December 21, 2021

Pet Hotel Business Plan

Pet hotel business plan

Summary of the project “Hotel for animals.”

The project aims to open a hotel for pets with 45 beds to provide services for their overexposure and temporary accommodation. The hotel for animals will be located in a two-story house with a courtyard within the city with over 500 thousand people. The main guests of the hotel will be cats and dogs, including large breed dogs and small animals. Cat owners can take advantage of apartment overexposure – placing animals in specially equipped indoor enclosures. Dog owners will have access to both apartment and open-air cages.

The cost of the hotel project for animals, considering the purchase of equipment, registration and registration, the creation of the site, will be 705.5 thousand rubles. The start of the project is scheduled for early May 2021. The hotel can be expected to reach its recoupment rate after 1.5 years of operation.

 KEY FINANCIAL INDICATORS OF THE PROJECT       UNIT
Discount rate, %17
Net Present Value (NPV), RUB2 847 195
Net profit of the project, rub.40,000 – 280,000
Return on sales,%13.22
Payback period (PP), monthseighteen
Discounted payback period (DPP), months21
Profitability Index (PI)%4.04
  1. Description of the industry and company

Approximately every third Russian has a pet at home. There are about 20 million dogs and 35 million cats in households in Russia, not counting other animals such as turtles, birds, and fish. Recently, the country has seen an increase in the number of domestic animals. This is especially evident in big cities, where owning a cat or dog quickly becomes the most efficient way of interacting with nature and the finest stress reliever. As the well-being of the population grows, so does the spending on pets. On average, in 2015, they amount to about 1.5 thousand—rub per month. In large cities, there are more outlets providing services to animals:

  • Veterinary centers.
  • A hotel for animals.
  • Grooming centers where a pet can get a haircut, as well as overexposure centers.

The pet hotel is a new phenomenon for our country. The need for establishments of this kind among pet owners arises when it is necessary to leave a pet under the supervision of a pet during an absence – when going, travelling, travelling, etc. There is often no one to leave a cat or dog with, and there is little trust in the temporary owners involved in overexposure. Usually, detention conditions may not coincide with the desired, and it is difficult to predict whether the animal will be properly looked after, whether it received good food, etc. The hotel for animals takes over the solution to all these issues. Until recently, this business has developed spontaneously, not enjoying the sufficient trust of pet owners. Recently, however, the hotel services market has become more civilized: 

In particular, the Zooboking.com database contains more than 200 pet-friendly hotels. Most of them are discovered in big cities. According to 2 GIS data, in 15 cities with over one million in Russia, one can count more than 100 offers from hotels for animals. Pet infrastructure can be expected to improve shortly. There are prospects for such a phenomenon as tourism with animals. In particular, since December 2016, Russian Railways has allowed passengers of reserved seat cars and carriages with seating for long-distance trains to transport pets. The authorised transportation includes dogs, rabbits, guinea pigs, hamsters, birds, turtles, fish.

This project aims to open a hotel for pets to provide services for their overexposure and temporary accommodation. The hotel for animals will be located in a two-story house with a courtyard (owned by an entrepreneur), with over 500 thousand people within the city. The main guests of the hotel will be cats and dogs, for which up to 45 beds will be available in the hotel, as well as small animals (rodents, birds, etc.). The hotel will be divided into several zones. The second floor of the apartment will house rooms with rooms for cats and small animals. Rooms for dogs will be located on the ground floor and in the courtyard area. The owners of the latter, in particular, can choose one of two ways of keeping: indoor (suitable for small, medium-sized dogs and puppies) and open-air cages (with placement in covered enclosures in the yard). The yard will be equipped with several fenced areas for conflict-free, simultaneous dog walking. The objectives of the hotel for animals will include:

  1. It ensures the safety and comfortable keeping of the animal in the place of its temporary stay.
  2. Provision of measures aimed at preventing the possible escape of the animal, injury, and any damage during the stay in the hotel for animals.
  3. Control over the animal’s well-being, supervision of the veterinarian, and the provision of veterinary assistance if necessary.
  4. Organization of timely nutrition of the animal, access to drinking water.
  5. Organization of outdoor walks (for dogs).
  6. Compliance with sanitary and hygienic standards during maintenance: regular cleaning, disinfection of places of detention.
  7. Informing the owner about the condition and behavior of the animal.

The organizational and legal form of business will be an individual entrepreneur. The simplified taxation system is 15% as the taxation scheme. The pet hotel will be managed by the project owner, acting as the chief administrator. Directly subordinate to him will be the staff and hired employees who organize the supervision and care of the animals.