How to open a hostel: business plan, tips, recommendations
The hostel as a business is a fairly common phenomenon both in the developed countries of Europe and Asia, and in those that are just beginning to develop. This is not surprising. After all, the number of people who travel or often move for work is only increasing every year. Most of these travelers strive to see as many new places as possible, to get the maximum experience and spend the minimum amount of money.
For those who are in other cities and countries for work, the issue of spending money is also very important. Therefore, economical housing, where it is clean and comfortable, where you can take a shower, sleep, have breakfast and go about your business is a priority option in this case. How a business based on such housing works, how profitable it is, and whether it is possible to make money on it, we will analyze in detail in this article.
First, let's figure out what a hostel is and how it works. The hostel does not have single or suite rooms. This is an economical housing option where a room can accommodate from 2 people. Maximum can share the night in the hostel up to 25 guests. Such rooms can be either shared (where men and women live together) or separate.
Often, one hostel has several accommodation options to choose from with different price categories. Shower and toilet are provided either per section or per floor. The kitchen is also common for everyone.
The hostel is rarely settled for a long time. As a rule, this is a short period - a couple of days or at most a week. The atmosphere and attention with which the guest is greeted are important here. After all, this is not a large hotel with a large number of staff, where everyone is responsible for their own part of the work. Almost all the work in these mini-hotels is done by administrators.
By the way, the hostel is one of the best business ideas for women. After all, who else is able to create an atmosphere of comfort, if not them?
How to start a hostel wisely
If you decide to enter this business, then you have to figure out all the intricacies of how to open a hostel. Before you start buying or renting real estate, you need to figure out which area of the city is better to accommodate, how many people to open a hostel for, what you will have to face and how much money will be needed for all this.
Selecting a location
The hotel business is a popular business sector that brings consistently high income and does not require constant monthly investments. A new solution in the form of accommodation is a hostel. It is a great option for aspiring entrepreneurs looking to try their hand at the hospitality business. This industry allows beginners to implement a project even with a small investment. Before you start the business of renting out housing for rent or for a certain period, you should first see what conditions, documents are required for this and how much money is needed to open a hostel.
Feedback from the owners about the hostel as a business suggests that all the necessary injections of funds are required at the start. To do this, novice entrepreneurs and those who want to invest free money in real estate must prepare a number of documents, as well as make an accurate calculation in order to understand how long the implemented project will begin to pay off. A hostel is a system of rooms that can be located in an apartment or in a private house. This segment of the market is budgetary, therefore it is in great demand, especially among young people, tourists and travelers.
All you need to open a hostel is to choose the kind of marketing moves that will attract customers on a permanent basis. On various resources, you can also find reviews that contain negative comments telling that the projects did not pay off. However, in most cases this happened when the entrepreneurs themselves did not pay enough attention to the development of their hotel business. Those who chose the location for the hostel, which was not very popular with tourists and vacationers, also suffered failures, since it was located far from all cultural and historical places, as well as the city center itself.
Selection of premises
The hostel as a business is described in detail in the reviews of the owners. They say that when choosing this type of occupation, it is necessary to find out what dynamics the local market has. This means that an entrepreneur or future investor must study the demand in order to provide a very profitable offer in a specific area of the city.
A hostel is a small room or a house in the form of a hotel. It will provide an opportunity at minimal cost and within a short time to start making a net profit. The result is ensured by a competent calculation, as well as a high-quality advertising policy aimed at attracting customers and vacationers.
On various business forums, you can find owner reviews of the business. The hostel, implemented as a project for making money, brings a stable income, and the owners on the Internet share their impressions of the results.
The main costs of investing in a hostel relate specifically to the payment for the premises. A businessman can purchase the required type of real estate or rent it. However, in the second case, you will need to obtain additional permission from the owner of the property in order to organize there a place for recreation of citizens and tourists.
Accommodation for a hostel in any of its types is advantageous when calculating. Usually, when renting a large area, the payback will be high due to the availability of additional places. The same rule applies to private houses that provide accommodation services for guests. The result can be improved if you purchase several apartments at once for their further combination. Even if the business is not successful, the entrepreneur will still have real estate.
The hostel room must be of a certain size. For this, there is a state standard in the form of GOST R 56184-2021. It refers to various accommodation services for citizens and vacationers. The requirements set out in the document fully regulate the total area for hotels and hostels. All entrepreneurs who want to engage in this type of business should familiarize themselves with the GOST.
Based on the current rules in the normative act, the area of rooms for accommodating citizens must be at least four square meters per bed. These areas can accommodate a single or bunk bed. When calculating, it turns out that in order to accommodate about 10 people in a hotel on single-tier beds, an entrepreneur will need to rent an area of at least 40 square meters. Do not forget about technical rooms inside, as well as sanitary rooms, which are mandatory on the territory of the hostel. It follows from this that for 20 people an area of at least 80 square meters is required.
Best Areas to Discover
The hostel as a business collects positive feedback from the owners. The owners, who share their own experience, talk about in which areas it is better to rent or buy premises. Very often, an entrepreneur makes mistakes by choosing cheaper real estate, which is usually located on the outskirts of the city. This option is suitable for opening a larger hotel for less money. However, such a choice is not always cost-effective from the point of view of economic calculation.
Now there are many sources of income, if you consider the option of working for someone. But many people do not like this idea, people want to open their own business, try themselves in the role of a manager or manager. There are more than enough ideas for starting a business today, you will learn about one of them right now.
What is the profitability of the hostel?
How cost-effective and profitable are hostels? Have you ever been interested in this information? And in vain, because this type of small business is a very profitable business that can bring simply dizzying profits, but for this, of course, you should try first.
First, you need to analyze the general situation of profitability of such establishments not only in the country, but also in the city.
First of all, you need to consider the following: opening a hostel is much more profitable than a hotel. Not so much profitable as safer and less risky. The cost of the hostel is relatively low, you do not need bank loans to buy a space under the hostel. And also such an acquisition quickly pays off and begins to bring real profit.
The payback rate depends on the popularity of the region, its attractiveness for tourists. The principle is simple: the more the influx of people, the longer this season lasts, the more popular the hostels. People who choose this type of accommodation - spending the night next to other travelers - are primarily looking for communication and permanent location in society. In hostels, it is rare to meet some sad personalities - as a rule, people there are open to communication. They want to find out from others about the sights of the city, share their own experiences, and, quite possibly, want to find a couple of new friends.
What do you need to open a hostel? Paper Aspects
Someone wants to buy a hostel already equipped and adapted for living and just become its owner, in order to make a profit with the help of calculations and calculations over time, and, of course, to proudly bear the title of a hostel manager. Someone prefers to purchase a ready-made base over this option.
In order to open such an institution, you need to complete a lot of documentation, write a single application and go through the paperwork. So, in order to open a hostel from scratch, you need the following documentation:
- license - paper that is needed to open any institution of a public nature. Today, there are quite a few opportunities to buy a hostel franchise. That is, to acquire a building that was built in strict accordance with the rules of the network of such institutions;
- permits of the sanitary and epidemiological service - you cannot do without this either;
- it is also important to obtain permission from the fire service ...
After you collect all the necessary papers, you will need to register with the tax office in order to formalize the activities of an entrepreneur or to certify yourself as a separate legal entity. Those who already own such a small business assure that there is no need to give any bribes, there is no deception. The opening of such establishments is beneficial for the state, because this to some extent increases the number of tourists and visitors to the city.
Hostels are mini-hotels where guests can rent a bed or a private room. Students, tourists, mobile backpackers (backpackers), athletes, cyclists and others stay there. This is an option for budget travelers with a minimum package of services: bed, internet, shared kitchen and laundry. In fact, a hostel is comparable to renting out housing, but due to the larger number of beds for accommodating guests, it allows you to receive more income.
Accommodation in hostels is a recent trend in hotel services. Hostel owners attract tourists with budget accommodation. In the article we will consider all the nuances and pitfalls of opening a hostel: organizational and legal issues, investments, business promotion.
What is important to know before starting a hostel?
It is important to comply with sanitary-hygienic and anti-epidemiological rules and regulations, environmental protection and fire safety requirements in the hostel.
The requirements for accommodation of guests in the hostel are described in detail in GOST 56184-2021.
This is all reflected in the conclusion of the SES, the consent of which is required to open the hostel.
Before the 59-FZ was adopted, hostels were legally opened in residential premises: in ordinary apartments in apartment buildings or in detached buildings. As of October 1, 2021, accommodation of hostels in residential premises is prohibited by law.
Thus, the hostel is placed in non-residential premises .. If you plan to purchase premises in a residential building, then you will have to re-register it as non-residential. However, not every apartment or office will fit the hotel format. There are certain requirements:
The apartment is located on the ground floor or higher, but there are non-residential premises below it.
The entrance to the room is separate or can be equipped.
Today you can find many ideas for starting your own business. One of these ideas is to open a hostel. So what awaits a businessman if he decides to start this business, and how to open a hostel?
Business in hostels Relevance of the institution
Today hostels are not uncommon. In almost every city in Russia, and even more so in Europe and the West, you can find 2-3 decent hostels. Unlike a hotel, hostels provide the client with fewer services, but they also need to pay less for accommodation. In this regard, hostels are very popular establishments, especially among young people.
Recently, the relevance of hostels has grown several times. After all, hostels are convenient. Moreover, their convenience applies not only to clients, but also to the owners of hostels. After all, if he knows how to organize a hostel, then soon the institution will start to bring good profit.
At the legislative level, such concepts as a hostel and a mini-hotel are not defined. Hostels are small objects where several people live in one room, furniture - bunk beds, chairs, with one bathroom and a bath for the entire room. Despite these conditions, hostels, with good accommodation and not overpriced accommodation, are in constant demand. Some hostels offer free WI-FI, safe rental, breakfast, etc. Before you start organizing this business, read the bill No. 876688-6 "On Amendments to Article 17 of the Housing Code of the Russian Federation." It was adopted in the first reading on 13.5.016, the second reading is planned for November 2021. Also read GOST R 55322-2021 "Accommodation services. General requirements for hostels ”.
Today hostels are divided into three types:
- Youth ;
- With a referral to conferences;
The last type is optimal, since it includes the two previous ones. Compared to the first type, the second requires more space. Also for a youth hostel, less cost is required. The second is often empty, but just one visit to the delegation will be able to recoup all monthly maintenance costs.
Before actually opening a hostel, you need to think over every little thing, in accordance with your own capabilities. Write down the positive and negative aspects. Know that there is no gold business that immediately starts making a profit. It all depends on the individual qualities of the entrepreneur.
Documents required to open a hostel
A hostel, as a business, requires a lot of documentation from the owner. So what do you need to open a hostel?
- Step one - business registration.
Registration of an individual entrepreneur is the simplest solution for this business. The cost of registering an individual entrepreneur, with the opening of an account, receiving a seal will cost 3000 rubles.