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Is it a good investment for buying a youth hotel..

And run it?little risk?will it increase in value?

post 10.Jan.2012, 05:59 PM
Post #1
Joined: 5.Jan.2012

hi there,
i want to start a business in sweden,currently trying to look for some good projects to invest.
as far as i know,Europeans (&most people in the world) tend to love travelling,
when they leave their countries to settle in another,accommodation will become one of the most
important issues for them.cause it's irreplaceable.

is it a good investment for buying or contracting with a youth hotel and run it?is it risky to invest it due to the
very long and cold winter and is there other invisible risks that i haven't found out yet?

are there good prospects in it or just abandon it, trying to find other far more realistic projects instead?
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post 10.Jan.2012, 06:19 PM
Post #2
Joined: 10.Dec.2010

I am not trying to discourage you. The idea is possible however from what I understand you are from China. Nothing wrong with that but no business will work in Sweden until you have spent time here, understand the language and people some. There is so much to learn in order to successfully run a business here. I believe your Swedish is non-existent and by your admission English skills not good. If however you simply wish to buy your way into Sweden by throwing money at a business, fail or not, that is possible. Good luck.
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post 10.Jan.2012, 07:50 PM
Post #3
Location: Dalarna
Joined: 5.Apr.2006

I think there is some good advice from johnjohn

You would need to understand how to run a business in Sweden and tax rules etc plus be able to converse with customers in Swedish and a Swedish website to attract business

Youth hostels can be a huge risk but it all depends on location - in rural areas it may be that you would only be full in the summer (6-8 weeks) or if there are local sports events etc

So it would tough without knowing the area
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post 10.Jan.2012, 08:12 PM
Post #4
Joined: 20.Sep.2011

by it's very nature a hostel is at the budget end of the market it won't ever make you rich. If you are lucky and able to hold some events at it, these will only subsidise those avenues which are less successful, like keeping it staffed, heated, lit even though you only have a few guests for many weeks of the year.

The UK youth hostels have struggled massively over the past decade, this is despite re-inventing themselves and offering single, double rooms etc.. Rental hostel scheme out of season (ie the whole hostel). Do some googling and read up on the UK hostel scene and how it's suffered. Might help you avoid the same failings. Many UK ones have been sold off.

The right hostel (or building to become one), in the right place, can work a dream. I know folk who did it. However, you need to market events years round. Easter, Mid summer, Halloween, Xmas, etc.. to do this you will need to understand the Swedish market and traditions, what folk are prepared to pay too. There is also accommodation for special events, sports, weddings, business (some area of sweden have many factories, but often very few hotel/motels).

It's a minefield, and unless running this kind of thing is something you are already competent at you'll struggle massively once you factor in not knowing the country or it's people.
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post 24.Mar.2012, 05:53 PM
Post #5
Joined: 5.Jan.2012

thank you all
they are really helpful smile.gif
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post 24.Mar.2012, 06:43 PM
Post #6
Joined: 16.Jan.2008

Opening a campground may be another alternative.
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