Over the past few years I've spent months travelling and staying in various hostels around the world. Now, at 22 years old, I'd like to settle down in here in London. For a while now, I've dreamt of opening my own hostel and it's only recently that I've actually started to think about it seriously. Until now it's always been a dream that I didn't think was actually possible but why not?
I'm in the very early stages of planning and getting ideas into my head but before I continue I would really appreciate some information on whether my idea is realistic.
I'm 22 and live in London. I don't own my own property and would require a hefty loan to get started. I don't really have a credit rating; either good or bad. I could probably save and invest close to £10,000 of my own money but this is the most that I could raise myself. The rest would need to come from a bank.
I would be hoping to start my hostel in London. Costs will probably dictate that I won't be that close to the centre but I'd like to be as close as possible and with good transport links. I'd be thinking of starting a small hostel with around 25-30 beds.
So.....money. I know that there are a million variables and it's impossible to be accurate but that's not what I'm looking for. Could anyone provide a very rough estimate of the amount of money required to go ahead with this? Importantly could anyone provide some insight into the likelihood of me securing the required funds in the form of a loan? Essentially what I want to know right now is whether this has any chance of working and then I can take it from there.
Thank you very much to anyone who can provide any insight.