Guides and business plans for starting a restaurant and hotel business
Guides and business plans for opening hotels and hostels
* The calculations use average data for Russia
1,000,000 ₽ Minimum starting capital
2.5 years Payback
40% Profitability
Many people dream of owning their own hotel business, but do not have enough capital to open an entire hotel or even an inn. If you are one of them, then you should pay attention to the popular format of mini-hotels in the West, and recently in our country - the so-called guest houses.
Although, strictly speaking, a guest house is not a hotel, it has a lot in common with it. The main differences between them are the number of beds (a hotel house can have a maximum of ten rooms) and living conditions. Guest houses, as a rule, are private households, the owners of which rent them out as a whole or as separate rooms - rooms. Moreover, in many cases the owner himself and his family live in the same household, but on a separate floor or in a separate part of the house. Living conditions in a guest house are as close as possible to those at home, although it is also possible to stylize the interior in one style or another (for example, Mediterranean, original Russian, rustic, etc.).
Guest house on a personal plot
The advantages of this business idea lie in the high demand for such services and the relatively small start-up capital required to organize it. The number of floors and area of guest houses, the number of rooms and rooms in them is practically not limited by law. It all depends on what you have. In most cases, guest houses are located in low buildings (from one to three floors). The average area of a guest house is about 300 square meters. meters.
Since initially the main goal of guest houses was to make a profit by minimizing the costs of maintaining the household itself and servicing its guests, their legal status is significantly different from conventional hotels. For example, guest houses do not need to be assigned a hotel class (number of stars) and approved by regulatory authorities; sanitary and epidemiological standards are not prescribed for them and there are no corresponding requirements. They are taxed at reduced rates compared to regular hotels. The exact amount of tax deductions will directly depend on the size of your guest house. On average, if you officially register for taxes, you will spend up to 60 thousand rubles monthly.
Of course, for a novice entrepreneur this amount can be quite significant. It includes land tax (deducted every six months), a single tax on imputed income and wage tax, deducted monthly. Add to this the need to regularly submit returns to the tax office and keep accounting records. It’s good if you have the relevant knowledge and, no less important, free time to do all this yourself. If you have neither one nor the other, you will have to seek help from a specialist.
An experienced accountant will save you from possible problems in the future, but his services must also be paid for. The cost of an incoming accountant's services will range from 6-12 thousand rubles per month, depending on the region, the size of the business, the form of taxation and other factors. And yet, no matter how great the temptation to save money, working “in white” has a number of undoubted advantages.
Benefits of registering a guest house
- Carry out cashless payments with your visitors
- Install terminals for accepting payments for mobile communications, etc., on the territory of your guest house,
- Work with legal entities - suppliers, contractors and agencies.
As your guest house expands, you should think about registering a legal entity, which will allow you to reach the level of a full-fledged hotel. However, in this case, you will already need to undergo a certification procedure according to the hotel standard. The standards establish the procedure and methods for planning to improve the quality of service at all stages of the guest cycle, and determine the requirements for means and methods for monitoring and assessing the quality of service. The main target of quality service systems is aimed at compliance with ICO 9000 standards, which at the interstate level define quality requirements in accordance with international standards. To pass certification, an appropriate material base of the hotel enterprise is required, qualified personnel who will fulfill their professional duties, a rationally justified organizational and functional structure, clear management of the enterprise in general and service quality management in particular.
In accordance with the Law of the Russian Federation “On Certification of Products and Services,” certification is a set of actions and procedures for recognizing and confirming the compliance of services with the imposed (established) requirements. These compliance requirements are established by GOST 28681.0-90 “Standardization in the field of tourist and excursion services. Basic provisions"; SNiP 2.08.02-89. “Public buildings and structures”, Rules for the technical operation of hotels and their equipment, Law of the Russian Federation “On Safety”, Rules for the provision of hotel services in the Russian Federation, GOST R 50645-94 “Tourist and excursion services. Classification of hotels", Fire Safety Rules in Russia PPB-01-93.
State standard of the Russian Federation (GOST R 50645-94) “Tourist and excursion services. Classification of Hotels" defines a hotel as "an enterprise intended for temporary residence." Its requirements apply to hotels with a capacity of at least ten rooms.
Approximate calculations
The total cost, as well as the return on investment, of a guest house depends on the region and location. The average costs are approximately:
- Purchase of a building with a plot - from one and a half million rubles.
- Re-equipment, landscaping, finishing, construction of additional structures - from one million rubles.
- An advertising campaign for “promotion” costs about 100–150 thousand rubles.
- Staff salaries per month are about 100–200 thousand rubles.
- Taxes and related costs for maintaining a guest house per month - from 50 thousand rubles.
Thus, the minimum amount of initial investment is close to three million rubles. At the same time, rooms are usually rented at a price of 500 rubles per person per day with a minimum set of services. If you have additional services and comfort at the level of three or four stars, you can increase the price of accommodation to one and a half, two or three thousand rubles per person per day. With average attendance, five standard two-three-bed rooms will generate income of about 400-600 thousand monthly. Thus, it is possible to pay for a guest house in a period of eight months while maintaining attendance throughout the year, and in one and a half to two years if there are high and low seasons.
A guest house as a business can be recommended to entrepreneurs with initial capital of five million rubles and above. The profitability and stability of a business will be high if you approach the choice of location and arrangement of the establishment correctly. It is not recommended to rely entirely on yourself - it is better to use the experience of specialists: a lawyer, an architect, an interior designer, and so on. If you already have a business in this area, it will be much easier for you; if not, you will have to devote a lot of time to studying the features of the tourism business, starting with the basics.
Where is it profitable to open a guest house?
Of course, it is most profitable to open a guest house in regions with a developed tourism industry: on the sea coast (resorts of the Krasnodar Territory), near the federal highway, near nature reserves of national importance, etc. However, there are no strict restrictions on its location. Even if the locality where you live is not a busy tourist center, there are hotels in it, therefore, a guest house here may well become a profitable enterprise. The easiest way is to purchase or rent a plot for construction in rural areas.
In many regions you can find suitable options for almost nothing. True, a lot will have to be invested in construction or repair, arrangement and equipment. If previously guest houses were a cheap alternative to hotels and did not have a high level of service, now the situation is slowly but surely changing.
Thanks to reduced tax rates, no need to hire a large staff and, in general, lower costs compared to hotels, guest house owners can invest more in the design and equipment of rooms, improving the conditions of stay for vacationers. Before choosing a place to open a guest house, conduct your own market research. To do this, you don’t need to be an expert at all, just look at the situation through the eyes of your potential clients.
Features and advantages of guest complexes
Among the invaluable advantages of a guest complex as a business is the peculiarity of the category of clients who use this service. As a rule, these are established, wealthy residents of large cities with a high level of solvency. Thus, soon after the opening of such a complex it will pay for itself and begin to generate a stable income.
On video: Features of the hotel business, pitfalls
Another plus in opening a hotel or guest house is that the requirements of all government services in relation to such an enterprise are lower than for classic hotels, which means that the establishment of such a business will require significantly less investment. The main thing that the owner of a guest complex can benefit from is the greater level of comfort that small, comfortable houses can provide compared to large and noisy hotels.
True, it is important to take into account a certain disadvantage of guest houses - their seasonality: they are most popular during the holiday period, mainly from May to September, in other months the profit will be much lower.
The main conditions for ensuring a comfortable stay for guests, thanks to which the guest complex will be competitive, are the following:
- location in nature (ideally, on the seashore or other body of water with equipped beaches, in a forest or mountains);
- organization of leisure activities for guests. So, you can offer excursions, introduce horseback riding or interesting walking routes, etc.;
- provide guests with Internet and convenient transfer.
Nutrition is one of the most important features that affects the success of a future enterprise. Guests should be offered a tasty and varied menu so that their vacation will be remembered only for positive moments.
How to determine the profitability of a guest house
First you need to draw up a detailed business plan for the guest house. Even if you have your own plot of land in a suitable location and a capital building that does not require repairs, even if you plan to make do with your own funds and not take out loans, you will still need a business plan, which will become a kind of step-by-step action plan, cost estimate and forecast expected profit.
Make a list of the necessary documents that you need to obtain before opening your guest house: a certificate of state registration as an individual entrepreneur, documents confirming your ownership of the house and land, etc. If at this stage you have nothing but money and dreams of owning your own hotel business, you need to decide whether you will purchase a suitable property or build it from scratch.
There is no clear answer to this question. If you have a ready-made building for a guest house, your costs at the first stage will undoubtedly be lower. However, you will still have to spend money (and quite a lot) on repairs, redevelopment, additions, etc. In addition, you need to take into account that when converting an ordinary residential building into a guest house, you must comply with a number of requirements in accordance with building codes and regulations (SNiP), sanitary standards (SanPiN), departmental building standards (VSN).
When building a building from scratch, with the help of an experienced architect, you will be able to competently plan the area of the guest house, effectively using every square meter, and avoid many annoying mistakes that will darken the lives of your guests. Such possible shortcomings include, for example, windows facing a courtyard or a brick wall, a room located near the kitchen, etc.
The number of rooms in guest houses usually does not exceed ten. Moreover, at least half of them must be double rooms with the possibility of organizing an additional bed there (put a bed or folding bed). The other half of the rooms will be single (preferably also with the possibility of expanding by at least one bed). It is unprofitable to make rooms for a larger number of people: they take up too much space, which is already limited, and are in less demand than cheaper single and double rooms.
Business registration
Before registration, the urgent question arises about choosing the organizational and legal form for the hotel. You will have to choose between individual entrepreneurs and LLCs. Each has a number of advantages and disadvantages, but for a mini-hotel, individual entrepreneurship will be preferable. The main reasons for this are the simplified form of opening and, most importantly, closing a business, as well as reduced taxation and penalties.
The hotel business does not require a license, so registering an LLC only makes sense if the hotel will sell alcoholic beverages. At the same time, food services are not required for mini-hotels at all, or they can be provided by other enterprises. The practice of operating a restaurant at a hotel that has no legal connection with the hotel is widespread and justified.
To register an individual entrepreneur you will need:
- Prepare documents (copy of passport and registration application).
- Pay the state fee for registration.
- Submit documents to the tax office.
- Obtain a registration certificate and state statistics codes.
- Make a seal.
- Open a current account.
Interior features of a mini-hotel
Carefully consider the interior of your mini-hotel, calculate the required amount of furniture, household appliances, plumbing fixtures, textiles, dishes, cleaning products, etc. Each room must have at least one window (a metal-plastic one that opens for ventilation or a regular one, but with a window) and a bed (a single bed measuring at least 80 by 190 cm, and a double bed measuring at least 140 by 190 cm). Windows must be equipped with mosquito nets.
It is recommended to take at least two and a half times more bedding sets for a guest house than there are beds. They change, as a rule, once a week. In addition, you need a large supply of towels and hangers for outerwear. For furniture, you will also need a wardrobe plus a bedside table or coat hanger, a mirror, a table lamp or floor lamp, a table, a chair and/or an armchair. For household appliances, depending on the “status” and price category of the mini-hotel, as well as the region, you will need a split system or air conditioning (in budget options - a fan) and a TV for each room.
Showers and toilets, as a rule, are shared in a guest house - in each room or on the floor. Of course, all these rooms must be equipped with a good ventilation system. Recently, mini-hotels have installed showers rather than bathtubs with showers. On the one hand, this option is cheaper and more practical. On the other hand, the service life of a shower stall is shorter - it often breaks down. Therefore, the option with a bath, shower and a closing plastic curtain is more preferable.
You will also need to purchase everything you need for the kitchen:
- washing,
- plate,
- kitchen table,
- chairs,
- fridge,
- wall cabinets and shelves,
- dishes,
- inventory,
- cutlery,
- detergents, etc.
If possible, it is better to equip the dining room in a guest house separately from the kitchen in a non-passable room or in the courtyard (with a canopy from insects). Don't forget about office space, including laundry (its services may be paid for for your guests).
As for the help of a specialist to draw up an interior design project, it certainly won’t hurt. However, unlike an architect, you can do without the services of a designer if you have taste and a general understanding of different styles. Pay attention to detail and give preference to materials that are easy to clean.
For example, it is more advisable to use laminate, cork or wood flooring in light shades rather than carpet as flooring in rooms. You can lay a rug or runner near the bed. No matter how beautiful tablecloths and curtains made from natural materials look, it is better to give preference to more practical and durable textiles with the addition of synthetic fibers.
The issue of providing your guests with food deserves special attention. Most guest houses only offer their clients breakfast, which is included in the room rental price. As a rule, such breakfasts include a hot drink (tea, coffee, cocoa), light snacks and desserts. For lunch and dinner, residents of guest houses go to nearby canteens, cafes and restaurants. Sometimes they have a kitchen at their disposal (in the house or in the yard - summer) with all the necessary equipment, dishes and appliances (stove, microwave, toaster, blender, etc.). Vacationers can purchase groceries in stores and cook their own food in the kitchen.
Guest houses that emphasize a “homey and comfortable atmosphere” may also offer home-cooked lunches and dinners in addition to breakfast. Of course, we are not talking about choosing dishes from the list, however, the owners can take into account the wishes of their guests for the daily menu.
The cost of three hot meals a day in such a guest house ranges from 500 rubles per day for an adult and from 250 rubles per day for a child. Experienced entrepreneurs advise charging separately for food and accommodation. Not all of your guests will have time for lunch or dinner, and not everyone will like the food you offer. With split payments, you give your customers choice and reduce your own worries.
Selection of premises
Choosing the right premises for your future hotel is already half the success. It is better for a mini-hotel to be located in the business or cultural center of the city, so that the infrastructure around it is developed. Availability of transport is also very important, because not all guests will use taxi services.
It is also possible to choose a quiet residential area for a hotel, but then the main competitors will be apartments for daily rent, to which hotel rooms often lose out, unless a person is focused on impeccable service. The only reasonable option for a residential area would be to place a hotel in an apartment. However, finding a premises of the required size can be problematic, then you will have to buy several apartments, arrange large-scale redevelopment and deal with many authorities that will set the goal of slowing down the process or even try to prevent the opening of a business. In addition, such a hotel may not always have good neighbors. Accommodation in a residential building is an additional risk, because all the everyday problems of your neighbors will become your problems. Broken pipes, insects and gas leaks from neighbors - all this can cause harm to your guests, employees and property, and absolutely nothing will depend on you.
Based on this, it is better to give preference to free-standing buildings. If it is not possible to build it, you need to buy it. It is not justified to rent hotel premises, unless it is a long-term lease with the option to buy. Large financial investments will take years to pay off, and a short-term rental contract does not guarantee that the premises will be yours all this time.
The ideal option would be a building originally built as a hotel. You can do without redevelopment and limit yourself to repairs only. If the premises have historical value, then it is possible to leave everything “as is”, just do a general cleaning and bring in the furniture. Of course, such a hotel will be very specific, but there will always be those who like to touch history, even if it is expressed in peeling paint on the walls.
An important point: it is at this stage that it is necessary to decide whether the hotel will undergo certification and receive stars. This procedure is not mandatory; for mini-hotels it has little justification, but you need to think about it when choosing a room. After all, the assessment of a hotel’s “star rating” begins with the area of public premises and rooms. However, taking into account all the necessary infrastructure, it will be problematic to achieve a level above 3*.
Pros and cons of opening a bar in a guest house
If everything is more or less clear with nutrition, then with alcohol everything will not be so simple. If you are going to sell alcoholic beverages on the territory of the guest house, you will have to obtain a license to sell alcohol. The license itself costs 40 thousand rubles. But you won’t be able to sell alcohol without a bar or restaurant.
Therefore, it is necessary to conclude an agreement for sanitary maintenance of the premises (up to 50 thousand rubles per year), an agreement for disinfestation and rodent control (treating premises from insects and rodents will cost up to 200 rubles per month), an agreement for garbage removal and disposal of fluorescent lamps. At least another 150-200 thousand rubles will have to be spent on ensuring a supply of alcoholic beverages in your catering establishment.
When your guest house is ready to receive guests, you will need to obtain expert opinions from various departments (Rospotrebnadzor, Gospozharnadzor, etc.). Their representatives will visit you regularly for inspections, so it will not be a bad idea to have good connections with the inspection authorities.
One of the most important points is the selection of staff for the guest house. To maintain a small guest house, you will need a manager, an administrator who will be responsible for accommodating guests, consulting over the phone and the Internet, booking and selling rooms, a cook, and a maid (cleaning lady).
Of course, at first, some of these responsibilities can be performed independently and with the help of relatives. A guest house is the best option for a family business. In fact, to resolve all current issues and ensure the smooth operation of the mini-hotel, no more than 3-4 people will be required, not counting the accountant and visiting workers (electrician, plumber, etc.). Make sure that all staff and the owners of the guest house themselves have health certificates.
Staff
At first, the responsibilities of a guest house administrator can be performed by the business owner. Hire a special employee when there are more guests and presence in the house around the clock becomes necessary. You will also need the services of a cleaner, plumber and electrician. And if cleaning must be regular, then turn to the help of specialists on occasion.
- Administrator - 20,000 rubles
- Cleaning lady - 15,000 rubles
- Unforeseen expenses - 10,000 rubles
- Total - 45'000 rubles
Hire an administrator and a maid for the first time, expand the staff as needed
Costs of maintaining a guest house
Costs largely depend on its operating mode. If your mini-hotel is located in a resort area, then it will operate seasonally - from April-May to October. If it will accept guests all year round (and/or you yourself will live in your guest house), immediately factor in heating costs, which can amount to up to 100-150 thousand rubles per month, depending on the region, climatic conditions and heating method .
Other monthly expenses include utility bills, payments for telephone and Internet (if any), tax deductions, employee salaries (irrelevant for a family business), consumables (toilet paper, napkins, garbage bags, household chemicals, office supplies, etc. .).
How to attract guests to your guest house and turn them into regular customers?
- Try to provide your guests with maximum convenience. Doing this is not at all as difficult as it seems. Make sure there is a parking space for vacationers' cars. It is advisable to equip it with a canopy to protect it from rain and snow.
- A parking space can be either free or paid (from 40-50 rubles per day). Take care of the cleanliness of the surrounding area. This applies not only to your garden or yard, but also to the entrance to it. Don't forget to keep your driveway clear of dirt, ice, and snow. If possible, it is better to pave it.
- Tidy up the courtyard. Ideally, it should be turned into a garden, with gazebos with barbecues installed and a playground equipped. Buy sports equipment and board games. You can either rent them out to vacationers or provide them for free. It is also worth forming a library, albeit a small one, and also subscribing to major news publications.
- Transfer for your guests is also of great importance. Transport services can be provided either independently or with the help of a hired driver. But do not forget that if the driver you hire does not have a license for passenger transportation, then you, not he, will be responsible for the safety of his passengers. If you have your own transport, you can also conduct excursions for your guests.
note
: according to the Federal Law of December 27, 2002 No. 184-FZ “On Technical Regulation”, certification of tourism services is voluntary. This means that if you do not have tour certificates, you will not pay any fines or be subject to other sanctions. However, despite the absence of a requirement in the laws, most travel companies still try to certify this activity.
The fact is that the presence of a certificate gives visitors to the guest house more confidence that the services will be provided at a high level. Think about what you can offer people besides accommodation: fishing, hunting, horse riding lessons, sauna, swimming pool, trampolines, etc. All these services can become an additional source of income and will increase the profitability of your business. If you yourself cannot or do not have time to conduct excursions for your guests and organize their leisure time, negotiate with third-party organizations - travel agencies, tour guides, amusement parks, etc. Such cooperation will be beneficial to both parties.
Design and renovation of premises
The design of the hotel must fully correspond to its theme and concept. If you decide to create an eco-hotel, you should make sure that all finishing materials are natural, as well as the furniture. If you are inspired by the ideas of minimalism, remember that there should not be less than the required list of items in the room - even if the bedside table does not fit into the concept, its presence is prescribed by GOST.
An original solution for mini-hotels - an individual theme for each room. However, such an interior will require more work, because each room is a new design. In this case, the designer’s services will cost much more.
Is it possible to think through a design without involving professionals? It is possible, but for this you need to have a sense of style, a clear idea of the future interior and specialized programs. Luckily, some design programs have free versions that can be found online. It usually takes no more than an hour or two to master basic skills: repainting walls, arranging furniture. You will spend much more on finding the necessary elements, such as seamless wallpaper of the desired shade, flower pots, etc. The result of many hours (most likely even many days for a beginner) of work will be either a ready-made design, from which you only need to buy everything you need and bring the picture to life, or frayed nerves and a firm decision to turn to a professional designer.
How much money do you need to organize a guest house?
For a mini-hotel with five rooms that can accommodate up to twelve guests at a time, a minimum of 1.5-2 million rubles will be required. Most of these funds will go towards renovating the premises, providing the necessary communications, purchasing furniture, etc. About 25% of this amount will go towards improving the surrounding area. You shouldn’t count on a quick payback, especially if your guest house operates seasonally. If the guest house is at least 60% occupied (which is quite good for a start), the costs can be recouped within 2.5 years.
If you are opening not just a guest house, but a mini-hotel with 20 rooms (total number of places to stay - 30 people) with a guarded parking lot and all the necessary infrastructure with a total land area of 700 sq. m. meters, then your expenses will be from 15 million rubles. To maintain such a complex, a staff of seven people will be required. The payback period for such a guest house increases to 3.5 years.
Sysoeva Liliya (c) www.openbusiness.ru - portal of business plans and guides for starting a small business
14.09.2018
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Definition of a Guest House in accordance with the law
Guest house - what is it according to the law? A guest house or rural guest house is a collective accommodation facility in a rural area or small town, characterized by a small number of rooms, aimed at families. Tourists not only live in the guest house, but also eat and relax. The number of numbers does not exceed 10. This definition can be clarified in GOST 56641-2015.
In practice, guest houses and mini-hotels are no different. These accommodation facilities are also called rural estates, agrotourism farms, houses of hunters and fishermen, and bungalows. There is no fundamental difference between them, and the choice of name is often based solely on the wishes of the owner. Many rightly believe that for certain categories of tourists the name “home” sounds more attractive than “hotel”, because it evokes pleasant associations with comfort and a relaxed atmosphere.
All mandatory requirements for hotels in Russia are listed in the annex to the order of the Ministry of Sports dated May 7, 2010 No. 461. Most of the provisions of the above state standard for guest houses are advisory in nature:
- access roads for cars, as well as pedestrian paths;
- fenced area;
- division into economic and recreational zones, different entrances to the zones;
- inside the guest house there is information for tourists about local attractions, public transport operating hours, as well as rules of behavior and information for emergency situations, evacuation plans;
- all premises are equipped with artificial lighting, cold and hot water supply or the possibility of heating water, heating, and publicly accessible means of communication.
The guest house has a small number of rooms and an informal atmosphere
Interior and staff
Having completed all the preparatory issues, you can move on to creating the concept of your establishment, creating the interior and exterior design. Don’t forget that if you have reconstruction or redevelopment ahead, sometimes it costs half the cost of the property itself, so realistically evaluate your capabilities. In addition, these procedures will also require certain approvals.
Even if you have to decide such a question as how to open a hotel in a private house, you should always remember that it must be recognizable. An excellent option would be to build a separate building, in the design of which you yourself will include all the necessary premises and interior features - columns, pools, attics.
Important: it will be necessary to invite the SES and the fire service exactly when the main stage of construction alterations is completed and all communications are connected.
Room decoration
Of course, there is no single approach to interior design. It all depends on the personal preferences of the owner. Only one point remains important - quality. The rooms may not be particularly luxurious, but they should be cozy, clean, tidy and kept in perfect cleanliness.
What you shouldn't save on:
- plumbing;
- furniture;
- bed sheets;
- curtains.
The last two points are the hotel's calling card. Cheap washed towels in a room trimmed with gold will not earn a good reputation.
Staff selection
The next important issue is personnel. They need to be taken care of long before the opening, since by this memorable day all hotel employees must be properly registered and trained. As for their number, here you need to adhere to the general rule - the total number of staff (administrators, maids, receptionists) should be equal to the number of rooms.
The variety of positions will depend entirely on the services that will be provided at the hotel.