Hostel vs Hotel: Which One Should You Invest in?

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Hostel vs Hotel: Which One Should You Invest in?

ដោយ IPS Commercial នៅ ខែ​ធ្នូ 20, 2022

Amid the numerous types of commercial businesses that prioritize accommodation, at the top of options you can invest in are hostels and hotels. Both provide a lot of advantages for investors, but how can you make sure which one is the right business for you to invest in? Considering that you can’t simply launch one business then quickly change it to the other afterwards, since it will take time and money, you need to properly decide beforehand if you need to invest in a hotel or hostel.

To make it easier for you, here’s a curated list of the benefits of investing in a hostel or hotel. Check it out below!

Hostel: Budget-driven investment

8 Bedroom Boutique Hotel For Rent - Sala Kamreuk, Siem Reap

8 Bedroom Boutique Hotel For Rent – Sala Kamreuk, Siem Reap

If you want to invest in a business that doesn’t take a lot of your time or money, then hostels are the right investment opportunity for you. After all, you only need to consider a couple of things before launching it, including the right location where a lot of tourists gather, building, and even personnel. Besides that, here are the investment benefits you can experience if you invest in a hostel:

Low capital needed

Considering that hostels don’t need to be fancy as it provides only the basic accommodation requirements of its customers, you only need a low capital to start your own hostel business. Generally, the main need of these customers is lodging, which can be a shared space or not since most of them are backpackers. Getting a building setup for this, even without parking, is relatively cheaper compared to other commercial or residential buildings.

Easy to manage by yourself

There is little need for customer service when it comes to hostels, since most of the customers only go there to rest. Moreover, it’s not expected for hostels to provide meals, although you can set it up if you want. In short, hostels are fairly easy to manage, whether by yourself or by personnel.

Wide array of customers

Hostels have one of the biggest customer-base, since most travelers or even residents, prefer staying in one especially if it’s only a short stay. This makes it great for the business since it’s guaranteed that you’ll always have customers!

Hotel: Success relies in the details

25 Room Hotel For Lease - BKK1, Phnom Penh

25 Room Hotel For Lease – BKK1, Phnom Penh

There are many reasons to invest in a hotel, especially since it’s one of the biggest businesses that customers often look for. To know if you need to invest in a hotel, check out some of its benefits below:

Possible high profits

Hotels are always in demand, which is why there is a large potential for high annual profits. Depending on the type of rooms you offer to your guests, you can set varying charges for it, alongside the amenities your hotel offers. Moreover, if your hotel launches events, you can get additional profit from it so there’s a lot of ways to earn when you invest in a hotel!


The number of hotels in a city is comparatively less compared to residential homes, especially since the quality and services each hotel offers, varies. While there can’t be too many hotels in one location, since the market will then be difficult to penetrate, right now though, is the right time to invest in a hotel. With only a handful of competition in Cambodia since it’s a developing country, starting quickly and soon with amazing services, will guarantee higher chances of success and profits.

Beneficial for you

The key thing to look at before making an investment is that it’s beneficial for you. Investing in a hotel doubles that investment, since not only will you make profits from it, but you can also use it for yourself! All the services that your hotel will offer, rooms available, amenities, and more, you can use it first-hand. Suffice it to say, you can’t do this for all your investments.

In this case, you should quickly invest in a hotel now if this sounds great for you! If you don’t want to construct your hotel from scratch, you can look at our listings to find yours like this available hotel in Wat Damnak, Siem Reap.

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