Real estate, if properly managed, can be not only a safe haven for finance during various economic crises, but also a very profitable business. One of the best options for investing savings is a guest house.
The business plan of a small hotel is not difficult, but in order to become a successful manager, you need to make every effort. The new businessman will have to solve both financial and organizational issues. It is very difficult for one to cope with all the tasks, so most likely you will have to hire additional staff.
Comparative analysis of the hotel industry
In economically developed countries, the situation is considered normal when 60% of residents prefer large hotels, and the remaining 40% choose the private sector. The situation that is currently observed in the hotel business in Russia is in many respects similar to foreign experience. The significant difference lies only in the fact that in our industry there is practically no competition.
In the countries of Western Europe, small guest houses have firmly occupied their niche. In such mini-hotels it is difficult to find a fitness center, bar, pool or casino, but guests, as a rule, do not need all this. People are primarily interested in comfort and quality of service.
A large hotel operates on the principle of a conveyor. Its staff considers each new customer as one of many. Even ordering a luxury room, it is difficult to get rid of the intrusive service and simulated politeness, for which you have to give "tea" each time. Some for this reason choose a cozy guest house.
How to open your mini-hotel: search for premises
The first problem that a person who wants to work in the hotel industry will encounter is finding a suitable room. For a small hotel, it is not necessary to buy a high-rise building, and it will not be easy to find a private mansion in the conditions of urban development.
There would seem to be a way out of the impasse. The housing market, even today, is literally full of communal apartments. This is the best option to open a guest house. The business plan should provide for a certain initial capital that will be spent on the purchase of such residential premises.
If possible, it is better to buy housing located above the second floor. It should also be borne in mind that guests prefer to stay in the central and historical areas of the city. Attention should be paid to the availability of cafes and shops nearby.
Classification of private hotel business
In our country, the concepts of “guest house” and “small hotel” are not legally defined. In this regard, difficulties arise in their classification. If you take advantage of foreign experience, then a hotel can be considered small, in which the number of rooms does not exceed fifty.
There is also its own unofficial classification in Russia. According to its criteria, small hotels (10-30 rooms in specially constructed buildings) and mini-apartment hotels (5-15 rooms in multi-storey residential buildings) are distinguished. Hostels located in private mansions are also distinguished separately.
Some people are used to counting stars in order to determine a good hotel or a bad one. This approach cannot be applied to small hotels, as the requirements for a guest house - regardless of its size - will be the same.For example, to assign 5 stars, it is necessary that the building has a hairdresser, tennis court, several elevators and much more.
Daily rent of apartments
In conditions of increased demand for real estate and the lack of activity of construction companies, the price per square meter of housing is constantly growing. That is why people who have several apartments or houses prefer not to sell them, but to rent them out. A similar situation is observed in many countries, but in Russia successful companies and organizations, not just ordinary citizens, are engaged in daily rental of premises.
This paradox can be explained by the fact that the official registration of the hotel business is a very complex procedure from a legal point of view. If the mini-hotel will be located in a former communal apartment, then the room will need to be first brought to a non-residential fund, and then a complete redevelopment of the space will be required. It will take a lot of time and effort.
According to statistics, every second guest house registered to an individual is located in the residential sector. Taxation, which in this case is much more humane, is another reason for this choice.
The advantages of mini-hotels
According to surveys, people staying in small hotels and private hostels called the main reason for their choice lower price, comfortable interior, as well as an individual approach to each client. It is very important that guests can feel at home. Large hotels, accommodating hundreds of guests, are very poorly suited for these purposes.
The guest house, the business plan of which is very flexible and easy to modify, is suitable for both a creative person and a businessman. The menu and daily routine can also be discussed with the client in advance. Of great importance is the provision of services such as washing clothes, delivery of fresh newspapers and mail.
The small format just allows the guest to create a feeling of coziness and comfort, and it is worth a lot. The owner of the guest house can effectively control the quality of the services provided.
Phased Action Program
The business plan of the guest house is best divided into several small points. You need to perform them sequentially, then you do not have to find funds for everything at once. This approach will help to succeed in the shortest possible time.
So, after the room for the future mini-hotel is selected, it is necessary to proceed to the main stage. The reconstruction of an apartment or house will take most of the initial capital. But this is not so bad, the main difficulty will be in obtaining all the necessary documents. Sooner than a year later, finishing with paper and paperwork will fail.
But bureaucratic hassle does not end there. In order for the mini-hotel to have light, gas and hot water, you will have to run to the appropriate authorities. If all of the above circles of hell were passed successfully, then you can proceed to the most enjoyable part of the business, namely recruiting and attracting the first customers.
Choosing the best price category
It is always necessary to first analyze the market, and then draw up a business plan. The guest house must meet the requirements of a certain price category. Lack of a clear class orientation may scare potential customers.
Do not chase two hares. If among 5 budget rooms you can place 5 luxury rooms, then, most likely, both categories will not like it. Also, hourly rental of premises for love pleasures can very quickly ruin the reputation of the hotel.
Staff recruitment
The so-called human resource must be necessarily included in the business plan. The guest business is made by the staff who work in it. It will depend on his politeness and responsiveness whether the visitor wants to return to the hotel again.
The number of staff should be calculated based on the number of rooms in the guest house. With 10-30 guests, for example, a team consisting of a manager, a cook and two maids can easily cope.
Payback
In order to at least roughly determine the payback period, you need to calculate the costs and revenues that the guest house will bring. A business plan, as noted above, should first of all take into account the cost of acquiring a room.
The best option would be the acquisition of 300 square meters of living space. Such a pleasure will cost at least 600 thousand dollars. About half of the announced amount will have to be spent on redevelopment of the premises, its decoration, execution of permits and conclusion of contracts with resource-supplying organizations.
The costs of standard services, which include clean linen and three meals a day, should also take into account the business plan. A guest house without them will simply turn into a rooming house.
There are 2 ways out of this situation. The first one is to hire a cook and other attendants.
Another provides the need for interaction with third-party organizations: canteens, cafes, laundries.
Any business needs advertising. And the guest house is no exception. Post it better in local newspapers and glossy magazines specializing in tourism topics. An excellent marketing tool is the Internet. But decisive will be the word-of-mouth advertising, which spreads at the speed of light.
So, if you look at the statistical calculations, it turns out that the launch of a mini-hotel with 10 apartment-type rooms or an identical-sized guest house will cost a million dollars. Such investments will pay off not so soon, on average, it takes from 6 to 8 years.
