Is it possible to make a hostel or hotel in a non-residential building? | Moscow

The hotel business has always been an effective option for aspiring entrepreneurs to start their own business. City guests, students, tourists and other categories of non-resident citizens who cannot afford a hotel will readily check into a hostel. Minimum initial costs and high demand are well-founded criteria for starting a successful enterprise.

• Documents required for registration
• Target audience of hostels
• Basic requirements for the premises
• How to organize a hostel in an apartment or private house?
• Renting premises for a hostel
• Furniture and equipment for a hostel
• Hostel staff
• Marketing and advertising of the property
• Ready-made business plan for opening a hostel

What is a hostel

Hostel is an accommodation system that provides a guest (usually for a short period) with a bed in a room for several people. A hostel is the most affordable alternative to hotels and apartments for daily rent. Hostels are found all over the world and have made travel and travel to other cities more affordable for students, young people and the middle class. Most hostels are located in the USA and Europe, but in the last 10 years hostels have been actively developing in Russia.

The first hostel appeared in Germany more than 100 years ago, in 1909. It was founded by schoolteacher Richard Schiermann, who took students from poor families out of town on weekends. At first, schools were used for overnight stays, and then the idea of ​​budget accommodation for young people on a permanent basis emerged.

The hostels are quite comfortable for their price category: clients are provided with a bed, a small wardrobe/bedside table for storing things, a common area and a shower/toilet shared with other guests and breakfast. The number of people in one room varies from 4 to 10.

Why a hostel is the best investment

The well-known rule of success says: “If you want to be rich, work for the poor.” Inexpensive goods and services, due to their mass availability, can bring more profit to an entrepreneur than business-class goods and services. This principle also works for hostels.

Prices for a standard hotel room can range from 50-200 dollars, and in some large cities (for example, Moscow) there are no cheap hotels at all. Hostels solve the problem of temporary accommodation for millions of visitors: they are inexpensive, provide a decent level of comfort and are located in the center.

A hostel is an affordable accommodation option and a promising business option in a big city. To open a hostel, you don’t have to rent or buy expensive premises. Often mini-hostels are opened in ordinary apartments on the lower floors of high-rise buildings. This is a promising business for large cities.

Possible risks

When doing business, the following risks are possible:

1. Tightening of legislative norms. In this case, it is necessary to carefully resolve organizational issues. This leads to additional expenses.
2. Emergencies, accidents. This leads to damage to property and suspension of work. Insurance will help in this case.
3. Increased competition. It is necessary to form a customer base, create special offers, provide additional services, and improve quality. This problem reduces income, profitability, and reduces the number of clients.
4. Seasonal fluctuations in demand.
5. Unfavorable location. It is necessary to conduct geomarketing research. The problem leads to a decrease in the number of clients and a decrease in income.
6. Low qualifications of employees. It is necessary to hire experienced specialists. You can also assign training to them. The problem causes customer dissatisfaction and reduces the potential of guests.
7. Technological risks. It is necessary to repair equipment in a timely manner. New equipment must be purchased using a depreciation fund. Risk reduces the quality of service delivery.

These risks usually arise for all beginning businessmen. Proper management of your activities will prevent them from happening. And if problems arise, it is necessary to eliminate them in a timely manner.

What amount to start with?

If you don’t buy a premises, but rent it, entrepreneurs can spend 1–1.5 million rubles at the start. To start in a non-residential property, more money is required: according to hoteliers, about 5 million rubles. You can roughly calculate the costs of a hostel by multiplying the number of square meters by 16,000 - 18,000 rubles. A small start-up capital for opening is another argument in favor of opening a hostel.

The monthly net income (minus expenses) from a small hostel with 20-25 beds can be 50-100,000 rubles. Detailed calculation is given below.

Case of an investor who opened his first hostel at the age of 12:

Business relevance

Despite fluctuations in the national currency, changes in geopolitical vectors and crisis phenomena, the real estate market remains a profitable option for investment. On the one hand, the cost per square meters is gradually decreasing against the background of the devaluation of the ruble. On the other hand, the price of rental housing is quite high, since in Moscow, St. Petersburg, Saratov, Kazan, Yekaterinburg, Perm and other large cities of Russia, students, tourists, and business travelers need temporary shelter. Opening a hostel is a fairly profitable idea, the implementation of which can build a stable and successful business. But it has certain pros and cons. Let's look at them in more detail.

Video on the topic:

The relevance of mini-hotels during a crisis. Round table for managers

Is it profitable to invest in hostels?

Hostel business plan

The hostel business plan takes into account costs (one-time and permanent) and expected income. The ratio of costs and income will allow you to calculate the benefits of investing in a hostel and the payback period for the investor’s investment.

One-time expenses:

• costs of purchasing the premises (if it is purchased as property),
• costs for repairs and redevelopment,
• purchase of furniture and equipment,
• costs for processing documents.

Fixed expenses:

• rental cost (for rented premises),
• communal payments,
• salaries of employees, including outsourced ones (cleaners, accountant),
• advertising expenses,
• consumables and other expenses.

Here is an approximate distribution diagram of fixed costs:

One-time expenses depend on many factors: first of all, on the city, the size of the premises and whether it is purchased or rented.

Is hostel a risky business?

Realists advise underestimating the possible risks of entrepreneurship, especially for those who are “bewitched” by the hostel business idea. It’s one thing when a group of tourists who have known each other for a long time move in, or if the clients are quiet retired travelers. It’s a different matter when we are talking about the most diverse public, in which there are malicious violators of internal regulations.

“My wife dreamed of opening a quiet family business and thought of clients as relatives who also paid extra for their overnight stay,” writes a forum member with the nickname wehrtan#. “In reality, she got a headache in the form of restless guest workers.”

Common problems include vandalism, conflicts between clients, and problems in relationships with residents of the building where the hostel is located.

As a business project, a hostel is rightly considered a reliable and profitable business. Moreover, this is the 21st dynamic century with growing tourist flows from year to year, rapid labor migration and increasing business contacts. There are more people in need of inexpensive daily accommodation every day.

However, in order not to make mistakes, you need to carefully work out the hostel business plan. This is what experienced entrepreneurs advise.

How to calculate income

Planned monthly income = number of beds*average price of a bed per day*hostel occupancy*30 days.

Let's do the math using a hypothetical example: a hostel in a city with a population of over a million in a rented four-room apartment.

The average price for a bed in Russia is approximately 500 rubles per day. If the hostel has 20 beds and the planned occupancy rate is 80%, the monthly income should be approximately 500 * 20 * 0.8 * 30 = 240,000 rubles.

Monthly expenses:

1. 2 administrators, 2 cleaners and an accountant (salary) = 90,000 rubles
2. payment of rent and utilities: 60,000 rubles.
3. advertising and other expenses: 20,000 rubles.

Total – 170,000 rubles

Net income per month will be 240,000 – 170,000 = 70,000 rubles.

Income can be increased through additional services:

• Washing clothes,
• Minibar and snacks,
• Safe rental,
• Wi-Fi

Hostels usually provide board games and TV for free.

As former New York City Mayor Rudolph Giuliano said, “If you take care of the little details, the big problems will take care of themselves.” In a hostel, it is important to think through all the little things: the impression of the guests will largely depend on them.

If at the start the expenses amounted to 1 million rubles, the payback period of the business will be 1,000,000/70,000 = 14 months. This is a good indicator for small businesses. The average profitability of hostels in Russia is now 20-40%.

When drawing up a business plan, be sure to take into account different scenarios. At first, income from the hostel may be lower than planned. You can increase your income through participants in conferences and other mass gatherings, as well as through competent advertising.

Hostel in an apartment?

Most hosteliers start by renting apartments or detached private houses. This is the easiest way if you manage to establish contact with neighbors in other apartments. Formally, this procedure is not necessary if permission to open a hostel has been obtained by law. However, practice shows that collective complaints and the lack of regulation of a number of issues in regulations can complicate the work of the hostel. So it’s better to learn how to negotiate with the residents of the house.

A good example of how to open a hostel in an apartment is the experience of the owner of the Bear Hostels chain, D. Mishin, which he shared in an interview with Forbes.

In 2008, after analyzing the Moscow market, the entrepreneur realized that the 6 hostels operating at that time were nothing for the 2.5 million foreigners who annually arrive in the capital.

He opened the first hostel in a rented apartment with an area of ​​120-130 m2 for 70,000 rubles. per month.

Renovating the apartment and bringing it into compliance with the project cost more than 1 million rubles. There wasn’t enough money for furniture, so creativity came to the rescue: multi-tiered used beds were purchased from a supplier of equipment for prisons. They painted over the inscriptions on them and placed them in the hostel.

In 2011, a place in Bear Hostels cost 650 rubles. per day. Today – from 450.

From the very beginning, activities were carried out strictly according to the law. Agreements for long-term rental of apartments were concluded through Rosreestr. The tax regime is the simplified tax system “income minus expenses”. Currently, hosteliers successfully use other taxation options: simplified tax system 6%, UTII (depending on the list of services for guests).

How to open a hostel: step-by-step plan

A step-by-step plan on how to open a hostel includes the following steps:

1. Demand analysis . There is no point in making a hostel in a city with a population of 10,000 people. In the capital and in cities with a population of over a million, hostels are in demand, but here too you need to carefully analyze the demand: who books hostels, what they pay attention to when choosing, how much guests are willing to pay for a bed.
2. Analysis of competitors : how they work, where they find clients, how much their services cost, what are their advantages. Competitors include not only other hostels, but also mini-hotels and apartments for daily rent. Your offer must be competitive. Carefully analyze your competitors' websites and advertising channels. You can go and see a competitor's hostel under the guise of a client.
3. Selecting a location and searching for premises . The choice of location is a key factor in the success of this business. Almost all hostels are located in the city center. But “center” is a flexible concept. Sometimes similar properties on neighboring streets may show different financial results. It is important to understand who your clients are (young people, conference participants, tourists) and why they came to your city. Based on this, it is important to choose the right place so that guests can conveniently get where they need to go.
4. Obtaining approval from inspection authorities, collecting documents, concluding a rental agreement/purchase of premises. Hostels are often built in rented premises . It is important to correctly draw up a rental agreement with the owners, as well as a bed rental agreement with clients. Don't skimp and hire a professional lawyer. Otherwise, you can invest 400-500,000 in renovating the premises and be left with nothing if the owner “suddenly” changes his mind about renting it out to you. If you do not have an individual entrepreneur or a legal entity, you need to fill out all the paperwork, choose a taxation system, and collect the necessary documents. We'll talk more about this below.
5. Repair and purchase of furniture . The hostel should have several toilets and showers, as well as a kitchen area and a spacious living room where guests can spend their free time. Bedrooms in hostels are usually equipped with bunk beds. It is also important to provide each guest with a small closet for storing things. You don’t need to buy expensive furniture or choose exclusive finishing materials, but you need to make the room look attractive to guests. This is called investor renovation.
6. Start of an advertising campaign . When the hostel is almost ready, you need to inform all potential clients, add the hostel to Google Maps and especially to specialized applications in which people are looking for temporary housing. It’s better to test different advertising possibilities (with a small budget to begin with) and hire a competent marketer who will conduct an advertising campaign.
7. Hiring . Simultaneously with the start of an advertising campaign, you need to hire staff. At a minimum, these should be 2 receptionists working in shifts, cleaners, and an accountant. Cleaning services and accountants can be hired from outside.
8. Hostel launch . When everything is ready, all that remains is to open the doors of your hostel for the first guests. Offer them discounts, bonuses or memorable gifts to celebrate the opening. At this stage, it is important to connect word of mouth and get positive reviews about the hostel on booking sites.

Typically, launching a hostel, including renovations and purchasing furniture, takes 2-3 months.

Hostel staff

The main hostel staff are the administrator and maids. The first one receives guests, places them in rooms, books rooms, answers phone calls - in general, conducts administrative work. It is advisable to hire girls with a reserve of natural charm and knowledge of universal English.

Maids clean rooms, hallways and common areas. All employees must be friendly and sociable. It often happens that, having been left with a good impression of the hostel, tourists then advise their friends and acquaintances to stay there.

That's all. As you can see, there is nothing complicated about how to open a hostel. The main thing here, as in any other business, is your desire and perseverance. And then you will definitely succeed!

Where to open a hostel

Location plays a huge role for any hostel. As English folk wisdom says, “There are three criteria for assessing real estate: firstly, its location, secondly, location, thirdly, location.” Most hostels are located in the city center, close to the metro and other important transport links. It is important to understand who your main clients are and, based on this, decide where to open a hostel.

There are two main categories of hostel guests:

1. tourists (mostly young people)
2. conference participants/people in town on business.

If the hostel is aimed at tourists, it should be located near the main tourist routes.

If you are planning accommodation for conference participants, it should be located close to the city's business center and conference rooms.

In any case, good transport accessibility is important so that you can easily reach any part of the city from the hostel.

Advantages and disadvantages

This type of business has the following advantages:

1. High demand. This aspect depends on the attractiveness of the region and the location of the hostel. But with a careful analysis of tourist routes and choosing the right place for a mini-hotel, you can quickly get good profitability.
2. Regular customers. A properly created marketing strategy and high service will allow you to gain regular customers.
3. Possibility of high income. Competent business management allows you to earn high profits.

The disadvantages include:

1. High competition. But this also indicates a great demand for the service. Therefore, with a correct analysis of the competitive market and offering quality service, you can take a worthy place in the market.
2. Large start-up capital. Large investments are needed, without which a hostel cannot be organized. Large expenses are required to rent or purchase premises, repairs, purchase furniture and equipment.

How to open a mini hotel

A mini-hotel differs from a hostel in the presence of separate rooms for each guest or couple/family of guests. Typically, a mini-hotel is located in a separate building and has no more than 30 rooms. There may be a shower in each room, as in a regular hotel, or there may be several showers and toilets in common use. Mini-hotel rooms are usually equipped with a microwave; There is often a shared kitchen.

A mini-hotel is a more “advanced” and expensive version of a hostel with an increased level of comfort. Such hotels are not aimed at young people, but at middle-aged and older people, business travelers and married couples.

Premises for a mini-hotel can be rented, built from scratch, or used from existing premises. Each option has its own advantages and disadvantages. Before opening, it is also important to calculate all income and expenses and draw up a business plan.

You can follow the same plan as when opening a hostel, but take into account the features of mini-hotels:

• more opening costs
• more income (due to higher prices per guest)
• different target audience.

Basically, the algorithm for opening a mini-hotel and a hostel is almost the same.

Definition of hostel

First you need to clearly define how this format differs from the usual hotel. A hostel is an economy version of a hotel, more like a comfortable hostel with room cleaning, and in some cases, breakfast included. The advantage of this format is its affordable cost.

Such accommodations are popular with students, low- and moderate-income people and travelers looking to spend their money on sightseeing rather than a hotel.

Initially, a hostel is an apartment for overnight stay. But the market situation is changing, competition is emerging and owners are trying to stand out from the crowd. Now the hostels have Standard and Suite rooms with a private bathroom, as well as relaxation areas, bicycle rentals and other entertainment.

Note! Despite all the improvements, the hostel remains a budget accommodation option, so you shouldn’t try to turn it into a mini-hotel - this is a different format in the hotel business.

Business meeting

What is needed to open a hostel: review of legislation

When opening a hostel, special attention should be paid to legal requirements. The first hostels in Russia began to appear in Moscow and St. Petersburg in 2007, but until 2015 there was no definition of a hostel in Russian legislation at all. Anyone could set up a small hostel in their apartment by simply sending a registered letter with notification to Rospotrebnadzor. Additional permits were required only in case of redevelopment of an apartment into a hostel.

On January 1, 2015, the “General Requirements for Hostels” regulation (GOST 56184-2014) came into force. He defined a hostel as “An economical accommodation facility, intended for temporary accommodation, mainly for low-budget tourism, having rooms/rooms of varying capacity and bathrooms, usually outside the room/room, as well as premises (areas, places) for guests to communicate.”

This regulation established requirements for hostels (although some of them are advisory in nature).

Primary requirements:

• The total area of ​​the living room for one bed (single-tier or two-tier) is at least 4 square meters. meters. That is, in a room of 20 square meters. meters you can place 5 regular or bunk beds (5-10 beds).
• For every 15 beds there must be at least 1 shower and 1 toilet
• It is necessary to have a common area for guests to relax and socialize
• Hostels can be either mixed or separated by gender (male and female)

There are also a number of additional requirements (ceiling heights, procedures for cleaning, changing bed linen and garbage removal, requirements for personnel, safety measures, lighting standards, etc.). Fulfilling these requirements allows you to create a comfortable hostel, not a rooming house.

The regulations also introduced a classification of hostels based on the number of beds:

1. up to 25 – mini-hostels,
2. from 25 to 50 – small hostels
3. from 50 to 120 – large hostels

Since 2021, Russia has launched a campaign against hostels. Deputies prepared and passed in the first reading a bill that significantly limited the opportunities for hosteliers in apartment buildings and actually forced businessmen to leave this market, because 75-80% of hostels in Russia are located in apartment buildings. Most often they are made on the first floors, but formally no one forbade making a hostel on the sixth floor of a nine-story building. This is often not liked by other residents. Therefore, the bill proposed significant tightening of existing laws:

1. mandatory transfer of an apartment for hostel use from residential to non-residential
2. the ability to make a hostel only on the first floor (or on the second, provided that there are non-residential premises on the first floor)
3. It is mandatory to have a separate entrance to the hostel (not through a common entrance)
4. written consent of all residents of the house

It is impossible for most hosteliers to meet these conditions, so the adoption of the law meant their withdrawal from the market. The opinions of officials on this issue were divided: some spoke about the need to protect the “long-suffering” residents of the house from greedy hosteliers, others said that hostels solve an important problem with temporary accommodation, meet the needs of the market and help develop tourism in Russia. After pickets against the adoption of the law, its further consideration was postponed.

Now, formally, hostels can be placed in residential premises without a separate entrance and without the consent of the residents of the house/entrance. At the same time, Rospotrebnadzor can close any hostel if complaints are received from residents of the house. The reason for closing can be anything: for example, the lack of an emergency exit from the premises.

In 2021, a bill to ban hostels in residential buildings was again introduced into parliament. Hostel owners are ready to regulate the market, but it is not yet clear in what version (soft or hard) the new law on hostels will be adopted - and whether it will be adopted at all.

Basic requirements for the premises: is it possible to open a hostel in non-residential premises?

To organize a hostel, it is not at all necessary to use a house or apartment: it is enough to find a non-residential building with separate rooms, corridors, foyers, and bathrooms.

In this case, a non-residential building must meet certain requirements:

• Firstly , a basement or rooms cannot be used for a hostel. Having no windows.
• Secondly , the number of toilets and sinks in a hostel should be calculated in the following ratio - 1 toilet for 12 people, 1 shower for 15 people, 1 sink for 6 people.
• Thirdly , the hostel should have a kitchen with a stove and kettle.
• Fourthly , the bed in the hostel must have dimensions of at least 190*80 cm, and the distance between the beds must be 75 cm.

In addition to everything, non-residential premises must have a heating system (steam, gas, electric) and ventilation. Non-residential premises are usually used to create large hostels.

Documents for opening a hostel

Before opening a hostel, you need to register an individual entrepreneur or legal entity. Typically, entrepreneurs choose individual entrepreneurs: this path is easier and faster. But if you plan to open a hostel together with business partners, you will have to register a legal entity, since an individual entrepreneur does not provide for the possibility of co-founding.

For hostels, OKVED codes 55.23.3 (“Renting out furnished rooms for temporary accommodation”) are provided.

After registering an individual entrepreneur or legal entity, you can prepare documents for opening a hostel.

The first inspection authorities for hosteliers will be the fire inspectorate and the sanitary and epidemiological station. Firefighter requirements for hostels are the same as for hotels and hostels. In the Federal Law “Technical Regulations on Fire Safety Requirements,” hostels are classified as functional fire hazard class 1.2. The security requirements here are more stringent than for ordinary residential premises.

Sanitary standards are set out in the regulations: we discussed them above. According to sanitary standards, hostels cannot be located in the basement and basement floors.

The issue of waste also needs to be resolved. By law, garbage is removed from the hostel at least once a day. The owner of the hostel must ensure that this requirement is met.

After resolving the issue with firefighters, SES and garbage removal, you need to inform Rospotrebnadzor. To do this, it is enough to send a registered letter - notification of the start of the hostel’s activities, with a notification of delivery and an inventory. The letter can also be sent electronically with the electronic signature of the applicant. Rospotrebnadzor can come to your hostel with an inspection.

If the hostel premises are not your property, the entrepreneur must enter into a lease agreement and write down all the nuances. The most important thing that should be spelled out in the contract is the right to provide accommodation services for guests in the rented space. The contract must be signed for the longest possible period and the conditions for its early termination must be clearly stated. Also in the contract, the owners must confirm their consent to register their guests with migration authorities.

List of documents for opening a hostel:

1. lease agreement or document confirming ownership of the premises;
2. conclusion of the sanitary service (SES) that the premises are suitable for habitation;
3. conclusion of the Fire Inspectorate on compliance with fire safety standards in the premises;
4. registration documents of an individual entrepreneur or legal entity.
5. contract for the removal of household waste.

When all the listed documents have been collected, the hostel is ready to accept its first guests.

RULING OF THE TWENTIETH ARBITRATION COURT OF APPEALS FROM CASE N A68-3408

By the decision of the Twentieth Arbitration Court of Appeal dated July 18, 2012, the decision of the court of first instance in case No. A68-734/2012 was left unchanged, while the court of appeal indicated that the right of economic management of the disputed object was registered with the municipal unitary enterprise of the Moscow Region of Tula "Skuratovskoe Housing and Communal Services" was not, then the owner’s powers over him were not transferred to the bankruptcy trustee.

In accordance with Part 6 of Article 23 of the Housing Code of the Russian Federation, if it is necessary to carry out reconstruction, and (or) redevelopment of the premises being transferred, and (or) other work to ensure the use of such premises as residential or non-residential premises, the document specified in Part 5 of this article must contain a requirement for their implementation, a list of other works, if their implementation is necessary.

We recommend reading: How to evict a person from a municipal apartment if he is registered in it

Risks of investing in a hostel

The main risks of opening a hostel:

1. Legislative ban on hostels in residential premises. If the bill is adopted, it will be impossible to create a hostel in an apartment building without transferring the apartment to non-residential use. The solution is to immediately buy or rent commercial real estate for a hostel.
2. Lack or insufficient number of clients. This risk is removed by competent testing of demand before the start of the project and a well-thought-out advertising campaign.
3. Problems with neighbors. Residents of apartment buildings often do not like the proximity to the hostel. Hostel owners need to be prepared to establish rules of behavior (such as no noise at night), and monitor cleanliness in and around the entrance.

The reliability of investments in a hostel is assessed by experts as quite high.

How to convert non-residential premises into residential ones if the administration does not want to do this

According to Art. 24 of the Housing Code of the Russian Federation Refusal to transfer residential premises to non-residential premises or non-residential premises to residential premises is permitted in the event of: 1) failure to submit the documents specified in Part 2 of Article 23 of this Code, the obligation to submit which is assigned to the applicant;

Hello! I have this question. My friends moved into a hostel in a non-residential room according to the order of the municipal institution, but they did not draw up a social tenancy agreement, because... the room at that time was non-residential. Then they made a redevelopment, turning it into a residential one. The redevelopment was done with the notification of this municipal institution, but the administration did not give permission. Now people want to conclude a social tenancy agreement, and for this they need to transfer the premises from non-residential to residential. The administration is dragging its feet, doesn’t want to deal with this matter, argues that people moved in without permission and did redevelopment without permission. The mayor’s office refers it to the administration. What should I do? Can I sue the administration? An expert's conclusion that the housing is suitable for living and the consent of the property owners to transfer to residential premises is available!

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.

Hostel as a business in Russia

Hostels are a profitable business targeting the fast-growing short-term rental market. There are about 1000 hostels in Moscow and St. Petersburg. The exact data is unknown, because some hostels are not officially registered. According to Rosstat, a total of 881 hostels were registered in Russia in 2021. Booking.com data differs from the official version: in September 2021, the popular portal offers 453 hostels in Moscow, 447 in St. Petersburg and 2,353 hostels throughout Russia. In April 2021, Booking offers 363 hostel accommodation options in Moscow for the coming days, that is, 90 options less than six months ago: perhaps some hostels are closed or there are no vacancies.

On the Airbnb daily housing rental website in Moscow and the Moscow region there are 13-15 thousand addresses available for daily rental. The market need in this region is to provide temporary housing for 8-10 million people per year. It is obvious that hotels cannot meet such high demand: in addition, many visitors cannot afford hotels in Moscow. In the regions, the niche of hostels, according to experts, is 20% - 40% of the hotel business.

The growing market for daily rental housing in large cities, high profitability and relatively small investments at the start make the hostel an attractive business project. But some entrepreneurs prefer not to create a hostel from scratch, but to buy it as a ready-made business.

Renting space for a hostel: how to avoid mistakes?

There is a range of mandatory requirements for premises suitable for organizing a hostel, which are enshrined in Russian construction legislation.

They are important to take into account for entrepreneurs choosing suitable premises for a hostel:

• Hostel sleeping blocks must have windows.
• Each sleeping place must be allocated at least 5 meters (this, however, does not exclude the possibility of installing bunk beds).
• If the bed has two tiers, then the ceiling of the first should be at least 75 cm above the surface of the bed.
• Ceilings in sleeping blocks must be at least 2.5 meters.
• The hostel should have a common area for relaxing and receiving guests.
• There must be a supply of drinking water in the hostel kitchen.

Ready business hostel

Opening a hostel is not an easy matter. The fire inspectorate and the SES can slow down the process, demanding that deficiencies be eliminated, and repairs, purchasing furniture and personnel training require not only money, but also time. An entrepreneur has a choice: open his own hostel from scratch or buy a hostel as an already operating business. In the second case, he receives a fully equipped premises with all the documentation and an establishment that already has a reputation, established advertising channels and clients.

Online promotion

There is no point in expecting a business to generate a stable income without prior promotion - an open hostel needs to be actively advertised. Thus, you will convey information about the establishment to a potential audience.

Traditional channels (print media, TV commercials, leaflets and flyers) are not suitable here. Advertising should be targeted, addressed to visitors and guests of the city who are looking for an inexpensive place to stay.

• Social network.
  The opening of a hostel from scratch is worth celebrating by creating the establishment’s own pages on Facebook, VKontakte, and Odnoklassniki. At the same time, your online activity is important - add friends and acquaintances, post descriptions of services with prices, list the establishment’s bonuses. Be sure to inform your potential audience about your location and provide a contact number. In the future, develop a website with a room reservation system, photos and price list.
• Promotions, discounts, bonuses.
  How to organize a hostel from scratch and immediately achieve fame? The task is difficult, but doable. At the start, special offers, discount programs, and seasonal promotions will come in handy. This will allow the number of visitors to grow more actively.
• Cooperation with travel agencies.
  Leave your contacts with several travel agencies. Most agents immediately accommodate clients in hotels; this increases the quality of services. If you agree on advance booking of rooms, some clients will be directed to your establishment. And this is an additional source of advertising.
• Services with hotel and hotel contacts.
  Since by opening a hostel from scratch, you plan to make a profit, do not expect that information about you will get online on your own. Register with several room booking services. The cost of registration on such resources (per month) is 200–300 rubles.
• Corporate clients.
  It is worth informing about yourself to the heads of companies and enterprises that often organize symposia and conferences in your city. Business cards, flyers and word of mouth are your main tools.