Not only serious and large investors think about how to organize a hotel business. Private entrepreneurs are also interested in this issue. It would seem that this niche has been occupied for a long time, and there is no place for newcomers in it.
However, this opinion is wrong. With the right approach and minimal risks, in a couple of years you can not only recoup the costs, but also start receiving income, and a stable one at that. We will tell you how to organize a hotel business.
Hotel or still a hotel?
Today these concepts are considered synonymous. Of course, there is a lot in common. But there are also differences. The word “hotel” itself comes from the Russian “guest”. Simple houses were built for travelers passing through, where they could spend the night. The amenities there were minimal (only everything you needed).
The word “hotel” is interpreted similarly, only the origin here is no longer Russian, but Latin. The original “hospes” (guest) changed, thanks to the French, into the more harmonious “hotel” (hotel).
Actually, there are no significant differences in the dictionaries. However, it is believed that a hotel, unlike a hotel, is more comfortable and has an expanded range of services. However, these differences do not affect Russia. In the classification of hotels in the Russian Federation, the concept “hotel” is not used at all. However, GOST requires the presence of at least ten rooms in premises for temporary residence. The characteristics and completeness of services are reflected by the number of “stars” (minimum one, maximum five).
Mini-hotels
The opportunity to buy an already promoted business is not available to everyone. And the purchase of land along with construction will cost millions. In search of a way out, many will inevitably ask the question: “Is it possible to equip your own apartment as a hotel?”
Here, as in every coin (or, if you prefer, medal), there are two sides. It turns out that approximately half of the hotel business is made up of unofficial (unregistered and not properly registered) private mini-hotels. People are forced to go into the shadows due to bureaucratic problems that arise during legal registration.
The root of the “gray” scheme lies in the official rental of the apartment. The owner of the premises saves a certain sum on legal registration and thereby reduces taxation costs. That's a plus. Now about the minus. Responsibility to the tax authorities has not been canceled. Therefore, if fact(s) of tax evasion are revealed, you will have to answer.
And these are penalties (at a minimum). In addition, if you own a gray hotel, you will not be able to advertise. We are not talking about assigning “class” (“stardom”) at all. The client base, as a rule, consists of regular visitors or guests recommended by them.
The reason for the popularity of small hotels
So why, being in the shadows, is a small hotel so popular? Why do some entrepreneurs, even before organizing a hotel business, try to look for roundabout ways?
It turns out that the whole point is the imperfection of the law, according to which it is not prohibited to equip an apartment as a hotel. That is why law enforcement agencies are quite loyal to such businesses.
And judicial practice confirms this. As an example, consider the claim of a citizen who demanded compensation for damage caused by severe flooding of her apartment.
The culprit was the owner of the “apartment-hotel”. At the same time, a complaint was filed with the prosecutor's office. It would seem that illegal activity has been proven. However, after the hotel owner compensated for the damage, the proceedings were immediately stopped. The complaint sent to the prosecutor’s office was not satisfied, since “a commercial rental agreement was concluded” and “there were no violations of the law.”
What kind of apartment can become a mini-hotel?
Here it is worth turning to the Housing Code of the Russian Federation. According to the letter of the Law, an apartment that is planned to be equipped as a hotel should be located only on the first floor (or on the second, if there are non-residential premises underneath). A separate entrance is required.
It is worth remembering the requirements established for mini-hotels, enshrined in the SNP and GOSTs, in particular GOST 51185-98. As you understand, there are many pitfalls. That is why there are so many mini-hotels that appear in advertisements as “apartments for daily rent”, nothing more. Some people will be quite happy with this option. But legalization will provide more advantages, including the opportunity to openly advertise services and attract the attention of a large number of potential clients.
Organization
Based on the above, we conclude: it is better to have a transparent business, the hotel must be officially registered! Where to begin? Let's say you have a room that meets all GOST requirements. Now you need to think about redevelopment, transfer to non-residential premises, and the need to register an individual entrepreneur. We provide an explanation of these concepts and a detailed description of further actions below.
Redevelopment
Among the first issues that will have to be faced will be redevelopment with official registration. The apartment will have to be transferred to non-residential use. They will require approval for changes to the façade, reconstruction of premises, and installation of separate entrances.
It will be possible to obtain permission to carry out work if you have a package of documents, including a copy of floor plans (issued by the BTI), property documents, permission to make changes (copies). Redevelopment can only be carried out by those companies that can guarantee the approval of absolutely all work. They will subsequently make changes to the plan and sign the act.
What will be required to convert residential premises into non-residential ones? Here you need to rely on the guidance of the Housing Code of the Russian Federation. The list of documents that will be needed in the local administration department is as follows: house plan (floor-by-floor), redevelopment project, title documents and the application itself. The procedure can be divided into stages:
- decision of the interdepartmental commission;
- determining the cost of transferring premises to non-residential stock;
- registration of property rights (issued by Companies House).
Sublease business
On the one hand, this option deserves attention. And at the same time, a sublease transaction is a risk of putting the property into the hands of a person who is not bound by any obligations with the lessor. How to organize a hotel business and not get into trouble? You can get around the pitfalls. First, you need to conclude the contract correctly. Here it is worth worrying about an additional agreement, the purpose of which is to mark (fix) the sublease agreement and stipulate additional important conditions. Of course, it is difficult to foresee all the nuances.
If they really want to, both the subtenant and the landlord can find a loophole that could harm the company. Therefore, indicate in the contract, in addition to the name of the subtenant, the specific terms of the relationship (the building is rented in full or only part of it; sublease or re-rent), the purpose (hotel, inn) and clear deadlines. The presence of the last item allows you to cancel, if necessary, all actions performed outside the allotted time.
Be sure to discuss the financial issue regarding improvements (for example, repairs, landscaping of surrounding areas, etc.) of the rented property. Decide who will pay for the work - the actual subtenant or the lessor.
Hotel taxation
According to Art. 381 of the Tax Code of the Russian Federation, tax rates in this case cannot exceed 2.3% (for the calendar year). The calculation procedure does not depend on the will of the payers. Delaying state registration of rights will be considered deliberate tax evasion. Accrual is made from the date of commencement of operation of the facility.
It must be admitted that the development of the tourism sector entails a number of positive consequences, one of which is the need for temporary housing. And in this trend lies hidden opportunities for active entrepreneurs. The question of how to open a hotel from scratch is distinguished by its apparent simplicity: we have all stayed in establishments of this kind at least once in our lives, and therefore we are sure that we understand the essence of the idea. But few people suspect that there are more pitfalls here than in any other line of business.
Legal aspect
Opening a hotel in our country does not involve obtaining a license, but you will still have to comply with some formalities. Licensing of activities will be required only if the hotel is planned to sell alcoholic beverages.
Business registration may have . If we have to talk about a large scale, then it is still better to immediately think about an LLC.
Coordination of activities in the presence of ready-made premises will have to be carried out with the following authorities:
- Fire Department;
- Rospotrebnadzor (if shops and catering outlets open in the hotel).
In this case, the size of the establishment does not matter. To expand the circle of clients, it is recommended to undergo certification of certain types of services that will additionally be provided at the hotel.
Choosing a format
At the planning stage, the main thing is to decide on the format of the establishment. A mini-hotel will be the most suitable option for beginners in business. These hotels include those whose number of beds does not exceed 50.
Among them:
- apartment-type hotels - no more than 10 rooms not removed from the housing stock;
- mini-hotels – 10-20 rooms;
- small hotels in separate buildings - 50 rooms.
- low-budget student hostel;
- economy class hotel;
- comfortable business hotel;
- apart-hotel.
More and more often lately you can find the so-called apartment type of hotel. However, it can easily be classified as a “gray” business, since this type of entrepreneurship does not receive proper registration.
The process goes like this:
- Several neighboring apartments are being purchased.
- Repairs are being made, furniture is being purchased.
- Visitors are moving in.
Such apartments are usually rented on a daily basis. But despite its apparent simplicity, this form of business organization has more disadvantages than advantages. The main one is the desire of city guests to behave differently than at home. That is, noisy, on a grand scale, without taking into account the interests of the neighbors. The latter, in turn, do not skimp on complaints to the relevant authorities, which threatens the businessman with nothing but problems.
In addition, you always have to search for clients on your own, since there is a chance to meet with tax representatives if you post. And such a segment as business travelers immediately disappears, since they need checks for reporting.
Selecting a room
So, the question of where to open a mini-hotel remains the most difficult for an entrepreneur. The best option would be premises in business districts of the city, in historical centers. If you have no plans to reach the luxury level, then the optimal choice would be buildings near train stations, metro stations, transport interchanges, and along highways.
An additional advantage will be the beautiful landscape outside the window and a separate entrance. The latter is especially important if your establishment is not located in a separate building.
There can be three options for owning the premises:
- to rent;
- build;
- redeem.
It is at this stage that many are scared off by this direction, since the question of serious capital investment arises. Renting rooms is not the best option, since the owner can always change and decide to use the building for other purposes. Then your business will simply end up on the street.
Construction may take more than one year, since you will have to deal with the registration of permits, project approvals, and land issues. From this we can conclude that it is most profitable to purchase the premises, or still rent them, but only for a long period and with the right of subsequent purchase.
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.
Opening a mini hotel is a good business idea for entrepreneurs who have good management skills, know how to properly organize work and reduce unnecessary expenses. The attractiveness of this idea lies in the fact that people constantly need hotel services, even during an economic crisis. Only the emphasis of demand is changing from luxury category to standard or economy. In this article, we present a detailed business plan for a mini hotel, which will help to properly organize work, calculate the profitability and payback of the business, conduct a SWOT analysis and build a competent marketing strategy.
In order to immediately determine the format of the business, it should be stipulated that the room capacity of a mini hotel, according to GOST, should be between 3-15 rooms. At the same time, a business can be implemented in several directions at once. This includes the creation of youth hostels and the opening of cozy family hotels. A 15-room hotel, which will attract the attention of business travelers and tourists, will be much more expensive for a novice businessman.
GOST also regulates the placement of a mini hotel only in a separate building with its own entrance. You may need an emergency exit - this will be determined by the Fire Inspectorate.
A mini hotel can only be located in a non-residential building.
Despite the economic instability in the country, the demand for hotel services has not fallen. Today, preference is given not to fashionable hotels, but to practical and inexpensive mini-hotels that can offer quality service at an affordable price.
Let's look at the main points that you should pay attention to in order to launch a successful project.
The implementation of any project is preceded by a stage of careful planning. No matter how original and relevant a business idea is, without strategic planning, analysis of the competitive environment, and market capacity, it is impossible to launch a project.
The hotel business involves large investments and, perhaps, it will not be possible to do without the assistance of investors. On the other hand, the profit from this business promises to be large.
A business plan will allow you to build a strategy of actions that are necessary for the successful implementation of an idea.
The document must:
- justify the relevance of the idea;
- perform an analysis of the environment in which the business will develop;
- calculate additional sources of financing;
- draw up a schedule for completing tasks.
Evaluating a business idea: pros and cons
Before we begin drawing up a business plan, let's analyze the advantages and disadvantages of this project, identifying its strengths and weaknesses.
Advantages:
- High demand. This aspect largely depends on the attractiveness of the region and the location of the hotel. Therefore, to choose a location, be guided by an analysis of the competitive environment, study transport accessibility, the location of the bus and railway station, and the presence of attractions near the site.
- Regular customers. With a properly developed marketing strategy and a high level of service, you will be able to occupy your niche in the market and work with regular customers who, through word of mouth, will promote your hotel for free.
- Opportunity to receive high income. A well-organized hotel business is profitable with 30-35% occupancy. And already at 50% occupancy it begins to generate income.
Flaws:
- High competition. Considering the stability of this business and the possibility of obtaining high income, many novice businessmen turn their attention towards opening inexpensive mini-hotels. With a properly structured strategy and high quality services, this drawback can be leveled out.
- Large starting capital. This business is associated with large financial investments, without which it will not be possible to organize a company. Renting premises or purchasing your own real estate, renovations, purchasing furniture and equipment - all this will require capital investment.
Where to start - determining the hotel format
Before drawing up a cost estimate, you need to determine what size and concept your mini-hotel will be.
Starting a business - where to start?
- A small mini hotel is designed for 10-12 people and allows you to create 3-4 separate rooms for overnight stay. This form is distinguished by a quiet, cozy environment and, in comparison with other options, does not require large investments. But you shouldn’t expect much income in this case either.
- The average size of a hotel is designed for 15-20 guests.
- If you decide to open a hotel with 15 rooms and the ability to accommodate up to 40 guests at a time, you will be faced with a large investment. To open such a business, entrepreneurs buy out part of apartment buildings or build separate mansions, initially designed for the hotel business. The disadvantage of this option is the serious investment, but the advantage is the possibility of large profits.
Before opening a mini hotel, it is important to make sure that it will be able to offer its clients all the necessary services.
The range of services largely depends on the chosen target audience, as well as the intensity of the competitive environment.
The standard service includes:
- daily room cleaning;
- wake-up call in the morning at the request of guests;
- provision of ironing equipment;
- delivery of correspondence;
- change of towels at least once every three days;
- calling an ambulance and providing a first aid kit;
- safe;
- change of bed linen at least once every five days;
- calling a taxi.
- breakfast in the room;
- sauna;
- billiard room;
- providing access to a computer with Internet access;
- pool.
Market analysis
Considering the high competition of this business, it is necessary to clearly define the target audience for which the hotel will be designed.
It can be:
- tourists;
- vacationers;
- people who came for treatment;
- business trips;
- romantic clientele.
Each group of people will have its own requirements, so you need to clearly understand what category of clients your business is designed for.
Analyze the market and identify the main players in your region. As a rule, a large number of hotels are concentrated in places where there are large concentrations of tourists. But quiet residential areas or the entrance to the city often go unnoticed by businessmen. Calculate the feasibility of placing a mini hotel, depending on the range of services and the selected target audience.
Please also pay attention to the fact that the location next to a landmark and a large crowd of tourists largely determines the seasonality of the business.
Pricing
This indicator is significantly influenced by factors such as:
- competitive environment;
- hotel location;
- range of services;
- room category;
- selected target audience.
The average price range of mini hotels ranges from 1400-1800 rubles per day, with breakfast included.
SWOT analysis
To determine the strengths and weaknesses of the business, we will perform a small SWOT analysis.
Strengths of a mini hotel:
- high quality of service;
- high demand;
- designer renovation;
- location in a park area;
- additional level of service (breakfast in the room, transfer, laundry).
Weak side:
- large capital investments;
- lack of parking;
- high competition.
- economic instability in the country;
- emergencies, accidents;
- seasonality of demand.
Project capabilities:
- increase in demand;
- powerful advertising;
- offering additional services.
Production plan
The main production costs include:
- purchase of real estate (or rental);
- purchase of furniture and equipment;
- renovation of the premises.
Organizational plan
The hotel business is in the sight of the state. To register it, you will need a certain package of documents. As a rule, mini hotels are registered as an LLC, which allows them to operate under a more favorable taxation scheme.
When contacting the tax office, prepare the following documents:
- passport of a citizen of the Russian Federation;
- receipt of payment of state duty (800 rubles).
- Application on form P21001.
To open a business, you must have the following documents on hand:
- charter, which will specify the type of activity of the enterprise;
- company current account;
- a receipt confirming payment of the state duty;
- authorized capital;
- minutes of the meeting of founders (if required).
To open a hotel, you must obtain a License, which gives the right to provide public services.
As for the form of taxation, this choice will depend on the scale of the hotel. For a medium-sized business, it is advisable to choose the Single Tax. In the future, as the project develops, you can always switch to another form of taxation.
After registering all primary documents, you need to obtain a conclusion from the fire inspectorate and sanitary and epidemiological station that the hotel complies with all legal standards.
In order to obtain such a Conclusion, it is necessary to provide the following documents to the appropriate authorities:
- certificate of registration of individual entrepreneur (or LLC);
- passport of a citizen of the Russian Federation;
- a certificate confirming tax registration and taxation form;
- premises rental agreement or document confirming ownership;
- medical records of employees.
Personnel search
An important stage in the work of opening a mini hotel will be the search and selection of personnel. The success of the enterprise largely depends on the level of qualifications, their communication skills and appearance.
Considering that the mini hotel will operate around the clock, the work of the staff will need to be organized in 2-3 shifts.
To operate a hotel with 10 rooms, you will need about 5-7 employees. The larger the hotel, the wider the staff will be. At the first stages, you can combine management functions, as well as the functions of a production manager. However, over time, you will face the need to separate them.
The main staffing units include:
- Administrator. Considering the hotel operates around the clock, you will need at least two people who will receive guests, keep order, and answer phone calls.
- A maid whose duties will include cleaning rooms, changing and washing linen, keeping the recreation area and kitchen in order.
- Accountant. For a small hotel, you can find a person who will combine the functions of accountant and administrator.
If the range of hotel services is not limited to standard room cleaning, but includes a sauna and serving breakfast, you will need to hire a cook. However, this type of service can be organized in another way.
It is enough to enter into a partnership agreement with a cafe or restaurant that is located in close proximity to the hotel. This will save money on paying for a chef and purchasing equipment for cooking.
Search for premises
The level of service and range of services that you can offer to clients largely depends on the correctly selected premises.
Pay special attention to the area where the mini hotel will be located. If there is an industrial zone, nightclubs, market, railway nearby - all this will significantly reduce the demand for the services of your business and affect pricing.
Regarding the issue of renting premises or purchasing real estate, you should carefully study the issue of investment and payback.
Location
The ideal location is the central part of the city, a quiet residential area, entering or exiting the city.
Please pay attention to the following criteria when selecting a building to buy or rent:
- good transport interchange;
- attractiveness from the point of view of the tourist route;
- parking space;
- quiet cozy area.
Many owners prefer to open mini-hotels in the city center, which ensures good traffic. The only downside to this is the high price of real estate, which will significantly reduce the payback period.
In addition, there are a number of standards that a mini hotel must comply with.
You will have to provide:
- constant cold and hot water supply;
- electricity supply;
- room temperature is at least 18.5 degrees;
- television broadcasting;
- ventilation;
- telephone connection.
And if household appliances help create an optimal hotel microclimate, you cannot influence the level of noise and odors in any way.
Experienced hotel owners advise to be very careful when choosing a hotel location and to visit the place more than once at different times of the day and year in order to correctly determine all the advantages and disadvantages.
Please also pay attention to the requirements for room size and availability.
The area of a single room should not be less than 9 square meters.
The area of a double room must not be less than 12 square meters.
For multi-bed rooms the following calculation applies: basic 9 square meters + 6 sq.m. for each guest. The only exceptions are seasonal mini-hotels - in this case, there can be 4.5 square meters per person.
The completeness of hotel rooms is regulated by GOST as follows:
- bed;
- table;
- chair;
- cabinet;
- storage space;
- mirror;
- one lamp (minimum);
- carpet or bedside rug;
- door lock;
- curtains.
Also, upon check-in, each room must have a set of bed linen and a set of towels.
Repair
The success of the hotel depends on high-quality and stylish renovations, because this will be the calling card of the mini-hotel. Therefore, you need to approach this issue responsibly and not save money on design.
After completing the repairs and arranging the furniture, you should take care of other important points in organizing the hotel business.
You should pay attention to the following criteria:
- provide customers with drinking water;
- install fire-fighting equipment and purchase fire-fighting equipment;
- ensure cleaning of hotel premises, treatment of towels and bed linen;
- ensure the maintenance of cleaning equipment and equipment;
- take care of maintaining the surrounding areas in proper condition;
- ensure waste disposal, as well as protection from various insects and rodents.
When the initial issues have been resolved and a suitable premises have been selected, it is time to start purchasing equipment for the work.
When selecting equipment and furniture for a mini hotel, follow the following rules:
- the equipment of the rooms should not be luxurious, but overly cheap furniture is also inappropriate;
- choose durable and comfortable furniture and textiles;
- The ideal option is to purchase special hotel equipment. Depending on the price level and target audience, choose a set from the economy class or luxury categories.
Even in a small hotel, everything should be thought out to the smallest detail. The beauty of the interior alone will not attract a client. In a hotel, he needs convenience first.
- rooms (beds, tables, chairs, TVs, split systems, wardrobes, mirrors);
- laundry (washing machine and dryer);
- reception (bar counter, armchair, coffee table, sofa, chairs for staff;
- means of communication;
- plumbing;
Marketing plan
You need to take care of how you will promote the service on the market long before the hotel opens. A plan must be drawn up that includes a detailed description of the proposed activities to popularize the service.
In this article we present classic marketing methods
In order for a mini hotel to become popular and recognizable, it is necessary to choose a sonorous and meaningful name for it, and also to create a unique logo. This data is placed on signs, business cards, leaflets and any promotional materials.
Important! Instagram, VK thematic group and YouTube channel are best suited for promotion.
Financial plan
Calculation of starting investments
- Regional peculiarity.
- Market saturation.
- Quality and level of hotel service.
We will present general items of expenses (indicating the average cost in Russia), which cannot be avoided when opening a hotel.
- Buying or renting premises. In the first case, you need to have at least 10-20 million rubles. The price will vary greatly depending on the region and the choice of hotel location. Renting a building for 15 rooms will cost 80-100 thousand rubles. Obviously, purchasing premises as a property is much more efficient and economical.
- Room renovation. This factor determines the status of the hotel, its “star” category and is a calling card. Therefore, you can’t do without a stylish design.
- Purchase of furniture, plumbing, household appliances - from 1 million rubles.
- Registration of documents will cost approximately 300 thousand.
- Expenses for a marketing company - from 100 thousand.
Monthly costs
For the normal functioning of the business, you will have to make certain cash injections every month. The costs can be represented as follows:
- salaries to employees. Depending on the format of the business and the number of staff, it can be 100 thousand rubles monthly.
- payment for utilities is a significant expense item and will amount to approximately 40 thousand rubles monthly;
- taxes from 20 thousand rubles;
- consumables – 10 thousand rubles.
Total: 170 thousand rubles.
When determining the pricing policy of your business, carefully analyze the market in your region and competitors’ offers. It is important to understand what exactly competitors include in their standard set of services.
In some mini-hotels, the price consists of only one bed with a standard set of services.
Other owners offer extended service, which affects the price. Of course, each of these categories will have its own target audience. In order to avoid mistakes and not to overestimate or, on the contrary, underestimate the price, you need to clearly calculate the profitability.
Accommodation cost 1 person/day 1000 rubles, occupancy 80%
20 people * 1500 * 30 days = 600,000 rubles
With a successfully built marketing strategy, good location and high quality of services provided, the profitability of the hotel business ranges from 15 to 75 percent.
The return on investment is 4-5 years.
Additionally, to increase profitability and increase profits, you can implement related services:
- laundry, ironing;
- snacks in vending machines;
- TV, game consoles;
- massage;
- billiards, board games;
- excursion services;
- nutrition;
- transfer, etc.
Important nuances for organizing a mini hotel
In addition to production costs, it is important to take care of the following nuances for opening a mini hotel:
- It is necessary to organize good security. Do not neglect hiring additional personnel (security guards) and installing an alarm system.
- the hotel must provide 24-hour check-in for guests;
- To organize catering in hotels, you will need additional permits and codes in registration documents.
Conclusion
The hotel business, despite high competition and large initial investments, can bring good profits. It is important to clearly define the target audience, choose the right location and correctly set the pricing.
The high professionalism of the staff and high-quality repairs will become the hotel’s calling cards and will serve as additional advertising, so the implementation of these points of the plan must be approached with full responsibility.
Video. Business plan for opening a mini hotel
– this is a profitable business, almost everyone knows. This type of business activity is especially popular in the resort area and in large historical centers.
Before drawing up a business plan, you need to decide on the basic concept. You can build either a large complex or organize a mini-hotel with 10-20 rooms. It all depends on the size of the budget, as well as the level of demand and competition inherent in a particular region.
Market and competitor analysis
Before you begin planning and calculations, you need to determine which main target group will visit the establishment. To do this, you need to divide all potential visitors into groups according to certain characteristics: type of activity, age, preferences, income level, etc. All this is necessary to draw up a portrait of the future consumer, develop a marketing strategy, and formulate a common corporate identity and name.
Any attractive and fast-growing market segment is not characterized by high profitability, because sooner or later direct competitors will become interested in it. To ensure that an increase in supply from a competitor or the entry of new participants into the market does not become a surprise for a novice businessman, it is necessary to identify rival companies and carefully understand their strengths and weaknesses.
When assessing competitors, you should pay attention to consumer perception, that is, which service is attractive to customers and which is not.
It all depends on the price, quality, level of service and social role of the hotel.
Factors of internal activity are invisible to consumers, but they also cannot be ignored. In this category you can find: labor costs, marketing costs, advantageous location, strategic partnerships.
- set service standards;
- have a significant influence on customers' perceptions of these services;
- allocate a decent amount to maintain their level in the market;
- can afford the luxury of price dumping - an effective means of maintaining market share.
You can learn useful tips on organizing such activities from the following video:
Format options
Europe and America have long practiced opening small hotels with 10-30 rooms. They are usually located near gas stations, roadside cafes and simply on the streets of large cities.
Russian business has just begun to develop this area, although experts unanimously consider a mini-hotel to be the most affordable type of activity that does not require large investments and quickly pays off.
You can open one of the following types:
- Hostel– an inexpensive option for people traveling around cities and countries. An ordinary apartment with bunk beds is suitable for arrangement.
- Family boarding— the most suitable mini-hotel for couples with children. Having your own shower, toilet and kitchen for cooking is mandatory.
- VIP hotel- the most expensive option. This could be a separate studio apartment, fully equipped with household appliances, or a small cottage with a picnic area.
- Hotel for pets. Many people who decide to travel abroad or simply see another city periodically face the question of who will look after their pet. If your family is far away, but you don’t want to leave your friends, because it is unknown how they will treat their beloved pet, then such an establishment is an ideal option.
Production plan
Approximate plan of an average hotel with 20 rooms:
- luxury room - 3 pcs.;
- double room – 14 pcs.;
- single room – 3 pcs.;
- small restaurant and bar;
- kitchen and several utility rooms;
- warehouse, boiler room and other technical premises;
- room for washing and ironing;
- billiard room;
- Gym.
The purchase of furniture and other interior items should be preceded by an assessment of operating conditions.
The establishment needs durable furniture, so using household furniture is not recommended. For example, the frame and legs of beds should be made of metal. Each room has a TV.
Financial plan
Construction takes approximately 2 years. The size of the investment is strongly influenced by the chosen region and the size of the establishment.
Fixed costs include the following items:
- implementation of design work - 0.7-1.2 million rubles;
- construction – 9-11 million rubles;
- organization of parking and landscaping - 1.1-1.4 million rubles;
- purchase of equipment, furniture and household equipment - 4.5-6 million rubles;
- a number of other (including unforeseen) expenses - 0.9-2 million rubles.
As a result, the amount of capital investment varies from 16.2 to 21.6 million rubles. You can save a decent amount if you can find a suitable building or premises for rent.
For the main cost items of an already operating hotel, approx. 6 million rub. for 1 year that will be spent:
- for wages and contributions to social funds - 2.5 million rubles;
- for operating expenses (payment of utilities, purchase of household equipment, various cleaning products, stationery and office supplies, telephone payments, etc.) - 3 million rubles;
- other expenses (including those that could not be foreseen at the time of drawing up the estimate) - 0.5 million rubles.
In this case, the planned income is 8-9.5 million rubles. annually and is formed due to:
- number of rooms – 6-7 million rubles;
- gym – 0.3-0.5 million rubles;
- billiard tables – 0.2-0.3 million rubles;
- restaurant and bar – 1.5-1.7 million rubles.
Hotel pays for itself in an average of 3 years, and the profitability level is 58%.
If you include in your business plan a calculation that is as close to reality as possible, taking into account inflation and the entire range of possible financial risks, then the payback period may increase slightly - up to 4-6 years.
Organizational plan
The start of renting out rooms must be preceded by official registration. For example, you can. The current legislation for this type of activity allows the use of.
It is necessary to register an LLC if you plan to open a full-fledged hotel, and if a person wants to turn his apartment into a mini-hotel (2-3 living rooms), then it will be quite enough.
The normal functioning of the establishment is impossible without the following employees:
| Job title | Number in accordance with the staffing table | Salary, rub. | Amount, rub. |
|---|---|---|---|
| Total: | 280 000 | ||
| Director | 1 | 40 000 | 40 000 |
| Administrator | 3 | 15 000 | 45 000 |
| Programmer | 1 | 20 000 | 20 000 |
| Accountant | 1 | 20 000 | 20 000 |
| Manager | 1 | 20 000 | 20 000 |
| Cleaning woman | 3 | 11 000 | 33 000 |
| Technician | 3 | 12 000 | 36 000 |
| Housemaid | 3 | 12 000 | 36 000 |
| Security guard | 3 | 10 000 | 30 000 |
Marketing plan
A constant flow of visitors can be ensured through the following marketing activities:
- placement and promotion of your own website on the Internet;
- advertising in travel and business magazines;
- outdoor advertising located near railway and bus stations, airports;
- development of a discount system for regular guests.
Opening schedule
The following table contains the steps that precede the opening in sequential order:
| No. | Stage name | Implementation period |
|---|---|---|
| 1 | Business plan development | July 2016 |
| 2 | LLC registration | August 2016 |
| 3 | Finding suitable premises | August 2016 |
| 4 | Current repairs and redevelopment | September 2016 |
| 5 | Replacement of windows and doors (if necessary) | October 2016 |
| 6 | Installation of ventilation system, fire alarm and air conditioning | October 2016 |
| 7 | Purchasing furniture and household appliances | November 2016 |
| 8 | Obtaining permits from Rospotrebnadzor, fire inspection, etc. | December 2016 – January 2017 |
| 9 | Selection and training of necessary employees | January 2017 |
| 10 | Organization of an advertising campaign | January 2017 |
| 11 | Start of activity | January 2017 |
You can carry out the above steps yourself or engage a third-party contractor who, for example, can carry out repair work, replace windows and doors, install a ventilation and air conditioning system, having previously agreed all this with the supervisory authority.
Risk analysis
Conducting any business activity involves certain risks. Even if the company is headed by highly qualified management, and the development strategy is thought out to the smallest detail, external influences can make their own unpleasant adjustments.
The most common and typical risks include the following:
- market- may arise when the economic situation changes, as well as the needs and demands of the target audience;
- financial– an increase in prices for necessary equipment, energy resources or an increase in wages;
- economic- hidden in changes in the economy as a whole or its individual financial aspects, for example, a change in the interest rate can have a negative impact on the financial condition of the institution;
- competition— it is enough for a competitor to reduce prices for services or expand the package of offers, and the hotel will suffer losses.
Many risks can be avoided through a carefully developed strategy. For example, the impact of unpleasant changes in market conditions can be reduced by systematically conducting in-depth marketing research. Unfair competition can be combated by going to court, monitoring market conditions and using marketing. The inflation process can be predicted and its negative impact can be significantly reduced if a reasonable pricing policy is implemented in a timely manner. And you can cope with force majeure circumstances with the help of property insurance.
Good afternoon. My name is Vladimir Vinogradov, I am from the Tver region. Five years ago I decided to open a hotel that is successfully operating to this day:
- initial investment – from 5 million rubles;
- 20 rooms: five of them are 3 rooms, six rooms are 2 rooms, nine rooms are one room. There are three study rooms, a chic hallway, a small cafe, a sauna and a swimming pool;
- each room has a TV, refrigerator, shower and toilet;
- number of staff – 10 people. Labor costs – from 200 thousand rubles;
- the average room rate is 1,500 rubles per day;
- monthly income – from 400 thousand rubles.
What is good about a hotel as a business?
Before starting such a business, you must understand its essence. A hotel is a place for accommodating people in rooms with the provision of additional services.
At the same time, you must immediately decide on the finances and scale of the business. You can open a small hostel or a luxury hotel. It all depends on the capital you have on hand.
It was not for nothing that I preferred this type of income - it is really promising. If you wisely draw up a hotel business plan and implement it step by step, you can actually recoup the costs within 1-2 years.
If your city is popular with tourists, is a business center, or has many educational institutions, then there will be no problems with customers.
The advantages of business include low competition in this area (unless, of course, the hotel is located on the seashore or near a popular tourist site) and one-time investments.
That is, you invest money once in equipping the building and start earning money. This is especially true for small establishments such as a hostel. All that is required is to maintain the given level, and, if possible, develop the business further.
Provide a short business plan for a hotel or inn.
To open your own business, follow a few simple steps:
1. First, decide on the building (this is very important). Try to find a place with beautiful scenery and open space.
A former hostel is perfect for setting up a hotel or hotel business. A good option is to use several floors of a residential building. Recently, it has become popular to buy communal apartments and turn them into small hotels.
But here problems with BTI may arise. If you don’t want problems, it’s better to choose regular housing.
Of the two options (purchase or lease), the best option is purchase; the budget option is rent. If you decide to rent, then immediately enter into an agreement with the condition of future redemption.
Please note that apartments are often transferred from hand to hand, so moving can be a major problem.
In such a situation, there is no need to talk about income and stability.
The optimal location of the hotel is in a non-residential building.
At the same time, it must comply with the requirements of the SES and fire inspection.
An important point is carrying out cosmetic work, restoring sewerage, electrical and water supply.
Costs for renting premises - from 100 thousand rubles per month, cosmetic repairs - from 600 thousand rubles.
If you decide to build a hotel, then the costs will be many times higher - from 5-7 million rubles and more.
2. The second stage is business registration. You can register as an LLC or individual entrepreneur. The first option is more preferable if you are going to develop in the future. Of course, you will have to tinker with collecting documents, but it’s worth it.
3. Be sure to complete the documents. Conclude an agreement with the sanitary and epidemiological inspection. To work in the service sector, there is no way to do without it.
But if there is a cafeteria or small bar on its territory that sells alcohol, then a license is required. When providing additional services, a certificate is required, as well as installation of a cash register.
If the business is located in a residential building, then it is important to comply with all repair, construction, sanitary and fire safety standards. Without this, you will not be able to obtain permission to start work.
How to open a mini-hotel?
A special issue is taxation. Here you can choose a simplified option. At the same time, it wouldn’t hurt to cheat and register the hotel in the documents as a minor emergency.
The total cost of registration, as a rule, is from 20 thousand rubles. Here, a lot depends on the quality of the repair and compliance with all standards.
4. Purchase equipment. This expense item depends on the number of rooms and the size of your business. Please note that each room must have a bed with a good mattress, a toilet, a shower, a table, two chairs, a chandelier, a mirror, a TV and a refrigerator.
It would not be superfluous to install the Internet, which will be distributed from several points.
For the kitchen it is worth buying a coffee maker, a refrigerator, a microwave oven, a washing machine, and a kitchen set. If you have a small cafe, you will need tables, chairs, an additional refrigerator for drinks, a device for dispensing beer, a bar counter and other equipment.
The total costs for furnishing 30-40 rooms can range from 6 million rubles and more.
5. Staff is the face of your business. It is advisable to hire people who are professionals and take a responsible approach to their work.
You will need one administrator who will receive guests and place them in rooms. In addition, his tasks will include receiving calls and monitoring the condition of all premises.
You will also need a maid to clean all rooms (two people), an accountant (1 person), a bartender and a cook (if there is a cafeteria), a manager, a technician and a security guard.
Employee salaries start from 200 thousand rubles monthly.
Russia and Ukraine is the first step to starting a successful business with an easy and simple start.
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6. An important point is business promotion. The first thing you need to do is create a high-quality website in several languages. Please note that today it is very fashionable to book rooms via the Internet, so contact numbers must be indicated to contact the administrator.
It’s a good idea to include a general photo of the hotel, as well as photos of each room. A person must receive all the information about the institution where he will live. At the same time, enter the cost of the room and meals (if any).
Promote your establishment using contextual advertising, specialized services for booking rooms, creating high-quality business cards and submitting advertisements to free newspapers.
If you take the issue of promotion seriously, get ready to shell out 30 thousand rubles at once, and then 20 thousand rubles monthly for maintaining and promoting the site, as well as for paying for contextual advertising.
How to open a mini-hotel?
Today, mini-hotels are becoming increasingly popular. Their difference from a regular hotel is the minimum number of rooms (up to 15). The advantage of such an establishment is the possibility of registering as an individual entrepreneur, choosing a small building for organizing a business and saving on personnel.
Naturally, other costs – equipment, repairs and advertising – are also reduced.
This is an excellent option for people who do not have a large amount of money behind them, but want to open something serious. If you don’t spend a lot, then when organizing a business you can invest in the amount of 3 million rubles.
As for organizational issues, the differences from the arrangement of a regular hotel are insignificant.
Table: Hotels and similar accommodation
How to open a hostel-type hotel?
If money is very tight, then you can open an even more “compact” business - a hostel. At its core, this is a superior dormitory with a shower room, a kitchen and a place to relax.
The advantage of such a “hotel” is a quick payback. As a rule, you can recoup costs 6-8 months after opening.
The documents will require a license, permission from the SES and the fire service. In addition, as in previous cases, you will have to register with the tax office.
You can choose any residential building with corridors and a foyer as a hostel premises. Often communal apartments are converted into hostels.
When choosing a room, it is important to take into account that there should be at least five square meters of space per person. The bed size should be standard - 190*80, and the distance between the beds should not be less than 70-75 cm.
Please note that one shower is per 15 people, and one toilet is per twelve (no more).
You don't need a lot of staff - two administrators (will work in shifts) and one cleaner are enough.
The total cost of starting a business is from 300 thousand rubles.
Table: Number of persons accommodated in hotels
How long will it take to open a mini-hotel from scratch?
Most of the time is spent on finding premises, arranging them and obtaining permits. This takes from 1-2 months to a year. If there is a lack of funds for equipment or problems with obtaining permits, the opening may even be delayed.
To avoid surprises in the future, be sure to draw up a business plan and take into account all expenses. This will avoid delays in opening due to lack of funds.
