Hostel in the Centre of Riga

Description

Business for sale – a hostel in the centre of Riga. Do you want to enter hospitality business, look for opportunitiy to own a stable, profitable, fine-tuned and optimised business with perspectives in this industry? It would be very difficult to find another matching opportunity of this kind.

The hostel is situated in one of the most convenient and easy accessible places in the centre of Riga. Apart form individual customers the hostel has a lot of regular customers thanks to very well made relationships to different groups, organizations and events participants. Those together make hostel’s income.

The hostel has reached high scores and positions in booking.com and other reservations resources. Has its own home page and is active in Facebook. From the cutomer reviews one can read that customers higly appreciate location, price/quality ratio and the staff.

Established in 2006. Owner and staff have gathered huge experience in customer aquisition and maintenance of the hostel. Has optimised processes, suppliers, management systems and has amazing efficiency in operations.

Rental agreement is signed till 2023.

There are 24 fully equipped rooms (1-6 beds) located on 2 floors and having total space of 457 m2. It can accomodate up to 86 guests (up to 95 with extra beds). It has registration office, both in-room and shared showers, toilets, laundry and utility rooms, kitchens, WiFi, TV, video surveilance and fire alarm. 

In 2006 turnover was 48 th. EUR, profit 16 th. EUR. In 2017. forecast (with very conservative approac) is for turnover 74 th. EUR, profit 23 th. EUR. The hostel was operatiing on one floor till 2017 and from 2017 it expanded to 2 floors adding bigger part. It has potential to grow both turnover and profit compared to 2017 in next periods.

Main expence positions consist of rent of premises, salaries, utility bills, commissions for agencies and room maintenance costs. 

Present owner has interest in successful continuation of the hostel’s operations, therefore he will provide all the information and know-how to the new owners in the transition period.

Stability investment and great potential to develop further based on the acquired experiences and expansion in 2017.

100% of share capital is for sale.