Hostel business plan
The fashion for hostels has recently come to us from Europe. There, this direction has become colossal. It turned out that such a modest type of accommodation is in great demand among travelers. In Russia, the first hostel opened in the 90s, in the city that is the "Window to Europe". In the past few years, the possibility of opening a hostel has excited the minds of not only start-up entrepreneurs. Many experts point out that now is the golden time for opening budget hotel options. Read this article on how to open it. how to draw up a hostel business plan and what numbers to start from.
To open a hostel, a business plan is required. Pondering costs in your mind, or blind trust in the estimators, turns into "sudden" unforeseen costs, going beyond the available budget and the collapse of expectations for the return on investment of the hotel.
The hostel's business plan is an extensive comprehensive calculation that includes all the costs of purchasing and furnishing the premises, staff maintenance, advertising, etc .; the planned cost of a bed; hotel occupancy per year and calculation of net profit. In the end, the plan should show when your hotel business should go to zero, and when - to start bringing money into your pocket.
The very first thing to do is to study the competitive area. You can even take a google map with budget hostels marked on it and conduct an analysis. You will undoubtedly see their concentration in the historical and business center of the city. What do you need to know about your competitors? You need to study all their sites, write down what seemed to you to attract attention, and what - repulsive. Write down the cost of overnight stays, a list of their services, and note for yourself which of the hostels is the most successful in your city and why. The main criteria for the well-being of hostels are:
- Low prices
- Location
- Number of beds in the room
- Services
- Customer Reviews
- Atmosphere
What does a potential client need when he chooses a hostel? Low prices, location close to attractions, metro stations, bus stops, theaters, cafes. Of course, he is looking for a good price-performance ratio. Today the price for 1 night stay in a hostel in Russia ranges from 500 to infinity. At the initial stage, businessmen often restrain minimum prices, and when the hotel acquires a certain rating, they gradually increase prices.
We note right away that the amount of expenses that we take into account is very conditional. The level of costs depends on a particular city, on the reputation of the hostel, on the number of services provided; on whether there is gender separation; how many bathrooms in the hotel; how close it is to the historical center; and many more factors.
For example, let's take a small hostel with an area of 60-90 square meters; with wifa; the ability to accommodate 16 people at a time; a small kitchen with a minimum set of essentials.
On average, the occupancy rate of hostels in large cities is 60%. Of course, in the "hot" season it is higher (May and New Year holidays; summer period), and in winter it may be lower.
We do not take into account the cost of renting or buying premises, as well as its redevelopment. The fact is that it is impossible to predict its value. Prices vary wildly from city to city. Suppose that the issue of the availability of premises has been resolved. We need to estimate how much to invest in cosmetic repairs, in the purchase of the required minimum, etc.
Minimum costs:
- Finishing work on the specified area will cost about $ 1,000.
- Purchase of bunk beds - 8 pcs. x $ 300 = $ 2400.
- TV sets for each room for 4 guests - 4 pcs. multiply by $ 400.
- A kettle, refrigerator, washing machine, iron, vacuum cleaner will cost at least $ 1,000.
- Tea, shampoos, bath rugs, bed linen and other little things - $ 500.
The total is 6.5 thousand dollars or, at the current exchange rate, about 400,000 rubles.
It is necessary to take into account the remuneration of employees. A cleaner for such an area can be hired from 10,000 rubles per month; the accountant will take about the same amount. Let's assume that you take over the administration of the hotel.
Utility bills will amount to about 8,000 rubles.
The total is about 40 thousand rubles per month for standard expenses.
Let's calculate the income: multiply the average cost of a bed of 500 by the number of guests, 30 days and the occupancy of the mini-hotel:
RUB 500 x 16 x 30 days x 60% = 144,000 rubles.
Subtract monthly expenses: it turns out 144 - 40 = 100,000 rubles - monthly income.
We invested 400,000 in the opening of our hostel. Thus, in 4 months, it should start making a net profit.
Remember to provide laundry and ironing services. Novice hoteliers solve this question in different ways. Someone at the initial stage copes with this task on their own; someone hires a maid (for this option, you can also hire a couple of hours a day); someone enters into a contract with a laundry.
In our approximate calculation, we were based on the fact that we already have a room that does not require redevelopment, for example, a three- or four-room apartment on the ground floor with a bathroom.
However, renting such a room is not as easy as it might seem. And the existing apartment in any case will require redevelopment. The fact is that to open a hostel in an apartment, you need it to be exclusively on the first floor of the house, and it must have a separate entrance.
The cost of buying commercial real estate on the ground floors in the city center is in the millions. In large cities, the purchase of such an area can cost from 5,000,000 rubles to infinity. Rent of 100 square meters of area - from 50,000 rubles. monthly. The closer the hotel is to the attractions, the higher its cost. However, this advantage can show off in bright letters and numbers on advertising banners. For example, the inscription "5 minutes walk to the central embankment" or "The hostel is located in the historical part of the city, within walking distance from all the main attractions of the old city" will provide you with a large number of clients. In addition, adding a couple of hundred rubles daily for this advantage will be logically justified.
A good layout is a guarantee of space ergonomics and economy. A professional designer will create a hostel project that will meet all the requirements and will not "eat up" the extra space. In any case, you need to know that the distance between the beds should be at least half a meter, and the single beds themselves should be at least 90 x 180 cm.
It is necessary to provide for good sound insulation and ventilation. You will also need an entrance area, a place for tea, a place for an administrator and a bathroom. For 16 guests, you will need 2 toilet bowls, 4 sinks, 1-2 showers.
Do not forget that a beautiful "picture" attracts the client's attention. Take quality pictures of the hotel, decorate with stylish and inexpensive decorative items. Do not skimp on website creation and promotion. The client will find out everything he needs by your “business card”, so seek help from a professional designer.
