Your business: open a mini-hotel

Restaurant and hotel business Hotels and hostels

Having your own hotel business is the dream of many entrepreneurs. Moreover, this direction is considered promising and profitable. The gradual development of the tourism business in our country leads to the development of the hotel direction. Moreover, not only large world concerns open their own hotels in Russia, but also small companies and even individual private entrepreneurs.

Experts believe that the most popular these days are not large hotel complexes, but the so-called mini-hotels. The cost of accommodation there is much lower, and the level of service is often not inferior to the level of service in hotels that are part of a large network. Moreover, the most interesting are the economy class places, when it comes to large cities. Among the mini-hotels include facilities with up to fifty rooms. In addition to the actual rooms, guests can be offered a cafe-bar, a sauna or a bath, billiards and even a swimming pool.

Russian hotel business operators offer two main options for their clients: accommodation in a first-class hotel, where the cost of a room in large cities can be more than 10 thousand rubles per day, or two-, three-star hotels, the number of which can be rented for 1000 rubles per day. For this reason, it is this intermediate segment of economy-class hotels that attracts the greatest attention of entrepreneurs who own private houses or cottages.

If you still decide to try your hand at the hotel business, you should decide in advance on the format of your future hotel and its location. The most common option is a small hotel in a large city (first of all, its guests are visitors and business travelers).

Renting an apartment or house for a hotel from a third party is not the best option. You will spend a lot of money on repairing premises, which, in fact, will not belong to you.

Another problem is the high cost of rent, because of which you will have to increase prices for your guests. And finally, this option is fraught with many risks - from increasing rental rates to changing the owners of an apartment or house.

A little better option is the construction of their own building for a small hotel. Firstly, if you live in a large city, then it is highly likely that you will not be able to find a favorable place for development (ideally in the center of the city or at least near it and the traffic intersection).

For all these reasons, in most cases, a small part of an existing or former hostel, basements, several apartments located on one staircase or two floors at once are used for a small hotel, and less often for this purpose they acquire a part of a residential building or a separate building.

Communal apartments are very popular for organizing mini-hotels, which are resettled and then repaired. Thus, you can create from six to eight separate numbers. At the same time, ordinary apartments are less convenient for restructuring. Accordingly, the costs of redevelopment and additional engineering approvals from BTI will be much larger. On the other hand, having a separate entrance and a porch with 24-hour security or concierge will be your advantage.

Consider the total cost of such a hotel project. They add up to the market value of the real estate itself, the cost of repairs and redevelopment (if necessary). Add to this the cost of buying furniture, conducting electrical wiring, installing plumbing and other equipment. According to approximate estimates, they will amount to about 10-13 thousand rubles per square meter.

Note that this is the cheapest option for organizing a mini-hotel, which does not fully comply with the requirements of the law. After all, if you do everything as you need, your hotel should be located in a non-residential premises and meet a number of requirements of SES, fire supervision and safety standards. A license to open and run a hotel business is not required, but many owners of mini-hotels undergo voluntary certification at the Rospromtest certification center. Issuing voluntary certificates or not is a complex issue. On the one hand, certificates are necessary if you are aimed at developing your business, because they guarantee high quality of service and the safety of your guests, and on the other hand, obtaining them involves considerable costs, both financial and time.

If the design of your hotel and the plan for its development require catering facilities, then you will also have to obtain a license for the retail sale of alcoholic beverages.

It will also take a lot of time and effort to transfer the premises from the non-residential housing stock, to obtain all the necessary permits and approvals. It is not surprising that many owners of such hotel establishments do not register and do not issue any permits, acting illegally. This primarily concerns hotels, the number of rooms in which does not exceed four and which are located in small apartments. Thus, their owners reduce their expenses due to tax evasion and can set the cost of living in their "hotels" below the average market.

But such a scheme of work has its obvious drawbacks. To begin with, this activity is illegal and any complaint from a dissatisfied client to the relevant authorities will lead to its termination, and the owner of the gray business will have to pay considerable fines. Add to this the sharp limit on the number of your customers and partners. For example, you will not be able to accept corporate clients (business travelers), since your company will not be able to submit documents for financial reporting to them.

For the same reason, you will be extremely limited in promoting your hotel services through the media, you will not be able to add information about it in various directories. True, many entrepreneurs are not afraid of all this, and they quite successfully manage word of mouth. The capacity of such mini-hotels is extremely small, and the costs of organizing them are minimal, so the payback period for semi-legal institutions is much less than for those who conduct their business according to the law, and, according to various sources, are a little over two years.

The demand for mini-hotel services depends on the season. However, the season may vary, depending on their location. For example, when located in a recreation area, consider the flow of tourists and vacationers. If the hotel is located in a large city, the season falls on those months when applicants from the region and other cities come to enter the universities of your city. Partially among the competitors of mini-hotels can be called private apartments and apartments that are rented by their owners for rent. However, hotels are still intended for longer stays and in this case are more profitable than apartments rented for a day.

As the experience of other entrepreneurs shows, the main factor that people are guided by when choosing a mini-hotel is still the price, and not at all a beautiful repair or a very convenient location (although these two conditions have a certain significance, especially if you focus on more solvent audience). But if you are counting on a constant influx of customers and are counting on mass, it is worth minimizing costs and, consequently, the cost of services. Savings are achieved, as a rule, due to cost optimization.

In the hotel industry there are a huge number of different tricks. Even saving on trifles as a result allows you to save a lot of money. Unfortunately, all these things are not taught anywhere, they are comprehended only in practice. But it is important to remember that savings should not turn into greed and in no case should go to the detriment of the convenience of your guests. For example, you can buy liquid soap and shampoos and pour them into dispensers, which will significantly reduce their consumption. However, you should not completely remove the standard set of detergents from the room.

Experienced entrepreneurs who have been working in the hotel business for a long time know that their income directly depends on whether their guests like the living conditions or not. Therefore, they offer guests the opportunity to make free phone calls within the city (except for calls to mobile phones), Internet access, copying services (these services can be provided for a fee, at the request of customers).

The other two conditions for the success of your business are maximum cleanliness and a high level of service. This can be achieved without high costs. If you position your hotel as a budget institution with affordable prices, you should not invest in the development of design projects for each room, in expensive repairs, furniture and utensils. But it’s definitely not worth saving on cleaning services.

Another important issue is the careful selection of staff. Even if the entire staff of your hotel includes one administrator, two maids, a cook, a dishwasher and a cleaning lady, this does not mean that you can afford to serve your guests poorly. The usual signs of attention, courtesy and helpfulness will create the most favorable impression about your hotel. As professionals say, the success and popularity of a hotel establishment directly depends on the atmosphere that develops in it.

Also make sure that your guests do not worry about their safety. Many, even the smallest hotels, install alarm buttons, safes for storing valuables of guests, offer them life, health and property insurance services. In addition, if a client intends to settle in a hotel for a rather long period of time, its owners often offer to resolve issues with temporary registration.

Of particular note is the issue of nutrition. Some hotels offer only partial meals (for example, only breakfast and hot drinks), some do not have their own kitchen, ordering all dishes in a nearby cafe or restaurant or even purchasing ready-to-cook foods in grocery stores. According to experienced hotel owners, the cost of organizing a kitchen and preparing lunch and dinner rarely pays for itself.

Mini-hotels that exist in large cities can be divided into three main types - an ordinary apartment without much repair in a sleeping area, a large apartment (3-6 rooms) in good condition and apartments in a private house. Accordingly, the cost of staying in such hotels is also changing, which can range from 500 to 3, 000 rubles per day.

It is widely believed that the payback period of a small hotel is a long-term lease of 15 years. However, in practice, they turn out to be slightly less - from 5-6 to 9-12 years.

The costs of opening a short-term mini-hotel can be returned even faster - during the first three years of operation (provided that rooms are rented daily and when rented for at least six months a year). When making the calculations, lay the monthly expenses for ensuring the functioning of your hotel, which will make up about a third of its income. This amount includes payroll, utility bills, equipment repair and maintenance costs.

A separate item of expenses is attracting a constant flow of customers. In most cases, owners of mini-hotels publish information about their services on the Internet, free-of-charge advertising publications and in various information catalogs and reference books. Some also collaborate with various intermediaries: real estate agencies and travel companies.

Sysoeva Lilia

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