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My project : Hostel in France

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fabio31 started this discussion 15 years 2 weeks ago

hello,

It's been 1 year Im thinking about opening a hostel in my hometown ! There is no place for Backpackers in Toulouse. Only 1 "hostel" but it's also a reception center / reception arrangements so it s not friendly.

If my project comes true, it s going to be the first real hostel in my hometown

I never worked in a hostel so before starting it i will work for free in well rated hostels during few month.

Im working on a 50 beds hostel at 20€/bed/night breakfast included

INCOMES (50% occupancy rate)
- Net Room Revenues : 50 * 0.5 * 20€ * 365 - VAT =172K€
- other revenues : 10K€
====> INCOMES = 182K€

EXPENSES
- Wages : 55K€
[INDENT]-1000€net/month for me and my partner = 1000 x 12 x 1.8(taxe rate) x 2 pers = 43K€ [/INDENT]
[INDENT]-part time work for cleanning = 12K€ [/INDENT]
- F&B purchase : 20K€
- Energy, water, garbage disposal : 15K€
- Laundry : 5K€
- Cleaning Materials : 1,5K€
- Maintenance : 5K€
- Taxes (not VAT) : no idea
- Marketing : 3K€
- Insurance : 2K€
- Telecommunication : 0,5K€
- Administration, EDP : 3K€
- Capex : 10K€
- Lease : 40K€
====> EXPENSES = 160K€

INCOMES => 182K€
EXPENSES => 160K€
profit=> 22K€

- I guess that i forgot some things ... or may be my forecast is not good... What do you think ?

- Do you think a 50 beds hostel is viable ? a 30 beds hostels ?

- Can we run a 50 beds hostel with 3 persons ? and a 30 beds one ?

- Do you think 50% of rate occupancy is high for a start ?

- How long does it usualy take for having reservations from booking hostel engines ? there is nos hsotel in Toulouse so I guess it s going to take a while for having reservation isnt it ? what do you think ?

- Do you have an idea about how much money/funds do I approximately need for starting ? (beds, security, front desk, computing, linen, storage space, fiting-out, etc ...)

- 50 beds means i need a 500sqm place ?

- I found a building wich is 300sqm with 2 floors (3 * 85sqm + 85sqm attic /\ ) do you think its ok for 30 beds ?

- in your opinion, how much money should I/we invest ? I can have 20K€ may be more ... do you think it's enough for guarantee of serious as regards of bank/investissors ?

OK i will post more questions later ...

Thank you in advance !

Fabio

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HostelBelgium

15 years

Hi Fabio,
shortly some of my remarks:

hello,

Im working on a 50 beds hostel at 20€/bed/night breakfast included

INCOMES (50% occupancy rate)
- Net Room Revenues : 50 * 0.5 * 20€ * 365 - VAT =152K€
- other revenues : 10K€
====> INCOMES = 162K€

EXPENSES
- Wages : 55K€
[INDENT]-1000€net/month for me and my partner = 1000 x 12 x 1.8(taxe rate) x 2 pers = 43K€ [/INDENT]
[INDENT]-part time work for cleanning = 12K€ [/INDENT]
- F&B purchase : 20K€
- Energy, water, garbage disposal : 15K€
- Laundry : 5K€
- Cleaning Materials : 1,5K€
- Maintenance : 5K€
- Taxes (not VAT) : no idea
- Marketing : 3K€
- Insurance : 2K€ I think you have to double this cost
- Telecommunication : 0,5K€
- Administration, EDP : 3K€
- Capex : 10K€
- Lease : 40K€
====> EXPENSES = 160K€

INCOMES => 162K€
EXPENSES => 160K€
profit=> 2K€
Giving yourselves both 1000€ net, making no other profit, is not realistic, or is it?

- I guess that i forgot some things ... or may be my forecast is not good... What do you think ?

- Do you think a 50 beds hostel is viable ? a 30 beds hostels ?
Depends on Toulouse as a touristic city.. You know your own city best.. And depends on what you want to create.. THe smaller, the cosier and more personal. The bigger, ... I think 50 is already pretty big to start up, maybe you can start with 30 beds and rent the first year for example 2 rooms to students (guaranteed income). If more beds are needed, you can use those 2 rooms the second year for your hostel

- Can we run a 50 beds hostel with 3 persons ? and a 30 beds one ?

- Do you think 50% of rate occupancy is high for a start ?
When composing your financial calculation, i would count it a bit more detailed.
For example:
* 2 months (60 days) 100% occupancy. 50beds x 20euro x 62=
* 2 months 60% occupancy. 50beds x 20euro x 62 x 0,60 =
* 8 months 30/40% occupancy. 50beds x 20euro x 240 x 0,3/0,4 = .

- How long does it usualy take for having reservations from booking hostel engines ? there is nos hsotel in Toulouse so I guess it s going to take a while for having reservation isnt it ? what do you think ?
Hmmm, it depends. Such things can go fast.. The days your hostel will be on f.ex. Hostelworld.com, bookings can be made. But everything needs time, so don't hope for too much. It's better to listen to some experienced guys/hostel owner, they know more about it than me.

- Do you have an idea about how much money/funds do I approximately need for starting ? (beds, security, front desk, computing, linen, storage space, fiting-out, etc ...)

- 50 beds means i need a 500sqm place ?

- I found a building wich is 300sqm with 2 floors (3 * 85sqm + 85sqm attic /\ ) do you think its ok for 30 beds ?

- in your opinion, how much money should I/we invest ? I can have 20K€ may be more ... do you think it's enough for guarantee of serious as regards of bank/investissors ?

OK i will post more questions later ...

Thank you in advance !

Fabio

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HostelBelgium

15 years

By the way, regarding to: "- Do you have an idea about how much money/funds do I approximately need for starting ? (beds, security, front desk, computing, linen, storage space, fiting-out, etc ...)"

Don't forget as a starting cost to make your building ready and according to all french regulations. Security exits, fire regulations, ... this is also a big cost

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collegeofparty

15 years

- Do you have an idea about how much money/funds do I approximately need for starting ? (beds, security, front desk, computing, linen, storage space, fiting-out, etc ...)

Hi Fabio, Finding out how much this will cost is really up to you as there are higher priced items and there are cheaper - Just go out and start shopping around looking for the prices of the things you are going to need to buy. What I did was start a spreadsheet and list every single item i would need along with quantities first I estimated what I thought it would cost then everytime I found a price for an item i needed I would add the actual price to the list. Also don't be shy about going directly to manufacturers and asking for a quote. I also head to auctions whenever I can, picked up 4 brand new black leather couches just the other day for under $1000 CDN

Anyways, hope that helps - good luck with the hostel!!

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fabio31

15 years

I made a mistake on VAT : in france it s 5.5% and i did my forecast with 19.6% ! check the Incomes

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fabio31

15 years

50 beds hostel at 20€/bed/night breakfast included

INCOMES
- Net Room Revenues :
[INDENT]2 months (60 days) 100% occupancy. 50beds x 20euro x 62=62K€[/INDENT]
[INDENT]2 months 60% occupancy. 50beds x 20euro x 62 x 0,60 =37,2K€[/INDENT]
[INDENT]8 months 30/40% occupancy. 50beds x 20euro x 240 x 0,3 =72K€ [/INDENT]
- other revenues : 10K€
====> INCOMES = 171K€

EXPENSES
- Wages : 55K€

-1000€net/month for me and my partner = 1000 x 12 x 1.8(taxe rate) x 2 pers = 43K€

-part time work for cleanning = 12K€

- F&B purchase : 20K€
- Energy, water, garbage disposal : 10K€
- Laundry : 5K€
- Cleaning Materials : 1,5K€
- Maintenance : 5K€
- Taxes (not VAT) : no idea
- Marketing : 3K€
- Insurance : 4K€
- Telecommunication : 0,5K€
- Administration, EDP : 3K€
- Capex : 10K€
- Lease : 50K€
====> EXPENSES = 172K€

INCOMES => 171K€
EXPENSES => 167K€
profit=> 4K€

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fabio31

15 years

"Giving yourselves both 1000€ net, making no other profit, is not realistic, or is it? "
For a start, it is ! of course I d like to earn more after ...

" I think you have to double this cost "
Done !

"Depends on Toulouse as a touristic city.. You know your own city best.. And depends on what you want to create.. THe smaller, the cosier and more personal. The bigger, ... I think 50 is already pretty big to start up, maybe you can start with 30 beds and rent the first year for example 2 rooms to students (guaranteed income). If more beds are needed, you can use those 2 rooms the second year for your hostel"
I like your idea ! start with 30 beds and 2 student rooms !

When composing your financial calculation, i would count it a bit more detailed.
For example:
* 2 months (60 days) 100% occupancy. 50beds x 20euro x 62=
* 2 months 60% occupancy. 50beds x 20euro x 62 x 0,60 =
* 8 months 30/40% occupancy. 50beds x 20euro x 240 x 0,3/0,4 = .
Done !

Hmmm, it depends. Such things can go fast.. The days your hostel will be on f.ex. Hostelworld.com, bookings can be made. But everything needs time, so don't hope for too much. It's better to listen to some experienced guys/hostel owner, they know more about it than me.
Sill waiting for other adices

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fabio31

14 years

What do you think about that place :

http://www.seloger.com/257544/48886141/detail.htm?p=BBCPo8jAAAXcAA

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Patrick

14 years

Bonjour/Hello,

From my point of view not feasable: remember it is an ERP (etablissement recevant du public):
1/ Safety: fire escape, enclosed staircase, non burning material in rooms, complete new electric system...
2/ Disabled access (min 90 cm wide doors and so much more)
3/ Destination of building: even if zoning is OK, new destination with probably building permit, agreement of owner...

Perhaps you can run as "chambres d'hotes" (it is not an ERP, BUT 15 people/5 rooms max (and officially renting rooms only, not beds); you have also to live there, it has to be your permanent address.

Good luck !
Patrick

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fabio31

14 years

Hello ! thanks for your reply !

Do you already have an hostel in france ?

Fabio

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Patrick

14 years

Salut Fabio !

I don't yet operate a hostel, but opening scheduled 2010; near Fontainebleau, mainly for foreign boulderers/climbers; listed as "gite d'etape"; building acquired by municipality for this purpose (but all rebuilding for me !)

Website (only French, English version soon, still in construction):
www.fontaineblhostel.com

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