Budget Hotel Investments, Choosing a Profitable Cooperation Scheme. The concept of a low-cost hotel has been introduced in the US. Investors, including hotel chain managers, are tempted to play in budget hotels. Of the 10 world players, eight of them are from the US. It is not strange, if many new concepts were born from them.

Indonesia seems to be grateful for the expansion of Tune Hotels.com, which is the first to offer a budget hotel concept. His presence is another form of inspiration for AirAsia’s success in offering low-cost flight services.

Tune Hotels, The Best Reference for Budget Hotel Investments

In 2013, the Tune Hotel network reached 584 worldwide, including Indonesia. Following the opening of Tune Hotel Pasar Baru in Central Jakarta, 12 July 2012, Tune Hotels will launch seven more properties.

The plan will be realized through cooperation in regional franchise agreements with Red Planet covering China, Indonesia, the Philippines, Thailand and Bangladesh.

On December 10, 2012, Tune Hotel Pekanbaru, Sumatra will operate, and six other plans this year, such as Tune Hotel Makassa, Tune Hotel Solo, Tune Hotel Tangerang, Jakarta, Surabaya and Bekasi. There are those who are already operating according to schedule, but some have not been heard from, such as the one in Surabaya.

The concept of TuneHotels.com is simple, because it “pays what is used”. Many positive responses from customers are due to reducing room rental rates. To make it appear that you don’t imitate, many other budget hotel concepts have sprung up, with varying initial capital as well.

Partnership The Santika Group offers the Amaris and Santika brands, provided the partners own the land. Amaris Hotel is a minimum of 1,000 m2 while Hotel Santika is 1,000 m2 to 1,500 m2.

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Amaris Hotel, The Next Consideration to Arrange Your Budget Hotel Investments

The location of Amaris land must be close to the center of the crowd because the concept does not require many facilities, such as restaurants or sports venues. Access to public facilities is also quite a lot. Meanwhile, the Hotel Santika concept can be built in the second largest city in the province.

After the land and location, the partners prepare funds for hotel development, as well as its contents. Initial package funds include hotel construction permits from the local government, technician fees, consulting fees, and preopening fees.

Managers and partners then establish a profit sharing system. The total revenue earned by the hotel will be included in the partner’s account. However, partners have to pay for hotel operating costs, 50 percent to 60 percent of total revenue.

The Weaknesses and Strengths of Building a Hotel Property Investment

Meanwhile, Whiz Hotel requires an area of ​​1,000 m2 to 1,500 m2 if you want to be a partner. The location is in a premium area, such as the heart of the city or the center of the crowd. Intiland offers several cooperation schemes. For example, the land lease system, or if Whiz Hotel is only an operator, partners must prepare funds of approximately Rp. 50 billion to Rp. 70 billion.

How Much We Allocate for Doing Budget Hotel Investments?

With that capital, it could be back in eight years as long as the average hunia was 70 percent with a selling price per room of between IDR 300,000 to IDR 500,000. The room capacity of the Whiz Hotel is 120 to 150 rooms.

Meanwhile, PT Metropolitan Golden Management (MGM) offers four choice packages of Horison Hotel in the three and four star classes, Gren Horison Hotel (five stars), budget hotels with the name Red Dot Hotel and @HOM Hotel, or Aziza Hotel for sharia management.

For budget hotels, there are a few differences. Red Dot Hotel is equipped with meeting room facilities while @HOM Hotel is minus this room.

In addition to location, MGM will look at the feasibility of the location offered by partners, whether it is close to the target of business people or not. After the land is cleared, the partners then issue budget hotel funds, around Rp 350 million per room. Minimum capacity of 100 rooms or an investment of IDR 35 billion is required.

All matters of hotel management and promotion will be handled by MGM. Even so, partners may provide input such as the arrangement of the hotel to make it lassy or in building design.