With an increased amount of tourists staying at Hotels as well as B&B’s across the UK could it be a good a business opportunity?
Despite worries over Brexit in Britain, the tourist sector is increasing and by 2025 the industry is estimated to be worth over £250 billion.
With all the positivity and profit from tourism, many people have a dream of owning and running their own Bed & Breakfast. Many are utilising their property’s spare bedrooms to rent out to guests which releases some extra funds. This is appealing to many new B&B owners as they can set-up a guest bedroom with a low budget.
If you are fortunate to own a larger house with plenty of rooms then starting a business might not be difficult but research is highly recommended.
When looking to create the perfect B&B the location and also tourist attractions will help assess if your business has an advantage when opening the guest house.
If you are looking to purchase an established Bed & Breakfast or a property to convert then a business plan is a must as the costs will need to be carefully planned out.
According to Direct Line, the average price of purchasing a B&B is around £562000, obviously, there will be cheaper options depending on the location but it’s worth getting an idea of the price for your potential Bed and Breakfast Business in your chosen location.
The Chief Executive of the industry body the Bed and Breakfast Association, David Weston, said: “Most people start a B&B in their own home at little or no capital costs.”
With an estimation on just two guest rooms, Weston confirmed that B&B owners can produce an income of £30,000 based on a tariff of £70 per night with an occupancy rate of 60pc. With this in mind, it could be worth the gamble to start small and rent out a few rooms. This will test the water and give useful insight to see if it would be worth expanding the B&B business.
Many B&B owners confirm that running a guest house is a lifestyle choice which is not for the faint-hearted. As the day to day running of a B&B is time-consuming with queries online and on the phone, you have to be well organised.
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