Largest Hostel of the Amazon For Sale
The largest and most successful Hostel of the Amazon is now for sale. (Manaus, Amazonas, Brazil)
After four years of continued growth, the current owner has decided to head in new directions (upriver) and has only just placed the hostel on the market.
The new owner of the hostel will inherit the benefits of
1) a dominating Internet presence on search engines and hostel/hotel booking sites,
2) Favourable reviews in approximately 15 national and international guide books, including Lonely Planet (Principle English speaking guide book), Footprints, Rough Guide, Routard (Principle French guide book), ´4 Rodas´, Brazil and ´Bem e Barrato´(Principle travel guide in Brasil),
3) Established local media presence (Approximately 10 articles and features in both local and national print and television media)
4) International media coverage, appearing on the Travel Channel´s reality program ´Take 5 South America´, and other international backpacker publications.
Beyond the already established media presence of the hostel, the new owner will enjoy the benefits that the world cup 2014 (Manaus has been selected as one of the host cities to this event) and the Rio Games 2016, will bring to the ever growing tourist flow through the Amazon and Brasil in general.
Manaus, a city of 2 million people, situated in the very heart of the Amazon, is without question the gateway city to the amazon jungle, with a huge international airport, and established manufacturing sector, giving its residents one of the highest income per capita of the country. The continued interest in this unique city is set to continue, along with the growing interest in ecological tourism. This is an opportunity to invest in the fastest growing sector of that industry; the independent traveller, or ´back packer´sector, at the center of the most important ecological regions of the planet.
The actual address of the hostel also makes it a sound realestate investment, with both state and federal government improvements to the local area set to accelerate the capital growth of the property. The hostel is located in the center of the city, just one block from the central ´Praca da Policia´, and three blocks from the famous Teatro Amazonas. The building has prestigious views of downtown manaus from the highest of its four roof top patios, with views of the Rio Negro Palace, another landmark of the downtown region, and newly built park that surrounds it. These improvements to the downtown region, which are occurring right on the hostels doorstep, will be a focal point for major cultural and tourist events of the future, and are just part of local governments efforts, including a metro system and rejuvenation of the port area, to modernise the city in preparation for the international events and growing international awareness the city is receiving.
The building itself is one of the towns original residences, built during the rubber boom that put manaus on the map. Since the purchasing the building in 2006, the owner has renovated and modernised the property for the needs of a bustling 70 bed hostel, while maintaining the original charm and character of the building. With both collective and private room accommodation, en suite bathrooms, separate guest and employee laundry facilities, kitchen area, breakfast area, beer garden and two extensive lounge areas, the hostel has been equipped for the changing needs of today´s independent traveller. With additional hammock space, the hostel has room for up to 80 guests during the very peak of the high seasons (occurring in the Jan/Feb and July/August periods).
Also very importantly, since early 2007, the hostel has been registered and affiliated (at a rating of ´very good´) with Hostelling International, the largest and best established hostelling network in the world. The local brasilian branch of this network offers a support network for making reservations, and maintaining the high level of quality that membership with this organisation requires.
Hostel Manaus retains the exclusive rights to the only Hostel International Hostel able to open in the downtown region of Manaus.
Price: $US 445 000 (Including building, furniture, fixtures and stock)
Profits (2009, before tax): $US 105 000
Location:
Quiet street, suitable for accommodation business, however just one block from the ´Placa da Policia´ a bustling, focal point of the downtown region, three blocks from the famous Teatro Amazonas, 15 meters from newly built park of Rio Negro Palace, with views of the same from the hostel´s roof top patio. 20 meters to bars and restaurants, one block to shopping center Esplanada and Lojas Americanas, twenty meters to river inlet that runs through park. Views of the Inlet, Igarape Manaus, and the river boats during the high water season from roof top patio. One block from Glacial Icecream restaurant. One block from main bus line that comes from the airport and bus station, meaning easy access and ´How to arrive´ description for guests. One block from The Avenue Getulio Vargas, a plesant avenue, the safest and busiest street in the town at night.
Property details:
Two trees provide shade at the front of the building with under street lighting for illumination and security at night, Lockable storage room for guest luggage while doing jungle tours, or using hammock space, including 16 lockable wooden lockers for backpacks, and 6 metal safes. Reception area with computer and drink fridge, kitchen with three fridges and cooking facilities, Internet area with computer, two
lounge areas, one with seating for 18 people, other seating for 4. Beer garden with large mango and star fruit trees providing shade and sometimes food, 4 roof top patio areas, one with panoramic views of the centro area of Manaus and unique wooden cover and ´skylight´style windows, open breakfast area, Second storage deposit area for drinks etc, Guest laundry, with drying area, hostel laundry with three washing machines and two dryers, separate, lockable sun drying area for hostel staff, 14 dorm and private rooms with 70 bed capacity, and separate split system airconditioners, hammock space for up to 10 people on roof top patio, 10 bathrooms, some with separate toilet and shower areas, pay phone area and linen storage space.
Expansion Potential:
Hostel Manaus turns away more and more guests each high season due to over demand. Expansion for the new owner is available by building more private rooms (which are presently receiving more demand than dorm rooms) on the roof top patio (which is already covered with a unique wooded shelter area), and in the area now being used as a beer garden. Because the hostel was designed with extensive lounge areas, more so than with many other hostels, this will not undermine the hostel´s livable space.
The owner also retains the rights to the name ´Pousada Manaus´ in Brasil, also including all relevant web domains, which would be passed on to the new owner of the hostel. This is another area of huge potential, since there are almost no pousadas in the downtown area of manaus, and there exists a huge demand online of Brasilians looking for this type of accommodation. Such advertising online could be blended with the hostel´s, to make use of the same premises for these two types of accommodation. The building has rights to a lane way at the back of the hostel, creating even the possibility for two separate entrances and receptions.
There is also the demand for a bar/cafe at the front of the hostel, which would cater for the guests as well as the growing student presence the street is receiving with the expansion of ´Uni Norte´, a large university which has opened various faculties in this area of centro. The bar/cafe could also cater for the general public circulating in the newly inaugurated park area of the Rio Negro Palace at the end of the street.
Before deciding to sell, the owner of the hostel was negotiating with the owner of a building across the street with the idea of renting to cope with the demand for beds during the high seasons.
Building restrictions:
The building is a class two heritage listed site, meaning that the front cannot be modified, and that the rear of the building can be built up to the heighest point of the building as it exists now (highest point is four stories high, with roof).
Competition:
Competition has been stifled due to Hostel Manaus´s dominating presence in the guide books, and internet. Hostel Manaus offers some of the cheapest rates of any hostel in Brasil for the basic dorm room (with breakfast), making it difficult for other hostels to commence with competitive prices. Also due to the fact that Hostel Manaus retains the exclusive rights to the Hostel International label, making it impossible for any other hostel to affiliate with the organization within the down town region (where the main tourist points of interest are located, also to where the guide book maps are limited). Since 2006, only one other non Hostelling International hostel has opened in the downtown region, and one other Hostelling International hostel has opened in an outer, distant suburb. Both these hostels have an approximate capacity of 40 beds, about half the maximum capacity of Hostel Manaus (70 + 10 with hammock space). Both these hostels have internet presence, with only one of them appearing in an international guide book (rough guide south america 2009).
Support and training:
The owner lives locally and can provide a designated amount of live-in support and training, for example one month.
Reason for selling:
Owner wants to move upstream!
Trading hours:
24/7
Furniture / Fixtures value:
$60,000 (value when new, included in the asking price)
Inventory / Stock value:
$2,000 (included in the asking price)