The Aparthotel/Hostel

Business description

Goal:

Attraction of investments in the amount of up to 4 000 000 in operating a profitable business in the field of short term stay in the city of Irkutsk to the average annual yield of 17, 5% per annum.

Team:

I am the founder of the project. During his career, has successfully implemented 4 of the business project total cost more than 100 million rubles.

My team speaks 6 languages and has three 7 years of experience in the hotel industry abroad. For 3 years we have achieved a satisfaction rating at 4, 5 points and become the best hotel of the 2015 version of the National Booking Award in Irkutsk.

The situation in the industry:

Factors such as the state program of development of tourism resort area, the docking station in Asia, major structural projects in the oil and gas industry create a huge flow of visitors. According to Rosstat, in 2017 only air flow was almost two million people, of whom 30% are foreigners.

Problems in the industry:

Going to another city, each person solves the problem “where to stay?”. You have a choice, to stay in the hotel where expensive, crowded, it can be placed in an awkward place in the season.

Or to seek private proposals for daily rent, where also problems, might not work in the night, unable to provide accounting documents, do not give any guarantees, there may be dirty or pictures do not correspond to reality, the difficulty with communications in the end, if you are a foreigner.

Our solution:

Our solution to this problem: our apartment two times cheaper and two times more than a hotel room, we work around the clock, we have service hotel, our apartments are located in key points of the city, the existing standards of cleanliness and freshly renovated to guarantee comfort and convenience. Also a very important feature of this solution is the possibility of dynamic scaling of the business depending on demand.

Our company created on the basis of modern IT solutions, which allows you to manage all aspects of the activities of the company from anywhere in the world.

Business model:

The company's business model is based on the conclusion of long-term lease of premises with the subsequent placement of them in city visitors.

The results of the development project for 3 years:

We today, 26 apartments with a unique style, modern and comfortable hostel, we have a high occupancy level of 83%, more than eight thousand of satisfied guests, 70 of sales channels and a range of additional services.

Finance and future plans:

In 2016 we have reached a positive return, by 2017, we managed to grow 10 times to earnings of 16 million rubles. For the next 4 years, we will grow in 2 times up to 26 000 000 rubles with the planned increase in profit from 29% to 45% in 2021 and occupation of 15% of the market short stays.

Investments are necessary for: extension of hotel rooms, development of additional service, replenishment of working capital.

The completion of this phase of investment will allow for the start of next season to become not only the best but also the largest apartment-hotel in the city.

On request, ready to provide additional information.