buying a hostel

[Alex1]

Any advice on buying and running businesses in Argentina please? specifically a hostel.

thank you

 

[steveinbsas]

So, if I understand correctly, you want advice regarding a hostel takover.

(Sorry, I couldn't resist. )

 

[Fabe]

I think the Hostel boom as come to a sorry end. Specifically because the poor service and they way they were run.
Certainly tourist traps. I stayed in 2 in buenos aires. one was a glorified flophouse that masqueraded as a hostel. The other one had no hot water the following morning and no excuses and no apologies were made.
Dirty , smelly , bad service , vomit smell and certainly party crowd.
I remember the continental breakfas was served by a woman holding her two year old- who had half her belly rolls hanging out her blouse , and consisted of an unwashed cup of cofee and a jar of dulce de leche whos spoon had much hair stuck to it
What you might consider is an hosteria(bed and breakfast) in the outskirts of buenos aires.
I am working on getting this place squared up and the idea is to cater to the demographic of people that want a day of relaxation in the campo. Yoga classes perhaps. , That kinda thing.
I would consider an investor.PM me for more details.

 

[steveinbsas]

There is a very nice hostel in Recoleta on Uriburu between Santa Fe and Aranales. I posted about it several years ago after checking it out for some expats.

http://www.ba-h.com.ar/petit-recoleta-hostel.htm

The rates are very reasonable..as low as $28US per night.

But if it was for sale it would the price would probably be at least $500,000US...possibly much more.

Another member recommended this hostel at about the same time:

http://www.hotel-liondor.com.ar/indexEnglish.htm

Hopefully, this will give you some idea of what the better hostels have to offer.

Given the published rates, it doesn't look like the ROI is very attractive.

 

[jb5]

If it involves bricks and mortar, and you cant pack it up and easily move over night, just say no! This is AR, where rules pertaining to your business change daily. Look at Lima.

 

[PhilipDT]

The only nice thing about a hostel is most of them are run more or less (and usually more than less) en negro.

 

[Alex1]

The current hostel manager is due to close and leave in March, so technically if I wait (and if am serioud enough to do this) till then and enter into a rental contract with the building owner. this will save me paying the current hostel manager for the business - disadvantage being that I will have to re-establish the place. the place is ok but I am concerned as I have not done this before (technically I am a traveller) and if I can stick one place for couple of years or not.

Currently I do not know what the rental agreement is going to be for - might be for a few years and dont know what if any are the get-out clauses. I do know that the rent is going to go up by 20% per year.

When I arrived there was another guy "pete" who told me he had just bought the place - but he left couple of weeks ago dropping out of the deal - the manager told me that this was due to high deposit 15000 peso and the hefty guarantees (two properties) required by the immobilaria.

I also dont know what the situation is for a foreigner to invest like this.

there is a guy who has worked here for couple of years and tells me it is not very complicated and can be run by two people.

the place is gernerally pleasant, seems to attract more locals than tourists. it is not terribly busy but I think that can be remedied, hopefully.

so: lots of ifs and buts and doubts - I know, but it is big decision.

I dont necessarily have to do this but the situation has come up so worth a consideration.

 

[Alex1]

nice one, thanks for the smile I got.

 

[Alex1]

So, if I understand correctly, you want advice regarding a hostel takover.

(Sorry, I couldn't resist. )

that is funny, thanks.