How to open a franchise hostel - the best deals. How to open a hostel? Hostel Franchise Rus

Hostel as a business has become a popular format in Russia. It is not surprising, because it has many advantages: you can become a hosteler for relatively little money, while the demand for hostel services is constantly growing. What you need to know to open a hostel, and what to choose: an independent start, buying a franchise or a ready-made business?

Hostel as a business

Opening a hostel is the cheapest way to enter the hotel market. The minimum investment in opening a hostel is 350,000 rubles, but depending on the choice of development path and the situation with the premises, the amount may increase.

The average turnover of one hostel in Russia is 2.6 million rubles a year. At the same time, there is little competition in the market. According to the Interregional Association for the Development of the Hostel Industry (MORIH), there are now about 5,000 mini-hotels and hostels in Russia. Half of them are located in the most visited Russian cities - Moscow and St. Petersburg.

The cities of the Volga region and the Golden Ring have the greatest prospects for opening a hostel. In these regions, there is a high demand from tourists, and their flow has only increased since 2013. For example, 3,200,000 people visited the Yaroslavl region in 2014, and 2,500,000 tourists visited Tatarstan. At the same time, there are hardly enough places in hotels: during the New Year holidays of 2015, the occupancy rate of Kazan hotels was 90%.

In addition to a relatively low entry threshold and little competition, among the advantages of a hostel as a business are small costs for maintaining a business - salaries for staff, promotion, purchase of hygiene products, household chemicals - as well as constantly growing demand and a large consumer audience.

But, as in any other business, entrepreneurs face certain risks in the hostel segment. Network Head «» Daniil Mishin BIBOSS named such investment risks and difficulties as the right choice of location and the conclusion of a profitable lease agreement in rubles for a sufficiently long period. In addition, a suitable team of workers is important for a hostel.

The marketer pointed out the same points Ilya Ramone, answering the question of what should be considered first of all when opening a hostel:

« There are no things to consider first. Absolutely everything needs to be taken into account - location, name, website, employees and many other parameters»

Reach location

The main issue that needs to be resolved before opening a hostel is real estate. Hostel accommodation should be chosen wisely. Franchisors at BIBOSS put forward several requirements for hostel accommodation. First and foremost is the location. The hostel will be well filled and profitable if it is located close to the city center and major transport interchanges.

The second is the area. To host a hostel, you will need at least 44 sq.m. This is due to the requirement of GOST, according to which at least 4 sq. m. of space.

GOST standards are worth mentioning separately. Until 2015, there were no official regulations governing the operation of hostels. The hostel could be placed anywhere, furnished in any way, which in the end often undermined the authority of hostels in general. But in January, rules came into force designed to make the hostel market in Russia more civilized.

According to GOST, hostels can be located both in a separate building and occupy part of the house. At the same time, the hostel can be opened even in an apartment. It is not necessary to change the legal status of the premises, transferring it from residential to non-residential. But it is considered to be more convenient. You can make a separate entrance, and the price of real estate will increase.

You cannot open a hostel on the basement floor. But there you can place showers or laundries and establishments for the provision of various additional services, for example, a hairdresser, a room with slot machines, a buffet.

The important point is on which floor the hostel is located. By law, there are no restrictions here, but franchisors sometimes set their own requirements. For example, the Hostel Rus franchise requires a floor no higher than the fifth, because guests are unlikely to like climbing the stairs under the roof.

Another unspoken requirement is repair. It is desirable that the premises be renovated 3-5 years before the opening of the hostel in it. Even if you decide to open a hostel franchise, you will have to customize its appearance to the standards of the network.

How to open a hostel in an apartment?

The payback of a hostel largely depends on how much it costs you to rent a property. Ideal - if the premises are owned. Most often, novice hostellers own residential premises. Therefore, the placement of hostels in apartments is not uncommon, since GOST standards do not prohibit this. Network CEO « » Regina Davletova said:

“Opening hostels in the housing stock is much cheaper in terms of rent and primary equipment. Of the minuses - disagreements with neighbors, but in most cases we find a common language with them ».

You can negotiate with neighbors, but that's not all. Documents may become a new stumbling block. GOST requirements for hostels do not always coincide with the requirements of other organizations. To open a hostel, you need to prepare about 50 documents: a notice to Rospotrebnadzor about the start of activities, an agreement for the removal and disposal of solid waste, a disinfectant magazine, an agreement for medical care for employees, and others.

General Director of the Hostel Rus network Regina Davletova reported that there is a contradiction in the laws governing the hostel market. There is a GOST that allows the opening of a hostel in a housing stock without a separate entrance, but there is SanpiN, which prohibits placing public premises in a housing stock without a separate entrance.

Open a hostel from scratch or buy a ready-made business?

There are three ways to open a hostel: take on the business yourself, buy a franchise, or purchase a ready-made business. Each option has its own pitfalls.

Opening a hostel from scratch on their own is most often decided by those who want to save money or have complete freedom of action. The main disadvantage of this solution is the need to collect a large number of documents. Project Manager in Russia Valeria Lebedeva says:

« There are a lot of subtleties, but it’s quite possible to cope with them on your own. ”

The future hosteler, who decides to manage on his own, in addition to collecting supporting documentation, will have to fulfill a number of requirements for the adjacent territory, buildings, technical equipment and equipment of the premises. In the process, an inexperienced businessman can make many mistakes, which then only cost more. But working on a project from scratch on your own, you can set standards for yourself and make your hostel exactly the way you see it.

The least troublesome way is to buy a ready-made hostel business. In this case, you get an institution with a history, a certain name in the market, a client base, and fully formed business processes. The main disadvantage of this solution is the high price. Offers for the sale of ready-made hostels on BIBOSS start from 800,000 rubles per month and can reach prices of 6,000,000 rubles per .

Hostel franchise: the main thing is the brand

Buying a franchise often allows you to reduce the risks compared to opening a hostel on your own. One of the main roles in this is played by the well-known network name on the market. According to the marketer Ilya Ramone Don't underestimate the power of a brand:

« For a hostel, the brand is more important. According to our marketing research, a quarter of the guests come to our hostels because they had a positive experience in other hostels "Like ».

In terms of risks, buying a hostel franchise is a fairly safe option. But there are downsides as well. Network Head « » Daniel Mishin warns: "There are very few real franchises where the franchisee can get value for money invested." This confirms and franchisees of the network of hostels "Dostoevsky" in Togliatti Igor Zhukovsky. He confessed to BBOSS that he expected more from the franchise collaboration.

The eyes of many startups who choose a niche to open their business very often fall on a hostel or mini-hotel. It contributes to:

• development of domestic tourism in our country;
• relatively small investment;
• fast payback.

But this also leads to high competition among players in this segment. What pitfalls lie in this business, we will consider in our article.

Benefits of opening a hostel franchise

It is not worth talking much about the relevance of opening a hostel now. The upcoming FIFA World Cup, which will be held in Russia in 2018, promises hostellers multimillion-dollar profits in the shortest possible time.

And in order to get significant benefits from this event, the hostel must be “put on its feet” already now, because without certain aspects adjusted in the work, you can simply get lost among the competitors and burn out. These moments include:

1. The presence of an established booking system.
2. Proper marketing.
3. Social media presence, etc.

Therefore, you need to start building a business in this area right now. So how do you open a hostel from scratch and beat the competition? One of the best options is a franchise. To begin with, in simple words, we will state the very concept of this concept.

A franchise is a kind of contract under which one company grants the right to use its trademark to another company for some kind of remuneration.

In addition to its "name", the organization selling the franchise or franchisor may also provide the services of marketers, accountants, etc. The franchisee or the company that buys the franchise is required to pay:

• lump-sum (one-time) contribution;
• royalty (monthly fee), which is usually calculated as a percentage of the company's profit.

Various options are possible, which include both the payment of only a lump-sum contribution, and only royalties, or both. Everything will depend on the network providing the franchise.

The advantages of starting your own franchise business are obvious, among them:

1. The presence of clearly described and working in practice business processes. What is the key to the rapid withdrawal of the enterprise to profit.
2. Brand fame. Since this type of business is quite dependent on regular customers, and having a well-known name in the country or even the world is a big plus.
3. Availability of ready-made solutions in the field of marketing, interaction with suppliers and much more. There will be no need to "fill your bumps" at every step.
4. Support from the franchisor. It can be expressed in different ways: from advertising at the federal level to simple answers to questions in personal messages. In any case, an adequate franchisor will support your business with all their might, as this, in turn, will increase its profits.

No matter how good this system is, there will still be disadvantages. First of all it is:

• need to pay the franchisor. The entrepreneur will be obliged to regularly give away part of the profits from his activities;
• strict rules in the work of the hostel. There will be no opportunity to experiment and introduce something new.

Which franchise is the best?

When choosing a franchise, you must be guided by both your own resources and capabilities, and the reputation of the franchisor. In our country, recently there has been just a boom in the development of this direction, so there will definitely not be problems with the number of options to choose from.

You can carefully study every offer on the market. When choosing, you need to be guided by the following factors:

Overview of popular franchises

There are a lot of different hostel franchises in our market. But not all of them are worthy of attention. The most popular in Russia today are the options discussed below.

Rus

The growth rate of this network suggests that this player will be the largest in the Russian market. Rus has opened more than 20 new hostels in the last year alone, and this is only in the Moscow region.

The owner of the hostel must provide a room of at least 70 sq. m, pay a lump-sum fee of 600,000 rubles, and in return he will receive a ready-made European-level hostel almost on a turnkey basis in a month, since the franchisor himself helps to launch an advertising company, recruit staff, etc.

Nice

Nice is an international company, one of the best for those who plan to focus on serving guests from other countries. A well-established brand around the world will take a one-time fee of 400,000 rubles for using its name.

Franchisees, in addition to assistance in paperwork and the hostel itself, are guaranteed to attract European tourists.

Like

Like is one of the most popular hostel chains in the entire CIS, it started its journey relatively recently, in 2013. Nevertheless, already now there are nearly a hundred of its partners.

The franchisee will need a space of at least 100 sq. m in the city center. The payment for using the franchise is a one-time payment of 200,000 rubles and regularly 150 rubles per bed.

Dostoevsky

This network bears with dignity the name of the great Russian writer. A distinctive feature here is the presence of an atmosphere of home comfort.

Usually the number of residents of the hostel Dostoevsky is about 20 people. The lump-sum fee for the franchisee will be equal to 500,000 rubles, and royalties - 1.5% of the profit.

Voyage

You can open a Voyage hostel in just four weeks and earn 100-150 thousand rubles. from every 100 sq. m. This is exactly what the USP of the franchise of this hostel chain sounds like. In order to take advantage of this offer, the entrepreneur will need a room with an area of ​​​​150-1500 square meters. m. As well as a lump-sum contribution of 100,000 rubles. The royalty is 5% per month.

Summing up all of the above, you can see that starting a business as a franchise hostel is quite a promising opportunity to start your own business.

Of course, as in any business, there are risks, so even the presence of such support as a good franchise is not a guarantee of success, but the trends of the modern Russian market promise significant growth for this business.

I have been thinking for a long time how to open my own business with minimal investment, and then I came across the idea of ​​acquiring a franchise of a hostel located in my city for reasonable money.

As it turned out, this is the easiest way to enter the hotel market, and customer demand is constantly observed. Gradually, the Like hostel franchise began to bring in excellent income, but for this I had to invest in advertising.

Investments amounted to about 350,000 rubles, but much depends on the chosen premises and the need for repairs. I chose the Like hostel for the reason that the most favorable terms of cooperation were offered.

They explained to me how best to run a business, and using the recommendations provided, I was able to reach a good income, and the investment paid off very quickly.

When buying a franchise, I received the following:

• Effective recommendations for cost reduction;
• Detailed instructions for opening and further developing a business;
• A high-quality site, with the help of which it was possible to attract many customers. A rather expensive ERP system was also provided;
• Tested and constantly improving marketing steps;
• Possibility at any time to have a free online consultation on any issues;
• Exchange of experience with franchisees from other cities who at that time had been working in this area for a long time;
• A set of design layouts;
• Opportunity to work under a world famous brand.

I also found many other hostel franchises on the Internet, but this one seemed to me the most interesting and I did not regret my choice.

Franchise Hostel Like

Only fifteen days passed from the moment of application to the opening of the hostel. The first few days were spent on consideration of the application, after which I signed the contract.

After that, a small repair was carried out and all the necessary furniture was purchased. On the 15th day, the first customers appeared. They were satisfied with the rest, so they recommended the hostel to their relatives and gradually the number of tourists began to grow.

Branded furniture is installed in all hostels, because the company maintains a reputation at the highest level. I am very pleased with the cooperation, because a year has passed, and the business has fully paid off, after which I began to receive a net income.

Most of the expenses were directed to the advertising company, because at first many did not know about the existence of my hostel. The size of the average check is about 2800 rubles, which is very good. Almost always the hostel is filled by more than 60%, the rooms are empty very rarely.

Reviews for Like Hostel

After reading the reviews on the Internet, you can be sure that the Like hostel franchise can generate a lot of income. The highest earnings are observed in the summer or during some holidays, when people go on vacation.

In winter, the demand is much less, but, nevertheless, the income is very good and pays for all investments. The reviews are extremely positive, because the Like company helps in every possible way in organizing a business.

First of all, these are high-quality consultations on all emerging issues, but such a need rarely arises, because the instructions provided at the time of purchase contain almost everything you need.

After reviewing the hostel franchise comparison, you will understand that this company has no equal. It works all over the world, so I decided to open a hostel in my city.

At first it was difficult, because I had to spend a lot of time preparing the business, as well as its further promotion. For the first month of operation, more than 100 people used the services of the hostel, the earnings from which amounted to 90,100 rubles.

I am very glad that I had the opportunity to work in the Like team, and soon I decided to save up some money and acquire another franchise.

You can read about the latest news and trends in the franchise business

Dostoevsky Hostel Franchise

After reading the hostel franchise reviews, I decided to try cooperation with the Dostoevsky company, which is successfully operating in Russia. The initial level of investment is only 100,000 rubles, which I have accumulated in just a couple of months.

In the future, I invested another 500,000, but this was much easier to do, because then I already began to receive income from the hostel, which also gradually increased.

Every month it is necessary to pay 5% of royalties, but this is not much if you look at the offers of other companies that operate in our country.

Hostel Franchise Rus

Now I know from my own experience that a hostel franchise can bring excellent earnings if you approach the business organization correctly. The most important thing is the quality of repairs in the premises that are planned to be handed over.

They should be as comfortable as possible so that the client is satisfied with the rest, wants to return again and recommends the hostel to all his friends.

For this reason, it took me a long time to find good premises, and after that I also had to do repairs, but fortunately, the investment quickly paid off.

The promotion of the hostel was greatly simplified thanks to the site where I posted photos of the rooms, painted all the advantages of the hostel and prices.

I was contacted by people from different regions of our country who found my site in the search results. Advertising costs are needed only for the first time, in the future, many regular customers used the services of the hostel.

Now I'm planning to buy a franchise network hostel, I'm counting on this to greatly increase my earnings. If from one hostel it turns out to earn 200,000 - 300,000 rubles a month, then imagine how much you can get from a whole network of hostels.

Video tour Hostel Like-Tyubeteika Like Kazan

At the same time, the costs are acceptable and pay off after about a year of work. Especially large income is obtained during the holidays, when people come to their relatives from all regions of the country.

From English, the word "hostel" is translated as "hostel". Indeed, such a mini-hotel is in many ways similar to an ordinary hostel.

If you decide to open your own hostel, then you have probably heard that it is better to start working on a franchise. But what is it, and what is the benefit of working on it?

The average Russian hostel has only only two rooms - reception and rooms where the guests live. Often up to 10 people can live in one bedroom at the same time. Shower, toilet and kitchen in such mini-hotels are in common use by all guests. In more comfortable options, there is also a room with a TV and the Internet, where residents can spend their leisure time. But there are only a few such mini-hotels in our country.

As a rule, students who want to save money on travel prefer to stay in hostels. Sometimes people who just need somewhere to spend the night sleep in them.

Why is it more profitable to work on a franchise?

If you do not delve into the terminology, then a franchise is an agreement according to which one party, represented by a successful entrepreneur (the franchisor), grants the other party (the franchisee) who wants to start his own business, the rights to use the trademark to sell services to a novice businessman.

According to statistics, entrepreneurs who decide to start their own business in this way are more likely to survive in a competitive environment. After acquiring a franchise, a novice businessman no longer needs to spend time and money on organizing a business and establishing it. He can immediately move on to the main task - the development of activities, expanding the client base and, of course, increasing profits.

What do you get from cooperation?

After the conclusion of the contract, the company granting you the right to use its trademark will offer you special brochures, invitations to courses, with the help of which you will be able to gain skills for successful business. It is worth noting that the general rules for doing business still need to be known even before concluding such an agreement. Otherwise, even the franchisor will not save you from ruin.

The owner of the company who has signed a franchise with you is always ready to provide the necessary advice, which will also allow you to “roll out” your business faster, avoiding mistakes that are difficult to avoid working alone.

The franchisor will help to carry out the current advertising campaign. You can always count on help in creating an advertising slogan, placing banners. It is not uncommon for a company owner to advertise his franchisee on federal channels.

By franchising, you will be able to avoid stiff competition. The contract will immediately indicate in which territory you can develop business activities. After signing the agreement, a novice businessman can easily acquire a license to operate without fear of competition.

How to choose a franchisor?

In order for a franchise agreement to really bring you success, it is very important to choose a good and experienced company. In our country, there are many options that offer such services, but they themselves are not able to provide the necessary support to new entrepreneurs. Such companies do not have much influence in the market.

If you want to choose a good franchisor:

• carefully study all the information about the company - find out the history of creation and formation. This will help to ensure her competence;
• study the scope and influence of the franchisor. This needs to be done, as many sellers offer franchise services simply to draw inexperienced entrepreneurs into a showdown between competitors. In this way they want to strengthen their own monopoly and reduce the demand for other businessmen's products;
• carefully study the conditions for acquiring a franchise. The contract must clearly indicate the territory in which you intend to conduct business. The agreement must also specify the purchase price. The cost should be comparable to the results that you expect to receive from signing the contract;
• the acquisition benefit largely depends on the amount of payments to the franchisor. When buying, you should pay special attention to the size of the lump-sum (one-time) payment for permission to operate under a foreign trademark and the amount, that is, the regular fee. It is these two quantities that determine how successful cooperation will be;
• When buying a franchise, it is important to stipulate the terms of its termination, because if you want to terminate the agreement, it may turn out that you will have to answer with all your business assets.

Proven Franchise Options in the Area

Like

This is a network of developing mini-hotels throughout Russia and the CIS countries. It was founded relatively recently - in 2013. Despite this, the owners already have about 88 partners.

• The company is ready to share its experience of quickly opening and developing a hostel with other entrepreneurs. Upon signing the agreement, the franchisee must pay one-time contribution of 200,000 rubles, and then monthly pay only 150 rubles per bed.
• Like, in turn, offers operating models for opening a hostel in a city with a population of about 10,000 people and large cities with more than 10 million inhabitants (St. Petersburg, Moscow).
• Each new entrepreneur is provided with a marketer, lawyer and account manager. A lawyer will help prepare all the necessary documents for opening and choose the appropriate taxation system.
• The franchisor will provide regular advice on filling out tax returns, expanding the client base and conducting an advertising campaign.
• The franchisee, before signing the contract, must provide an apartment (about 100 m 2), located in the city center.

An overview of one of the mini-hotels of this chain is on the following video:

Dostoevsky

The network of hostels Dostoevsky is known to guests for its homely atmosphere of comfort and excellent living conditions. In one room of this type of hotel, an average of up to 20 people live.

The company is ready to provide services for a one-time fee of half a million rubles. The franchisee must also pay monthly payments in the amount of half a percent of profits.

After the signing of the agreement, the network promises support in starting a business. The franchisor helps to conduct an advertising campaign in Yandex.Direct, create your own website and build a marketing policy correctly.

On the following video you can watch a story about one of the points of this franchise:

Nice

This is an international network of hostels that successfully operates in the vastness of our country. Buying a franchise in this company means opening a mini-hotel according to European standards of comfort.

A one-time purchase fee will cost a potential entrepreneur in the amount no more than 400,000 rubles.

After signing the contract, the franchisor promises not only to help with paperwork and conduct a powerful advertising campaign, but will also send European tourists to stay with you. This network uses its own verified channels to advertise newly opened outlets.

Rus

This network surprises many successful businessmen with the dynamism of its development. Last year alone, the company opened more than 20 new hostels in Moscow. The network management is ready to share its invaluable experience with new entrepreneurs:

• After signing the agreement, the potential owner of the hostel must pay one-time contribution in the amount of 600,000 rubles. The franchisor, in turn, promises to open a new hotel with European living conditions in any city of our country in just 30 days.
• The company will help you obtain a certificate for doing business, arrange the design of the premises, select staff and train them in the rules of work. It will also help you attract customers with a powerful advertising campaign.
• The franchisee, in turn, must provide premises (more than 70 m 2) in a quiet and clean area of ​​the city with good transport interchange.

Stages of business organization

1. Before looking for a franchisor, you should consider what building the future hostel will be located in. This could be a rented space or even a purpose-built building. If you decide to build, then lay in the construction plan the possibility of completion in the future. It is also possible to purchase one or two apartments on the ground floor.
2. When the premises are already there, you can start looking for a company.
3. After signing the contract, you must register as an entrepreneur.
4. Next, you need to set the rules for the stay of guests. So, 2 m 2 of a room should be allocated for one person. The shower cabin should be designed for no more than 15 people, the toilet - for 12, and the washbasin - for 6 people. The building must be well soundproofed. Guests need to provide access to the Internet so that they can communicate with relatives and friends.
5. Then you need to think about advertising to ensure a constant flow of tenants. Advertising can be placed on websites, use print media, use the help of the franchisor in promoting services.

Hostels are an intensively developing area. This is budget temporary housing, which today is increasingly chosen by the following categories of customers:

• tourists;
• business trips,
• students.

Due to the affordable cost of accommodation, hostels successfully compete with hotels. At the same time, they offer quality service, which is an important advantage compared to rented apartments.

For its owners, the hostel provides an opportunity to make big profits and a quick return on investment, which makes this area highly popular among small and medium-sized businesses. At the same time, franchising is the best option for starting a new business for many.

Why choose a franchise

When opening a hostel, an entrepreneur may face a number of difficulties. It is necessary to choose the right premises, create an appropriate interior and conditions for guests, go through many formal procedures, and ensure an effective advertising campaign. All this requires relevant knowledge and experience.

If you're looking to open a hostel, franchising is an easier and more efficient option than starting one from scratch. Franchisees are only required to pay a lump-sum fee and royalties. At the same time, he receives a ready-made business model, a promoted brand of a hostel chain, consulting and other support from a franchisor who is interested in his success.

If you are interested in franchising a hostel, then our catalog will be able to offer you a large selection of successful options, which will allow you to quickly open a franchise and launch a profitable business in a short time.