Good Bye Lenin Hostels (www.hostels.goodbyelenin.pl) is looking for a person who want to take over very good and profitable project of opening new hostel next to the market square in Krakow or participate in opening it with Good Bye Lenin company.

Presently the company runs 2 hostels in Krakow:

1. Good Bye Lenin Pub & Garden - www.goodbyelenin.pl , 76 beds from 2006.

2. Good Bye Lenin - Let's Rock - www.letsrockhostel.com 48 beds from 2008.

2. The new project will be bigger with a very low rent 5,9 Euro/m2 and financially very effective. It will be Good Bye Lenin - Revolution www.goodbyeleninhostel.com . It will have 115 beds and it will generate profit of aprox. 60 000 Euro anuuallyy.

Unfortunately during the preparation it occured that the building needs some extra renovation which made the costs of opening the hostel excessive for the company.
Entire investment it is aprox. 200 000 Euro net, but in order to realize company needs 290 000 to secure safe cash flow as there has to be VAT paid on the way (which will be reimbursed to the company according to Polish law), as well some renovation costs are theoretically paid by the owner of the building but by reducing the rent during the one year.

The company already spent 25 000 Euro for preparing all legal documentation, projects, receiving construction permit, etc. We have another 60 000 Euro but the missing difference cannot be covered even with a bank loan.
That is why the company is looking for an investor who can participate in 75% of investment costs as well as in 75% of profits for the time of 8 years. The return on investment is 36 months.
It would be done by creating a new company which would be owned in 75% by the investor and which would run the hostel for specified time. We do not expect active work from investor. The entire process would be secured by our company which has 6 years experience and very good management team prepared specially to open a new hostel and run 3 hostels in Krakow.

There is also an option of buying the rental contract with all the prepared documents, permissions, projects, offers and agreements. It allows launching the project immediately. We are open for this kind of offer. The price we are looking for in this case it would be 30 000 Euro.

Conditions are negotiable but case is urgent because we either have to terminate the contract, either start the construction in June.

Please have a look at attached financial projections HERE. If you have any questions do not hesitate to ask.