Located on Sukhumvit Soi 11, a profitable 50 bed backpacker hostel is up for sale. After 3 years of operation, the business has established itself as a well known destination for travelers looking for budget accommodation. Consistently outperforming hostels throughout the city in occupancy rates and total bookings, the hostel has developed an online reputation through a large number of reviews on all major booking sites. There are a total of 6 dorm rooms which accommodate 50 guests. Each dorm room has a full bathroom. The building is over 320SQM. The ground level is dedicated to the common space which functions as both a restaurant and bar. The ground level has a full bar. There is 40SQM dedicated on the first floor above the bar area to kitchen, laundry and storage facilities.
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The hostel currently takes in revenue from selling dorm beds, laundry to both hostel guests and outside guests as well as transport tickets to guests. Hostel guests also purchase food and drinks from the bar and restaurant area. Due to pregnancy and recent birth of a child the owners have not for the past 8 months attempted to sell food or drinks to non-hostel guests. The location of the building on Sukhumvit Soi 11 provides a great opportunity for anybody looking to create a restaurant and bar on premises.
The hostel has been profitable since opening. There is a large upside potential for new owners to increase profits significantly through the development of the bar and restaurant business on the ground level. Anybody with experience operating a bar or restaurant will have no problem increasing profits from selling food and drinks while the hostel continues to operate and profit with minimal effort.
There are currently three full time employees who see to the day to day operations of the hostel. Current owners have been mostly hands off of hostel operations for the past four months, making this the ideal situation for somebody to have the hostel cover all expenses and add to profits while they develop a thriving restaurant and bar.
The building is on a 3 year lease with first right of refusal for renewal. Current lease terminates February 28, 2022. Current rental fee is 95,000 THB and in 3 years on lease renewal this will increase to 110,000 THB.
The business for sale is registered with 2 million baht capital, so a foreign can obtain a work permit through the company.
The business is for sale for 2.5 million baht.