Executive Summary: Our proposed hostel is a three-story building located in a prime location in the

city, easily accessible by public transport. It will have a total of 50 rooms, each equipped with modern
amenities to cater to the needs of budget-conscious travelers. The hostel will offer a comfortable and
safe environment for backpackers and young travelers, who want to experience the city's culture
without breaking the bank. Our mission is to provide affordable accommodations without sacrificing
comfort, cleanliness, or safety.

Facilities and Amenities: The hostel will offer several facilities and amenities to make the guests' stay
comfortable and enjoyable. These include:

• 50 rooms, including private and dormitory-style rooms

• Shared bathrooms and toilets on each floor
• A common area with comfortable seating, TV, and games
• Free Wi-Fi access throughout the hostel
• 24-hour reception desk
• Fully equipped kitchen and dining area
• On-site laundry facilities
• Lockers for securing personal belongings
• Bed linen and towels provided
• Daily cleaning of rooms and common areas
• Secure access to the building with key cards

Costs Involved: The estimated cost for setting up the hostel is as follows:

1. Property: The cost of acquiring a suitable property is approximately $1,000,000.

2. Renovation: The estimated cost of renovating the building to turn it into a hostel is
approximately $500,000. This includes the cost of installing new plumbing, electrical wiring,
air conditioning, and heating systems, as well as painting, decorating, and furnishing the
hostel.
3. Operating Costs: The estimated monthly operating cost of the hostel is approximately
$25,000. This includes salaries for the receptionists, cleaning staff, and maintenance crew, as
well as utility bills, internet expenses, cleaning supplies, and other miscellaneous costs.
4. Marketing and Advertising: The estimated cost of marketing and advertising the hostel is
approximately $50,000 per year. This includes the cost of creating a website, search engine
optimization, social media advertising, and other marketing expenses.
5. Contingency Fund: It is recommended that a contingency fund of at least $100,000 be set
aside to cover unexpected expenses such as repairs, renovations, or other unforeseen
circumstances.

Total Cost: The total cost of setting up the hostel, including property, renovation, operating costs,
marketing, and contingency fund is approximately $2,850,000.

Revenue and Profitability: The hostel will charge an average of $30 per night per guest. Assuming an
average occupancy rate of 70%, the hostel can generate an estimated revenue of $383,250 per
month. After deducting the estimated monthly operating costs of $25,000, the hostel can expect to
make an estimated profit of $358,250 per month. This translates to an annual profit of approximately
$4,299,000.

Conclusion: Our proposed three-story hostel is an exciting and profitable investment opportunity
that offers affordable accommodations to budget-conscious travelers. With the estimated revenue
and profitability, this project has the potential to generate a healthy return on investment in a
relatively short period. The hostel's location, amenities, and competitive pricing will make it an
attractive option for backpackers and young travelers looking for a comfortable, safe, and budget-
friendly stay in the city.