buying a hostel

[Davidglen77]

I would say avoid it, especially if you are not going to buy the real estate. The operating costs here increase almost monthly, also building inspectors will be constantly coming to your place and will try and get bribe money out of you. You will constantly be told to add more fire extinguishers, door latches, safety equipment, ventilation, etc. All to try and get you to pay a bribe to avoid having to meet new "safety" requirements. Also a hostel is pretty much a 24 hour job, plus security issues, unknown people in and out all the time. Again if you buy the building it's somewhat feasable, but renting the building it's unlikely you will make any money and may even operate in the red. Then employees, well be prepared for that one, it's very difficult to get people to work those shifts and if you do get them to work at night or on weekends you have to pay double time AND if you pay people in negro (off the books) they will eventually file a lawsuit against you and you will lose for sure.......

 

[Matt84]

Hi Alex, kudos for looking for adventure!

One of my biz partner, the one in B.A., indeed runs a rather well-known hostel in Palermo and he's about to chose whether to renovate his 10year lease. I don't run it with him, we're partners on another business which has nothing to do with either hospitality or Real Estate (although I'm flirting with doing something hospitality-related in Uruguay)

The inside info mimics what's been stated up there: These last 10 years of inflation-induced growth in Argentina have been seemingly very favorable for tourism, but that's beginning to decline as tourists smarten up to this country's inflation-adjusted costs and as the numbers hit the fan. Brazilians keep coming but those are the better off Southern Brs who have certain standards.

By now this hostel runs itself, has a very recognizable name and extensive clientelle and a tried and proved personnel, providers, security...
IMHO, All it needs is better marketing and new blood!

As I was telling you, I don't have a vested interest in this business but I'd be glad to both have a cup of coffee (or green tea) with you and should you want, introduce you to the this hostel's partners.

PM'me for arrangements, or just if you wanna know the name of the hostel in question.
Either way you're probably going to gain some insight - and in turn you might encourage me to take a risk with my Uruguay project. Love to hang out with psychoanalysts outside the consult .

Matt - in B.A.

By the way David just made the most accurate description of running a hostel in this city. I don't know how or whether to say this, but.. in the example I was suggesting, the guy has it "figured it out".

 

[Alex1]

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

that is a very powerful quote - thank you, it is also very familiar, where is it from?

 

[Alex1]

I would say avoid it, especially if you are not going to buy the real estate. The operating costs here increase almost monthly, also building inspectors will be constantly coming to your place and will try and get bribe money out of you. You will constantly be told to add more fire extinguishers, door latches, safety equipment, ventilation, etc. All to try and get you to pay a bribe to avoid having to meet new "safety" requirements. Also a hostel is pretty much a 24 hour job, plus security issues, unknown people in and out all the time. Again if you buy the building it's somewhat feasable, but renting the building it's unlikely you will make any money and may even operate in the red. Then employees, well be prepared for that one, it's very difficult to get people to work those shifts and if you do get them to work at night or on weekends you have to pay double time AND if you pay people in negro (off the books) they will eventually file a lawsuit against you and you will lose for sure.......

Amazing stuff I would have never known, many thanks David. The hostel is not in BA but I assume same issues will apply anyway. Being a foreigner and not knowing the regulations and the lingo fluently (things are difficult enough for the locals !!) is going to be impossible too.

cheers

 

[va2ba]

Amazing stuff I would have never known, many thanks David. The hostel is not in BA but I assume same issues will apply anyway. Being a foreigner and not knowing the regulations and the lingo fluently (things are difficult enough for the locals !!) is going to be impossible too.

cheers

Out of curiosity, where is the hostel?

 

[jb5]

Alex, if there was anything to sell, the current owner would have sold it. That could have included "good will", which would be an established reputation that hands you confirmed bookings. It could be furnishings, a long term lease in a great location.....

You need a real estate advisor. Check out the admin, Perry, or maybe he can suggest someone.

 

[Andrewchase]

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.
.

This sounds like the standard Argentine business model to me. I say this after a decade of experience. The customer is the enemy!

 

[Fabe]

Mr English Gaucho,
Not to poop on your shoes , but that isnt much of an estancia for what you are charging.
Im not getting the volunteerism offer you have on the website. Is that an opportunity for someone to volunteer so as to help you make more money aside from that "report" you are peddling ?
I'd give you more serious thought if you were a bit altruistic , like offering that guide for free to the members of this forum, like MOST of the inmeasurable advise that is given here every day by people that "live" it.

 

[maiguss]

Hi Matt,

i just read your post and I would be very interested in meeting your partner. I just moved here after very successfully taking over and running a hostel in Christchurch, New Zealand and have plenty of experience how to do the marketing in testing times for tourism (and they have been testing considering that we were having rather strong earthquakes for the past 15 months but still managed to stay full).

As i am new to the site it seems i can't personal message yet, so I'd love to hear from you or your partner. My email is [email protected]

Have a good day

Marcus

BTW: i might also be able to give you some general advice on hostel marketing for your "maybe" project in Uruguay. I have time enough at the moment

 

[Matt84]

Hi Marcus!

Already mailed you with contact details (or in draft but about to go out). Fortunately I'm staying in this city for what's left of January and myabe the summer and indeed would love to chat. So many people (on both shores of the River) give me so many reasons not to open a mid sized establishment, but I have seen it worked (I've also seen owners micromanaging every detail because it seems to be impossible to delegate!).
In any case I'd love to pick your brain and share experiences.

Guo nian hao!