Many aspiring entrepreneurs who decide to explore the fertile field of the hotel business make their choice in favor of a hostel. In order to become a hostelier, no large investments are required, while the hostel remains extremely in demand in the hotel services market, which together makes hostels an ideal springboard for starting your career. If you decide to start your own hostel business, it will be useful for you to know some aspects regarding the location of your future enterprise. What premises are suitable for a hostel, residential or non-residential? Is it possible to open a hostel in non-residential premises? what should non-residential premises for a hostel be like? and other frequently asked questions will be discussed below.
What is a hostel?
A hostel is a special form of hotel. The main difference from a hotel is the nature of the accommodation of guests. There are no separate rooms for one or two people. Sleeping places are equipped in a common room, often with bunk beds. The kitchen and bathrooms are common for use. Instead of a bath, there is a shower.
Due to the saving of space per person, the price of services in the hostel is significantly lower than in a regular hotel. For this reason, mini-hotels are popular among the mobile population, for whom comfort is not as important as the cost of temporary accommodation. The convenience of hostels lies in the ability to open them in central urban areas, where daily rent of residential premises and expensive hotels are expensive.
Sberbank
- Sberbank
The largest and oldest bank in Russia with the highest level of reliability. Despite its popularity, it does not stand still, actively improving customer service, technical support, and introducing new technologies. Sberbank has the largest number of branches and ATMs in every region of Russia. There are tariffs with free service if there is no activity on the account.
pros
- free account opening
- more than 35 online services for business
- remote accounting
- high reliability of operations due to the use of our own settlement system
- business credit cards with a grace period of up to 110 days
Minuses
- Cash is credited to credit cards with a delay of up to a day
The largest and most famous bank in Russia offers businessmen many tariff plans, both for large and small businesses. In this article we will look at the most popular tariffs for individual entrepreneurs and LLCs from Sberbank:
Is it possible to open your own mini-hotel from scratch in non-residential premises and apartments?
Until October 1, 2021, entrepreneurs took advantage of the opportunity to open hotel establishments in apartment buildings by purchasing apartments on the floor or concluding lease agreements with the owner. This situation suited clients and hostel owners. The negative reaction of residents in the entrances of houses to noise, dirt, and the question of whether it is legal to open a hostel in an apartment received a response from legislators.
To the question - how to make a hostel from an apartment - after September 1, 2019, the answer will be as follows - not at all or if certain requirements are met.
Hostels located in residential premises must be closed. The owner of the hostel is obliged to re-register the apartment/apartments from the residential category to non-residential, subject to the conditions of floor placement.
Hostels in multi-storey buildings can only be placed in non-residential premises on the 1st floor. It is possible to open an establishment one or two floors above, provided that there are non-residential premises below: shops, organizations providing household, medical, legal and other services.
In addition, starting from October, hostels must have a separate entrance. Walls and ceilings shared with apartments must be soundproofed. Fire safety requirements have been tightened: installation of a fire alarm is mandatory. The desire to have a good income without taking into account the opinions of residents became the reason for a harsh legislative response.
Re-registration and installation of a separate entrance will require significant expenses. Hostels above the 3rd floor will close. For visitors, this will mean the inability to stay in cheap hotels in the city center.
How to choose a room
Location. It is important to locate the hotel near tourist routes. Perhaps people come to your city to relax at a ski resort, swim in the sea, or sightsee. Optimal placement is near a metro station or train station (airport) or closer to the city center.
Room area. Based on the amount of funds you are willing to invest in the business.
- A small family hostel is an option for a small initial investment. A family hostel is aimed at 10-20 people and is most often located in an apartment in a residential building (this is not yet prohibited). The target audience is young people and tourists. And small doesn’t mean bad. With a small scale of business it is easier to cope and arrange everything in the best possible way. People are willing to pay more to relax in a comfortable lamp atmosphere. But here you are unlikely to be able to hire a manager and go to Goa.
- The average hostel is ready to accept from 25 to 30 residents at a time. The space and investment requirements here are much greater, but the return on investment will be higher. To open such a hotel, buy two apartments nearby or rent an entire floor.
- A large corporate hostel requires a huge investment and space and can accommodate about 100 people. It will not be possible to start such a business in apartments, so you need to properly design the non-residential premises. Such a hostel can pay for itself much faster due to its corporate orientation. Host sports teams or corporate entities holding conferences and seminars in your city.
Pros and cons of opening a hostel
Inexpensive hotels in busy areas are always in high demand among visitors. The business will be successful if the entrepreneur is able to offer services that are comparable in quality, cost, and location of the hostel. Provided that the occupancy rate of the mini-hotel is above 50%, the costs will be recouped within 2 years.
Important! There is always risk when starting your own business. It is impossible to foresee how the situation may change in a few years in terms of legislation, the standard of living of the population, which will affect the desire to travel.
Running a small business, due to low income, limits the recruitment of staff; the hostel owner has to resolve many issues every day. The owner’s high level of employment is a minus in organizing a mini-hotel.
Recommendations
You can create a hostel for specific consumers. For example, athletes or musicians with the appropriate attributes - a gym, a studio room for rehearsals.
It is important to be careful about things that are used regularly. You can't skimp on them. The provision of additional services will improve the success of your business. For example, conducting excursions, preparing breakfasts for clients.
The establishment should be made original, not like the others. You can design a games room or entertainment room. And, of course, maintaining the cleanliness of the premises is important. Only if one point has become in demand can the rest be opened.
Price
The costs of opening a hostel are divided into one-time and ongoing. One-time – these are financial investments in the material base of the mini-hotel and registration of permits:
- The premises need to be refurbished to match the status of a hostel.
- Purchase equipment, furniture, inventory.
- Organize a promotional event.
- Register a business.
- Other expenses.
The largest share in one-time expenses is occupied by the arrangement of the hotel, since the quality of the services provided and competitiveness will depend on this. The lump sum depends on the number of beds and the package of services that guests can count on. Approximately, this will amount to about one and a half million rubles.
Current expenses include:
- wages of service personnel;
- Payment of utility services;
- bank loan;
- remote accountant;
- sanitary and hygiene products;
- other expenses;
- transfers to the budget.
The amount of monthly expenses, on average, does not exceed 200 thousand rubles, including about 50% - wages of employees and accountants. If the premises are rented, then rental costs should be added here.
Alfa Bank
- Alfa Bank
The largest private bank with a well-developed network of branches, represented in almost all regions of Russia. Operating since 1990, it carries out all types of banking operations existing in the financial services market. Focused on continuous improvement of service quality and technology.
pros
- online business account in 5 minutes
- the ability to create an individual tariff plan, including only the necessary services
- payments to the budget and business clients of Alfa-Bank without commission, interest on the balance every day
- extended operating day
- online service Traffic Light, showing possible risks of account blocking under 115‑FZ
Minuses
- frequent loan offers via SMS
Alfa-Bank has extensive experience in servicing individual entrepreneurs and LLCs; the bank provides one of the best services in the country and has developed special tariffs that are suitable for any type of business.
Where is the demand greatest?
The business will be successful if the services offered are in demand. An analysis of migration flows to or through a populated area should be done. Large cities, tourist and resort areas are in an advantageous position. The need for a hostel will arise if there is a tradition of holding festivals and exhibitions in the area.
Before organizing a mini-hotel, you need to compare supply and demand: find out how many similar establishments there are in the city, where they are located, what services they offer, and at what price. The information received will help you make a choice - where, how, and how much to open a hostel.
Can we continue to work with TravelLine? Will we not get fined?
You can work with us because we have replaced everything you need.
If you are just planning to become our partner, be sure to inform us that your property falls under the Khovanskaya Law, and we will apply the necessary settings when connecting TL services.
TravelLine personal account
| Where did they change it? | Was | It became |
| In guest confirmation | Numbers | Rooms |
| In a welcome letter In a letter about an incomplete reservation for a guest In a letter about an unfinished reservation for an accommodation facility | Room categories | Room categories |
| In hotel confirmation | Numbers Hotel name Hotel code | Rooms Name Code |
Online booking module TL: Hotel
| Was | It became |
| Hotel, hotel, hostel, etc. | Property |
| Number | Room |
| Accommodation facility | Property |
Hotel website builder TL: Express
| Where did they change it? | Was | It became |
| On the home page | Numbers | You can choose from the list:
|
| In the "Rooms" section | Numbers | You can choose from the list:
|
| In the "Services" section | Services Heading "Hotel Services" Heading "Room equipment" | You can choose from the list:
"We are offering to you" "Equipment" |
| In the "Contacts" section | Location, route to the hotel | Location and route |
| In the number search form | Room reservation Find numbers | Booking Find |
For different types of hosting media, TL: Express gives different names by default, but this can always be changed in the settings of your personal account: section “Site Builder” → “Content Management”.
Required permits and documentation
What you need to have to open a hostel in non-residential premises:
- complete paperwork at the local administration;
- tax office;
- open a bank account.
The type of activity (Limited Liability Company) is registered with the mayor's office or district administration.
Based on the received paper, the State Tax Inspectorate assigns an OKVED code. Entrepreneurs are required to record payments for their services through a cash register, which must be registered with the tax office.
The next stage is concluding a lease agreement if the future businessman does not have his own non-residential real estate. Then the premises are renovated, equipment and furniture are installed.
Upon completion of the arrangement, it is necessary to obtain permission from the sanitary-epidemiological and fire authorities. Based on a package of documents giving the right to open a hostel, an agreement is concluded with the management company.
Advice for entrepreneurs
- Be sure to convert residential premises to non-residential premises. Many people neglect this rule, since it is a long and expensive process, while working in the shadows. But such savings can result in a huge fine and closure of the business.
- Maintain good relationships with residents and neighbors: this will help not only at the first stage (transferring the premises to non-residential), but also in the future. It is the constant complaints from neighbors that cause constant inspections by government agencies, which significantly interferes with normal work.
- Think in advance about the scale of your business. If you plan to open only one hostel, then it will be more profitable to obtain individual entrepreneur status - in this mode you can use the simplified tax system of 6%. If you are planning to open a network of hostels, you need to register an LLC. It is easier for an individual entrepreneur to keep accounts; no charter or capital is required. An individual entrepreneur is registered at the place of residence of the person, and in the case of an LLC, the address of the actual activity must be indicated. At the same time, if you plan to open a network of hostels, then it is better to immediately register an LLC.
- Study all the nuances of the room and its location. Check the landlord (his integrity), the purity of the transaction, if you are purchasing premises: are all parties capable, is the premises not encumbered, are there any grounds for terminating the transaction subsequently, the “purity” of the counterparties. Pay special attention to technical documentation (to ensure that there are no illegal alterations) and the purpose of the premises.
- Analyze the hostels in your city: which are the most popular and why. This will allow the hotel to be more competitive.
- Select your staff carefully (and provide regular training). The weakest point of hostels is cleanliness. Pay special attention to the business plan, development, and advertising.
Personnel and equipment
Important! The hotel must be equipped in accordance with the requirements of the State Standard of 2014. If they are not met, permits will not be issued.
Requirements for the arrangement of the premises:
- distance from floor to ceiling - at least 250 centimeters;
- 1 sink – for 6 guests;
- 1 toilet – for 12 people;
- 1 shower – for 15 people;
- The minimum area for 1 bed is 4 square meters.
Single beds (80x190 centimeters) must be at least 75 centimeters apart. No more than 8 people can be accommodated in one room.
When planning a hostel, the following should also be provided:
- small kitchen for preparing and serving breakfast and dinner;
- lounge room with TV;
- utility room for storing equipment, bed linen and sanitary products;
- administrator's room.
To give coziness and comfort you will need:
- bedside tables;
- sofa;
- chairs;
- kitchen table;
- Kitchen Cabinet;
- TV;
- curtains;
- lampshades.
In the kitchen you need to put a refrigerator, microwave, electric kettle, and a set of dishes. A double set of bed linen and towels is purchased, depending on the number of guests. The presence of an iron with ironing board, automatic machine, and Internet access will increase the competitiveness of the hostel. Employees will need a vacuum cleaner and a laptop.
The minimum number of employees in a mini-hotel is 4:
- 2 people – at the reception, registration, check-out of visitors (in shifts);
- cleaning lady-maid;
- accountant.
Depending on the area and number of beds, the cleaner and accountant are hired full time or for several hours.
Financial part
What is the cost of the establishment? To do this, you need to determine how much is required to open. One-time and monthly expenses will be required. One-time ones include:
- repair and design – 400 thousand rubles;
- purchase of equipment and furniture – 900 thousand rubles;
- advertising – 50 thousand rubles;
- business registration and other expenses – 100 thousand rubles.
One-time costs amount to about 1.5 million rubles. Monthly expenses include:
- rental of premises – 45 thousand rubles;
- salaries and transfers to extra-budgetary funds - 85 thousand rubles;
- utilities – 15 thousand rubles;
- outsourcing services – 15 thousand rubles;
- purchase of consumables – 5 thousand rubles;
- other expenses – 20 thousand rubles.
About 185 thousand rubles will be spent monthly. But these are approximate figures. Depending on the size of the establishment and region, they may vary.
Considering that the most mobile group of the population are young people under 30, it is necessary to use advertising tools on the Internet:
- Create an information website about the hostel with photographs, list and cost of services, contacts;
- Conclude agreements on advertising placement: on intermediary sites for booking accommodation;
- travel agencies;
- on social networks.
As a marketing ploy on the website and in advertising, it is worth pointing out discounts when booking a large group or for a long time.
Marketing
After opening a hostel, there is no point in waiting for it to promote itself. A successfully organized advertising campaign will make it popular and recognizable among future guests. What can you do to promote the project:
- distribute flyers near educational institutions;
- promote the hostel via the Internet on social networks, websites, using banner advertising;
- tell employees of travel companies about yourself, offer them bonuses in return for advertising cheap accommodation to tourists;
- organize discounts and promotions for potential residents.
Advertising promotion must be organized on an ongoing basis.
Distributing business cards, leaflets, advertising in the media, on local radio, in print publications - any way to convey to the target audience the contacts and benefits of accommodation in your hostel is welcome.
Tax system
Typically, hostel owners are individual entrepreneurs. They can choose a simplified taxation system: the simplified tax system “Income” (6% of income excluding expenses), the simplified tax system “Income – expenses” (15% tax on the difference between income and expenses), and in some regions - the Unified tax on imputed income or patent system (you can buy a patent only if the premises are owned). An entrepreneur independently chooses the optimal taxation system for himself, taking into account planned income and expenses. Read more about taxation for individual entrepreneurs here.
