There are many types of commercial businesses that prioritize accommodation, but two that top the list of options you can invest in are hostels and hotels. Both have many advantages for investors, but how do you know which one is the right business to invest in? You can't just set up one business and quickly change it to another as it takes time and money, so you need to decide properly in advance whether you want to invest in a hotel or a hostel.
To make it more convenient for you, we have compiled a list of the benefits of investing in hostels and hotels. Check it out below:
Hostels: a budget-friendly investment
8 Bedroom Boutique Hotel for Rent – Sala Kamreuk, Siem Reap
If you want to invest in a business without spending too much time or money, hostels are the perfect investment opportunity. After all, there are only a few things to consider before starting a hostel, such as a suitable location that will attract a lot of tourists, a building, and even personnel. Apart from that, here are some investment benefits you can get by investing in a hostel:
Less capital required
Hostels do not need to be luxurious as they only fulfill the basic accommodation needs of their customers. Therefore, starting a hostel business requires little capital. Generally, the main need of these customers is accommodation and most of them are backpackers, so it may or may not be a shared space. Preparing a building for it, even without parking, is relatively cheap compared to other commercial or residential buildings.
Easy to manage by yourself
In a hostel, there is little need for customer service since most guests are just there to rest, and hostels are not required to serve food, although they can if they wish, meaning hostels are fairly easy to run, either by individuals or with staff.
A wide range of customers
Hostels have the largest customer base as most of the travelers and residents prefer to stay in a hostel especially if it is for a short stay. It is great for business as you are guaranteed to have customers all the time.
Hotels: Success is in the details
25 Rooms Hotel for Rent – BKK1, Phnom Penh
There are many reasons to invest in hotels, especially since they are one of the biggest businesses that customers frequently look for. To know if you should invest in hotels, check out some of the benefits below:
High profit potential
Hotels are always in demand and therefore have a lot of potential to make a high profit throughout the year. Depending on the type of room you offer to your guests, you can set different rates along with the amenities that the hotel offers. Moreover, if you host events in your hotel, you can earn extra profits from it, so investing in a hotel can benefit you in many ways.
Competitiveness
The number of hotels in the city is relatively few compared to residential properties, especially as each hotel varies in quality and service they provide. Now is the perfect time to invest in a hotel, as having too many hotels in one location can make it difficult to enter the market. Cambodia is a developing country, so you will only have a few competitors, but by providing great service right away, you will increase your chances of success and profits.
Beneficial for you
An important thing to consider before making any investment is whether it will be profitable for you. Investing in a hotel will double your investment as you will not only get a profit but also use it for yourself. You will get to directly use all the services the hotel offers, the rooms available, the amenities, etc. Not all investments can do this.
In this case, if you think this is a great thing for you, you should invest in a hotel now. If you don't want to build a hotel from scratch, you can look at our list and find a hotel like this one in Wat Damnak, Siem Reap.