Ladies and Gentlemen,
There is a building in Frankfurt am Main, where i managed to convince the owners that we can turn it into a hostel. In the city, the minimum price per night for a bed is 17 euro.
1. Details.
In the center of Frankfurt.
540 sq. meters., its possible to rent half of it if wanted
2. Price
13 500 euro per month, 6500 for half of the property.
3 times montly payment in advance as deposit for the owner
3 times montly payment in advance as a fee for the intermediary agency
3. Repairs.
There should be installed new walls and new toilets and bathrooms. I can bring the construction workers, organize and pay for that.
4. My money investment into it is 23 thousand euro.
5. Photos are attached.
6. Looking for people who want to join this joint venture. Pm if interested.
9 years
hello, seems like the rent and agency fees are very high, 162,000 annual rent plus crazy agency fees of 40,500 equals 202,500 EUR for the first year in direct expenses. This is not taking into account the business rate (Tax)and cost of running the place.
How many beds are you planning to have? what's the average going rate per bed?
9 years
Hi, this time i´m not planning anything. I give people the chance to realize their plan the way they want to. I can only help if needed. I give this opportunity to people who want to make something. The data: Frankfurt is a very expensive city in terms of properties, banking capital, the price per night in Frankfurt is at least 17 euro per bed. Competition is limited, prices are high and protected, because it´s very difficult to find a property for a hostel. If you put 100 beds inside you can calculate how much that makes per month. You dont have to pay 162 thousand annual rent up front, only 1 month.
9 years
Dear Hostelmaker,
so you wanna be just a financing shareholder and not get into operations?
Regarding the renting monthly cost, of course I would need more data (for instance, ABR and occupancy rate for Frankfurt hostel in similar position...) but I roughly agree with Alex: the renting cost seems unbearable.
Even if you manage to put 100 beds in the hostel and get a 100% occupancy rate, you can make 500.000 euros; my experience says that half of the revenues goes into costs, which means 250.000 left. Cutting off the renting cost, what is left is 88.000 euros. And that is the best-case scenario...
Good luck! :)
Related Pages
Log in to join discussion