet for administrator and consumables (5 m2);
• 2 rooms (30 m2 each);

Total total area will be: 95 m2.

The renovation will include finishing the premises, installing lamps, chandeliers, complete equipment bathroom and toilet, installing a sink in the kitchen. The cost will be 700,000 rubles.

Important: For 12 residents there must be 1 toilet, 1 shower, 2 sinks.

The apartment will need the following furniture:

• kitchen set (1 piece);
• dining table (1 piece);
• chairs (5pcs);
• bunk beds (6pcs);
• sofa (1 piece);
• bedside tables (6pcs);
• cabinets (2 pieces);
• tables (2 pcs);
• dryers (2 pcs);
• chairs (2 pieces).

You can buy new furniture or get by second-hand by purchasing it, for example, on Avito.

You will also need to purchase the following equipment:

• fridge;
• microwave oven;
• stove;
• TV;
• game console (preferably);
• vacuum cleaner;
• 2 laptops (1 for administrator, 1 for residents);
• washing machine;
• Electric kettle.

You can’t do without buying the utensils that you will need for cooking.

The cleaners clean the premises in the morning in shifts (rooms before the arrival of new residents, other premises - 2 times a day).

Administrators work around the clock in shifts. Their responsibilities include accepting applications, monitoring them, adding information about promotions, special offers, settlements with guests, their check-in, and consulting.

Salaries are paid 2 times a month (advance and salary).

People with work experience are hired. Knowledge welcome foreign languages Administrators also need excellent computer and Internet skills.

Organizational plan

The entrepreneur searches for and hires employees, and he also studies existing booking systems to assess competition. Advertising includes placement on the Internet and contracts with travel agencies.

The purchase of bedding includes mattresses, pillows, blankets, bed linen (2 sets for each bed).

Household products include supplies of shampoo, shower gel, soap, as well as products necessary for cleaning premises (including mops, rags).

Food supplies include sugar, coffee, tea.

Financial plan

Monthly income – 210,000 rubles.

Initial costs – 679,400 rubles.

Periodic costs (calculation for 30 days):

Thus, profit before tax will be: 210,000 – 143,500 = 66,500 rubles.

Taxes: 66,500* 0.15 = 9,975 rubles.

Net profit: 56,525 rubles.

Profitability = 56,525/210,000 = 26.92%.

Payback period = 679,400/56,525 = 12.02. Consequently, the business idea will pay for itself in a little more than a year.

The break-even point is reached after 205 check-ins per day.

Risks

You might think about developing a hostel for a specific consumer. For example, athletes or musicians with the appropriate paraphernalia (gym, studio room for rehearsals).

It is very important to promptly replace old or broken equipment. You can’t ignore things that are constantly used. You can't skimp on these things.

It is worth considering offering additional services. For example, developing excursions, preparing breakfasts for guests.

Make your hostel original, unlike all the others. Maybe it will be a games room or an entertainment room. In a word, everything that will surprise and be remembered!

Of course, it is necessary to constantly maintain the cleanliness of the premises.

After promoting the premises, you can think about opening another point.

We also recommend watching one of the many videos about entrepreneurs who opened a hostel:

Important: Remember that you can independently create a business plan specifically for your business. To do this, read the articles:

One last request: We are all human and can make mistakes, leave something out, etc. Do not judge strictly if this business plan or others in the section seem incomplete to you. If you have experience in this or that activity or you see a flaw and can add to the article, please let me know in the comments! This is the only way we can jointly make business plans more complete, detailed and up-to-date. Thank you for your attention!

Hostel as a type of hotel business is gaining increasing popularity. Especially in cities with a large flow of tourists: in Moscow and St. Petersburg, hostel owners are provided with a stable profit all year round.

From the article you will learn what documents a hostel needs when opening, where to start, what organizational and legal form is best to choose and what authorities to notify.

Documents are important, but first we are looking for premises

Resolve the issue of premises before registering as an individual entrepreneur or legal entity. This will save you a lot of money.

The fact is that after registration you need to pay regularly insurance premiums to the Pension Fund. And this does not depend on whether you have already started your activity or are still deciding organizational matters. Therefore, start with choosing a room, so that after registration you can open a hostel as quickly as possible and not pay all social contributions from your own pocket.

When choosing a room, you should remember that hostels cannot be located in basements or basements. With no exceptions. This demand is being made Sanitary rules and norms. The building must also meet fire safety requirements.

Don’t forget that a good hostel should register its visitors with migration records. Make sure that the owners of the premises (provided that you are renting it) give their consent to this.

Recently, the scandal surrounding the law banning the placement of hostels in residential buildings. If consideration of the law is not postponed once again, its fate will be decided before the end of this year. It is not yet known whether the law will be adopted, since the government has both supporters and opponents of this ban. But just in case, take a closer look at non-residential premises.

Found the ideal premises? Wonderful. If you own it, then immediately move on to the next point and deal with regulatory documents for your hostel. If you are going to rent property for a hostel, then it’s time to sign a lease agreement. Make sure that all the nuances are spelled out in the text of the contract and that you have the right to provide guest accommodation services in the rented area. Sign the contract for the longest possible period or discuss with the tenant the possibility of extending the contract in the future.

A lease agreement or documentary evidence of property rights should always be at hand to avoid problems with law enforcement agencies.

Choosing a legal form

The best choice for a hostel owner would be to register individual entrepreneur or limited liability companies. Let's look at the main differences.

The best option is to register as an individual entrepreneur. Firstly, this is relevant for those who are planning to open one hostel. Registration of a legal entity is required for a network of hostels.

Secondly, the tax and administrative burden on individual entrepreneurs is much lower. Thus, a patent taxation system is available to individual entrepreneurs. In this case, the entrepreneur simply buys a patent for a certain type of activity, which exempts him from paying personal income tax and VAT. But keep in mind that this only applies to entrepreneurs who own hostels. That is, those who rent premises for a hostel do not have access to a patent.

In addition, the individual entrepreneur is freed from the need to keep accounting records, register the charter and make authorized capital. And, of course, an individual entrepreneur, provided that he works alone, is “deprived of the pleasure” of regularly reporting to Pension Fund and the social insurance fund.

Also, registering as an individual entrepreneur is ideal for those who plan to open a hostel in a city other than their own, since an individual entrepreneur is registered at his place of residence, and an LLC at the actual location of the organization.

In the end, registering an individual entrepreneur is simply a faster and more economical procedure.

But LLC should be chosen by those who plan to open a hostel not alone, but together with business partners, because this form provides for the possibility of co-founding.

OKVED codes for hostels - 55.23.3 “Renting out furnished rooms for temporary accommodation.”

So, we decided on the organizational and legal form of the hostel and put together a complete package necessary documents? Now submit them to the tax authority or multifunctional center, wait for documentary confirmation of your registration and proceed to the next stage.

We get the go-ahead from the fire inspectorate and sanitary and epidemiological station

The fire inspection puts forward the same requirements for hostels as for hotels and hostels, that is, this is a functional fire hazard class of 1.2. V Federal law“Technical regulations on fire safety requirements.”

As for sanitary standards, you should familiarize yourself with the Sanitary Rules and Standards for Small Hotels and Hostels. So, from them it follows that for each bed (including bunk beds) in the room there should be at least 4 square meters, in the hostel itself (even the largest) there should be no more than 120 guests, and wet cleaning must be carried out at least once per day.

Bring your premises into full compliance with all requirements. Approach this responsibly, do not allow negligence, because the lives of many people depend on your actions.

Solving the waste issue

The law obliges hostel owners to independently remove and dispose of waste.

It is necessary to conclude an agreement with a solid waste removal company. It is important to remember that garbage removal must be carried out daily. Be sure to reflect this aspect in your contract.

Last stage: Rospotrebnadzor

Now the only thing left to do is to inform Rospotrebnadzor. Notification of the start of hostel activities can be sent by mail ( ordered letter with an inventory and notification of delivery) or in in electronic format With electronic signature applicant.

After successfully completing all the above procedures, you can open your own hostel and place guests in it.

Ready-made hostel as an alternative solution

Opening a hostel from scratch is quite a troublesome task. A clear algorithm of actions is always interfered with by some circumstances that slow down the process. And even after going through all the circles of bureaucratic hell, there is no guarantee that the hostel will receive everything permits and will be able to work. It is often more useful for the budget and nervous system, which is already a functioning business. In this case, you receive a fully equipped premises, all permitting documentation, established business processes and an establishment that has already created a positive reputation for itself and earned the trust of visitors.

We have collected all the articles about hostels that will be useful to you.

Over the past few years, hostels have become very popular in our country. This is due to several factors. Firstly, not everyone can afford expensive hotels, secondly, young people, namely they make up the backbone of hostel clients, who are not picky about recreational conditions, thirdly, good hostels, if they are well-designed, are not inferior in comfort to many hotels, but significantly benefit in price.

In this article we will talk to you about how to open a hostel, what aspects to pay attention to first, what documents to collect so that your activity is legal, how to advertise your business, and where to get your first clients. We will also try to draw up a business plan for the hostel, taking into account all the features and subtleties modern market real estate.

Documents required to open a hostel

Your goal is a serious and reputable institution, with prospects for development not only in your city, but also in the region, and in the future throughout the country. It is clear that you need to officially register your business. To do this you will need the following documents:

1. Certificate of registration of the enterprise. If you are planning to open one hostel to begin with, then this is perfect individual entrepreneurship. In the future, when the network grows, you can think about registering a legal entity.
2. You must register with the tax authorities and obtain a tax payment certificate. Many experienced businessmen advise starting with a single tax, because this will allow you to save on contributions to the state treasury and reduce difficulties with reporting on your activities.
3. Next, you need to obtain a conclusion from the fire inspection that your premises meets all norms and standards and is safe for visitors and staff. This is a very important point, because you are responsible for the lives of the people who will stay with you. No need for negligence. Meet all requirements fire service, and even more.
4. Conclusion of the SES. Your premises in which the hostel will be located must meet the requirements of the sanitary and epidemiological service.
5. A rental agreement for premises, or documents that confirm ownership of the property.
6. An agreement with a company that removes solid household waste.

The list of documents is not exhaustive, because our legislation is in a state of eternal reformation and “improvement”. Therefore, at the time of the opening of the hostel, we advise you to familiarize yourself with the current legislative framework, find out what changes have been made to the laws governing the opening and operation of hostels. We don’t think that anything will change radically in the coming years, but God protects those who are careful. It’s better to play it safe than to have problems with regulatory authorities and various government services later.

What should a modern hostel have?

As we have already said, a hostel is not a place where two Tajiks live per square meter. We can say that this is an analogue of the well-known hostels, only you can rent your place for a day or more. Hostels are mainly used by young people, tourists, those who like to relax inexpensively and spend the money saved on other, more important points. Based on the main audience of hostels, we can make a list of the required minimum:

• Firstly, free access to the Internet. As a rule, all good hostels have a WI-FI point, with normal coverage and decent speed. Young people spend most of their lives in global network. Some work, some communicate, some read or play games, and for others, the Internet is a virtual world, without which life is no longer life. Everyone has different goals, but the need is the same - high-quality WI-FI. Sometimes the choice of a particular hostel is based on the availability of free and free access to the network. It’s very surprising to see establishments that still charge their guests for the Internet. The desire to stay in such a redneck place immediately disappears.
• Nice furniture. Of course, most holidaymakers in hostels are not picky, but you shouldn’t skimp on whitewash. At a minimum, you need to buy normal beds, after a night on which a person will not feel back pain.
• Household appliances: iron, hair dryer, washing machine, etc. You need to take care of the comfort of your customers.
• Kitchen with all necessary utensils: kettle, stove, pots, cups, spoons.
• A dining room where everyone can have a snack. You can offer breakfast yourself, for a fee, you can arrange something like a buffet where you can buy sandwiches and light snacks, or you can not bother at all and give vacationers the opportunity to cook something for themselves.

This is the minimum, but if you want to be the best, you need to come up with something more. Possible to organize game room, where to put several soft sofas, a couple of TVs and set-top boxes. This will be your feature, and a trump card in advertising, which can attract even more vacationers. If you open a hostel in a tourist city, then free guides and maps for each client can be a plus. This will help the tourist not to get lost in an unfamiliar city, and in this way you will show concern and once again show that you care about the client.

The problem with many hostels is cleanliness and comfort. If you want to be the best, then you need to always keep your mark, and not work out the first few months at the level, and then leave everything to chance. Therefore, sign an agreement with a cleaning company that will do general cleaning once a week. At the same time, you need to wash the kitchen, shower, and clean the rest rooms every day. All towels, bed linen, all dishes - everything should be clean, pleasant, and neat in appearance.

Choosing a room for a hostel

Separately, it is worth dwelling on the issue of choosing premises for the future hostel. It would seem that what to think here - a large room, in the center or near the center, and the trick is in the bag. But it's not that simple. You need to take into account some features that will influence the final choice.

First you need to decide what kind of hostel you want to open. There are several types of hostels:

• The first type of hostels is designed for 100 or more people. They need a large room, which is divided into several blocks with separate bathrooms, kitchens, and rooms for leisure and recreation. As a rule, such hostels require a lot of effort, time and expense. But the payback is faster. Very often, large hostels are rented by companies that hold seminars or conferences. They invite their representatives from all over the country, and, paying for their housing, place them in hostels of this type. If you are lucky, you may sign an agreement with the company that you will provide them with this type of service on an ongoing basis.
• Average hostels, designed for 30-50 people. This is the most popular option. If you put 8 people in a room, then you need from 4 to 6 rooms. You can rent or buy two apartments, connect them together, and organize such a hostel. But most often an entire floor with three apartments is purchased. Another one is being converted into a place for relaxation, a large kitchen is being built there, and another shower room is being built.
• Small family-type hostels. This is usually one apartment with 3-4 rooms. These hostels are designed for 10-15 people. Everything is cozy, without unnecessary noise, like home. 3-4 people can live in one room, which is very convenient. If you arrive small company, then you can rent a separate room, without strangers. Such hostels do not require large investments, they are easier to monitor and care for, and operating costs are much lower. And they have one significant advantage - the price can be set higher. Due to coziness, tranquility, and comfort, you can keep the price 10% higher than competitors who have large and medium-sized hostels. And believe me, if you have a good reputation, many will be happy to overpay, but will come to you.

Choosing a place for a hostel is simple - it is advisable that they be near public transport interchanges, or within walking distance to the main attractions of the city. Many hostels open right in the center, or very close to it. But there is one minus here - the price of real estate. It’s very good if you own an apartment, or some kind of residential area, but if not, are you ready to invest a tidy sum? Therefore, it is better to make a hostel somewhere further away, but so that your guests can get by metro, trams or buses to anywhere in the city.

Advertising and promotion of the hostel

The advertisement is engine of the trade. IN tourism business, namely hostels can be classified as this; you won’t get far without advertising. Of course, over time, when several hundred clients stay with you and they are all satisfied, word of mouth will work well, and the fame of your hostel will spread throughout the latitudes of our country. But these customers need to be attracted, and for this you need to advertise. We want to say right away that the advertising budget should not be small. But in order not to waste money by using it in completely ineffective areas of advertising, we will present several main areas that will be optimal for hostels.

• Internet advertising. To successfully develop your business, you need to create your own website on the Internet. Beautiful and pleasant design, clear structure, maximum information content - these are the three pillars on which a normal hostel website should be based. You must describe your hostel, talk about its advantages, show photos of rooms, baths, kitchens, beds. You can even brag about the view from the window, if you have something to brag about. Also show where the hostel is located on the map, what cafes, shops, and public transport stops are nearby. Don’t forget that many potential clients are interested in reviews from those who have already stayed at your hostel. Therefore, we need to somehow encourage people to leave their impressions, write comments, and share their opinions.

A website is good, but if it is not promoted in the Yandex and Google search engines, then it will be of little use. If you yourself are familiar with the basics of SEO, then you can start promoting. Otherwise, entrust this matter to professionals.

It is very important that your site has several interface languages. If the city is touristic, then there is a high probability that foreigners may stay with you. And they are looking for places for a future overnight stay on the Internet.

• Social media. Don't forget about them too. Create your own pages on VKontakte and Facebook. Promote and advertise the hostel there. Conduct various promotions, give out discounts, and attract people to your group in every possible way. Social media is a great place to find potential clients. Also, do not forget about the advertising that networks offer. You can set up the targeting you need and show it only to those who, in your opinion, best suit the image of a potential client.
• Advertising through international online booking networks. Now more and more people around the world are using sites that allow them to book accommodation in a matter of minutes. You can study the conditions for admission to such online sites. If you have good rating, normal price, positive reviews, then you will receive up to 90% of all orders through these sites. Therefore, it makes sense to try to fulfill all the conditions and get into their database. Such sites include Booking, TripAdvisor, Airbnb, and others that you can easily find on the Internet.

Investments, profitability and payback of the hostel

If you are planning to open a hostel, then the issue of initial investment, profitability and payback will definitely concern you. Perhaps the most serious investment is real estate. You can rent it, but then the payback period will increase several times, or buy it. If we talk about real estate somewhere in the city center, then this can often be a completely unaffordable amount, and not at all realistic for a hostel. Therefore, there are only two options left - either you have a suitable premises (this is an ideal option), or you will rent it. Renting is more complicated. Not every owner will agree to rent out their apartment for this type of business. Unless you sign a contract for a year, or even more, in advance, give a good deposit, and agree to pay 10-15% more than the standard price on the rental housing market. What else initial costs maybe for the opening of the hostel?

• Design and decoration of the hostel. Very often they are decorated in some interesting style that would symbolize the hostel or the city in which it is located. In Odessa you can find hostels with a marine theme, the theme of ships, sailors, fishermen, etc. The cost of decoration and design depends on your vision and desire to transform the room. Perhaps you will leave everything as it is and not invent anything. If you rent a room, then most likely you will not be allowed to go wild in terms of renovation and design.
• Furniture. You definitely need to buy beds, chairs, tables, furniture for the rest rooms and kitchen. In order to save space, you can order bunk beds. This is a common practice in many hostels.
• Household appliances: kettle, iron, hair dryer, table lamps, washing machines.
• Sets of towels, bed linen, cups, plates, pots, spoons, forks and other small items necessary for a normal life.
• If the price includes bath accessories, then you need to purchase shampoos and shower gels.

This is something that should be mandatory, and without which the normal functioning of the hostel is impossible. Everything else is at your discretion, and based on the range of services that your hostel provides, you can purchase additional items.

If we talk about a specific amount, then not everything is clear here either. When drawing up a business plan for a hostel, you should start from the prices that will be at the time of opening the business. Also, a lot depends on the city and region in which you want to start your business. The same can be said about payback. Here, a lot depends on the advertising you give, and on how quality the services provided will be. A small hostel, which is designed for 15 people, can pay for itself in half a year. But this is provided that it will be located in a place convenient for tourists, and you will provide services at high level to ensure constant filling of the hostel.

Despite the incessant pace of the economic crisis, the hotel business is in no hurry to slow down even in Russia. Due to the decline in purchasing power, luxury hotel monsters are being replaced by mini-hotels and hostels. In this article we will try to figure out Is the hostel business profitable? in light of the financial crisis and recent amendments to the law on hostels.

In order to find out whether a hostel is profitable as a business, just look at the situation with the small hotel business in Russia. There are 124 hostels in Moscow, 154 in the northern capital, and in Russia as a whole there are almost 500 hostels, right up to the extreme eastern borders. There may be more; for simplicity and transparency of calculations, we take current data from the largest database of hostels around the world, hostelworld.com.

Just a couple of years ago, on the threshold of the financial crisis in Russia, these figures were one and a half times lower. You can easily verify this by looking through the publications of those years. In the capital alone, the number of hotels increased by 50% over the past year. Why did it happen that the crisis bypassed hosteliers?

According to experts, the crisis is the best time for small hotel businesses, including hostels. When you have to save on literally everything, hostels become the ideal solution for temporary housing. Even the visible illusion of a decline in the attractiveness of hostels on the market ready-made business, speaks not so much about the unprofitability of such a business, but about the consequences of a ruble default, when many offers do not find demand, and hostels specifically are no exception.

Today on the Internet it is easy to find a lot of evidence of the profitability of hostels. Often these are offers to sell a ready-made hostel or open it under an already well-known franchise. We are offered comparative tables, preliminary and real calculations profit/expenses. But all these numbers are conditional. There is no consensus on the profitability of hostels. In some places the profitability barely reaches 15%, while others promise to sell a franchise that provides up to 50% per annum. Profitability largely depends on the type of hostel.

The costs of a large hostel for up to 200 guests will be recouped faster by booking rooms by tourist groups, but this is completely unsuitable for the province. Conversely, the cost of a room with a minimum number of people living in the capital is close to a mini-hotel or even a hotel, which does not make such an offer attractive in the eyes target group hostels. The market for a ready-made hostel business is often filled with offers from short-sighted entrepreneurs who, having realized their mistakes, are in a hurry to part with unprofitable investments.

Although the barrier to entry into this business is relatively small, with an average profitability of 30% (Western analysts say the figure is 15%), the payback period for a hostel ranges from 4 to 6 years. The low initial investment is equalized by the low profitability of such a hostel. Created initially as hotels for economic tourism, hostels attract those who like to relax without forking out money, so even the sale of additional services, from which an individual hotel business receives up to 30% of its total income, will not interest hostel guests. On the other hand, thanks to the increasing popularity of economy tourism, even in the off-season, hostel beds are occupied by an average of 60%.

Hostels in Russia - profitable or not?

The initiative of domestic legislators to dilute the current, fairly free, state standard, prohibition clauses. Often confusing hostels with hospices, and generally having a vague idea of ​​economical housing, officials try to impose on rather modest hostel dormitories the requirements usually imposed on luxury hotels and inns. From now on, it will no longer be possible to locate a hostel on the ground floors or in residential premises. The result is known in advance: some entrepreneurs, not wanting to part with profitable business, will transfer it into the shadows, and the other will naturally rush to close its hostels, in both cases cutting off the tax flow to the treasury of the country.

Some businessmen openly talk about their desire to move their business abroad. Whether a business hostel is profitable when it comes to Russia depends not only on good service, carefully selected reliable furniture and appliances in the house, and not only from the foresight of the entrepreneur who successfully located his shelter near well-known tourist routes or at the metro exit, but also from your desire to swim against the tide and, if necessary, plunge headlong to the bottom.

If we do not touch upon legislative casuistry, hostels today are an example of a profitable hotel business tied to tourism and the short-term provision of apartments, which causes unwanted interest in them on the part of those in power. To figure out whether it is profitable or not to open hostels in Russia, to draw up a detailed business plan, only studying the current GOST amendments on hostels will help.

Mini-hostel

All of the above applies to a greater extent to the so-called. mini-hostels. These are hostels with a capacity of up to 20 guests, which are most often opened in apartments of residential buildings, and have become the most popular in Russia. This is extremely convenient for hostel organizers, since the issue of constructing a new, separate room and the problems associated with its arrangement are eliminated. This is also beneficial for guests of such a hostel, since saving on initial investments also reduces the cost of the room. Only the remaining residents of the building remain dissatisfied. Their complaints about the noise of guests are often exaggerated, but quite natural. Now GOST requires hostel owners to equip a separate entrance that is not connected to the common entrance and provide good sound insulation. Also, the owner of the premises must take care of a sufficient number of bathrooms, at the rate of one toilet + washbasin + shower for 10 guests.

Today, GOST does not promise large investments to an apartment hostel. Among the obligations, in addition to sanitary ones, the room must be equipped with a cooler and a kettle. Bed linen is the responsibility of the owner and, as a rule, is purchased separately and at will, as in a train carriage. There are certain regulations about the minimum four meters per person including the bed, about the minimum distances between the beds, but they are not significant.

An amendment is being considered to remove such premises from the “residential” stock and transfer them to “non-residential”, respectively. It is possible to remove from the housing stock only those apartments that are located on the lower floors, or on the floor above, provided that the first floor is “non-residential”. The final adoption of these laws is a matter of time. The procedure for transferring from fund to fund is so complicated, it requires a bunch of certificates, and, most importantly, time, that the idea of ​​​​locating a hostel in a previously residential apartment does not look so tempting, and with the participation of several authorities controlling the process, even costly.

An option to avoid the red tape associated with preparing the document base, as well as compliance with hundreds of norms and regulations when setting up a hostel, is to work under an already known franchise. The profitability of such a business will be somewhat lower than if you opened a hostel on your own, but the experienced work of specialists in their field will save you a lot of nerves. A franchise, as a rule, not only offers to set up your hostel according to a previously tested project, but also attracts clients and provides legal assistance. Even Consumables, such as detergents and personal hygiene products for your guests, franchise representatives are ready to provide at wholesale, network prices.

If you decide to open a hostel without experience, perhaps a franchise is exactly what you need. Although hostels are quite profitable and promising business, advice from professionals in starting a new business will not be superfluous.

The hostel is an ideal vacation spot for students, business travelers and tourists who do not want to overpay for expensive hotels. Despite the cheap accommodation and services offered, in total such an establishment brings excellent profits, and for many, opening a hostel means choosing the most promising and profitable line of business.

Why are hostels profitable?

It's very simple: they are popular. Many tourists and guests of the city are happy to stay in “hotels” that rent out not individual rooms, but spaces. Of course, there is a possibility that you will have to spend the night in the same room with strangers, but as compensation the guest receives low prices, acceptable service, cleanliness and communication.

What do you need to know to open a hostel? In fact, a businessman should only have experience of relaxing in such establishments, and the difficulties accompanying the creation of a business will be minimal. The owner of such a “hotel” will need:

1. Register an enterprise (an individual entrepreneur or LLC with a simplified taxation system would be an excellent solution)
2. Open a bank account into which payments for guests will be received (it is advisable to immediately open the possibility of transferring funds from abroad)
3. Obtain permission to open a hostel in the selected premises - it is issued by municipal authorities
4. Obtain permission from the health authority, which will check the living conditions in the “hotel”

You do not need to obtain any business license. Moreover, you don’t even have to have your own cash register – it will be replaced by strict reporting forms.

Particular attention should be paid to the premises, on which the answer to the question of whether it is profitable to open a hostel directly depends. It is best to place such a “hotel” in a convenient, but not central regions, where rental costs are not too high. There must be major public transport stops nearby, and if there are none, the “hotel” must offer a shuttle service for guests.

You can save on the area of ​​the rooms by installing bunk beds in the rooms: the number of beds will thus double, but they will take up minimal space. It is also important to take care of the hygiene of guests: in hostels there should be 1 sink for 6 people, 1 toilet for 12 people, 1 shower for 15 people. All this will be in great demand: for many visitors, such accommodation is the height of their dreams!

What should you take care of when opening a hostel?

There are a number the most important nuances, which will need to be taken into account, and on which the answer to the question of how much it costs to open a hostel in each specific case will depend. The company needs:

1. An interesting idea - hostels decorated according to a theme are always in higher demand
2. Qualified staff - for starters, one administrator (he can also be a receptionist), 1-2 maids will be enough: all employees should be young, because most often it is young people who stay in hostels, and it is much easier for their peers to find a common language with them
3. A well-thought-out range of services: if possible, the hostel should offer free Internet, household items and basic equipment, guide services (simple tourist information will be enough)
4. Thoughtful rules - any guests can check in, but they should not disturb neighbors, make noise, or provoke conflicts

How to start a hostel?

The building for the “hotel” can be rented or purchased. In the latter case, it will be expensive - 4-5 million rubles (the construction of a new building will cost 9-10 million, but this step should be taken after firmly understanding whether it is profitable to open a hostel in a particular locality). The rental price can be equal to the cost of a regular apartment or office space in a specific city.

Having decided on the premises, you need to:

1. To make repairs to it - it will take up to 100 thousand rubles
2. Buy furniture for rooms – 200-300 thousand.
3. Purchase various household items (bed linen, towels, hygiene items, curtains, etc.) – 50-80 thousand rubles

As for profit, the cost of accommodation can range from 800 to 2000 rubles (depending on the locality). A 20-bed “hotel”, fully filled, will thus bring in 16-40 thousand at a time. The total profit per month can reach 100 thousand or more. Half will be spent on paying employees, renting premises, and paying utilities, and approximately 50 thousand will remain net profit.

Regardless of how much it costs to open a hostel in a given city, the payback of the project, even if it does not develop at all, will come within 10 months. If the building was purchased or built from scratch, this period will last for several years, but with proper development of the “hotel” you can significantly reduce this time, developing a solid client base and never being idle without guests.

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