How to Open a Hostel From A To Z.

The network of hostels "Narnia" plans to expand into Russian regions. The creator of the network, 22-year-old Anna Pulcheva opened the first art hostel "Narnia" in January 2012, now in St. Petersburg there are three hostels network. Today Anna is ready to share her experience with those who want to open their hostel.

About the hostel
I opened the hostel in January, this is a good season. The total area of our premises is almost 400 sq.m. In this square there is a hostel, coworking, massage room, music studio. All preparation for the opening was done in a month. My starting capital was 60,000 rubles, then I began to sell my equipment, because the repair was very expensive. Total it turned out about 200 000 rubles for rent per month and 80 000 rubles for current repairs, purchase of the first furniture and shower cabins. We did a lot on our own, because there was no money. At that time, I had no idea how the hostel works.

About the beginning
The rooms were designed by designers in exchange for living in a hostel, some of the furniture and design items were given to us by friends. If you ask friends in social networks, you can find a lot of interesting things for free. At the start, it's important to minimize waste. It makes no sense to immediately make a good repair or buy 20 beds. Make the first sales, get an advance payment and buy a bed if they are not enough and people need a place. You can experiment with the price. Now our fork costs 325-900 rubles per night per person, the price includes breakfast. The higher the status of the institution, the level of comfort - the higher the price.

About costs
Start on this market in St. Petersburg can be from the amount of 300 000 rubles. In regions this figure will be greater, because it is necessary to attract tourists to the city. In Moscow everything is expensive, this is also understandable. The biggest expense is rent. If the premises require repairs or you are in good relations with the owner of the premises, you can agree on reducing or completely canceling the lease for the first months. This will allow the business to get back on its feet.

About income
Directly the hostel brings us about 230,000 rubles a month. Another 160 000 rubles we receive from coworking, giving those who want an opportunity to work there and spend time. Best buy double rooms, it's almost 70% of sales. Think about marketing, chips that will attract exactly to you. It is important to think about the entertainment component - we conduct training seminars, play games, let guests draw on the walls of the hostel.

About the target audience
Usually we have people of several types. First, they are those who came to St. Petersburg and are looking for work here. These people make up about 30% of our guests and live with us for 1-2 months. For them the cost of our services per month is 12 000 rubles. Secondly, tourists who come for a few days. It's both young guys and families. Once we had a family with 7 children. The audience is now growing up, from the bar of 17-25 years we have reached the audience of 20-29 years.

About the personnel
We have a constant rotation of staff, only the cleaning lady I changed 16 times. My private difficulty is that I choose people with great potential. Then they grow up and go, and I have to look for new employees. Of the three administrators, there is only one who works and lives with us. I'm looking for employees through friends in social networks or on job sites.

About sales
It is very important to start making sales even before the hostel is open. Otherwise, the first 1-2 months the hostel will be empty. The first sales we did through Vkontakte: they were looking for those who plan a trip to St. Petersburg and wrote personal messages, promoted the hostel group. In the summer, up to 70% of our guests came from social networks. Book seats in a few hours, and for several months. We already have several sales for January.

About occupancy
In autumn the hostel is filled by 45%, but in the summer - by 120%. How is this possible? There were so many people and applications, at night we converted non-core premises or placed people on the floor. The most unkind for the St. Petersburg hostel is February. End of winter, cold, students are few. The best months are June, July, November and December. This is the season of travel, vacation. We are specially preparing for these peak loads. Now people come to us from social networks, from our site, a thin trickle comes from sites-coupons and bouquets.

About the franchise
Naturally, we want our hostels to become larger, so we offer a franchise for their opening. During the first year we cover all the risks of our partner in opening a hostel. Man does not risk anything, except his time. The terms of the partnership are negotiated individually. We can pay a wage to a person or a percentage of turnover, as we agree.

About the premises
The hotel should be located near the tourist routes, have good transport accessibility. Excellent if there is already central heating. In St. Petersburg, you just need to be located near the metro. My personal choice is a room in the center, but in a quiet side street. We found an investor who is ready to invest in the development of our network of hostels. Now we are looking for religious houses or those buildings that the city wants to give away for demolition. We are ready to reconstruct them, then to open a hostel there, which would bring money.

On the issues of cooperation with the hostels "Narnia" and Anna Pulcheva please contact the contacts on the site.