Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

The financial plan for your B&B in Spain

This is our final article on how to open a B&B in Spain.

Let us summarise the conclusions reached earlier in our first 4 themes.

Maria and John are planning to move to Spain and start a bed and breakfast business. They have validated the essential conditions of personal and budgetary aspects.
In order to refine the search criteria, they then had to specify the location of their future B&B. Spain is a large country, very diverse, both geographically and culturally.
In carrying out this study, and based on their common criteria, Maria and John decided to focus their search on a specific area: the coastal region between Valencia and Alicante.

To summarize the conclusions reached in the first four themes, Maria and John have taken the following steps in their journey to open a B&B in Spain:

1. Personal and Budgetary Aspects: Maria and John have assessed their personal and financial capabilities and preferences, ensuring they have the necessary resources, skills, and commitment to run a successful B&B business in Spain.
2. Location: They have recognized the diversity in geography, culture, and tourism opportunities throughout Spain and have narrowed down their search area based on their criteria and interests.
   

   Read more on that here: Theme 4: The Top Spanish Regions for setting up Your B&B

3. Focused Search: Based on their personal preferences, target clientele, and business goals, Maria and John have chosen the coastal region between Valencia and Alicante as their desired location for opening the B&B. This region offers a mix of beautiful beaches, historic sites, and cultural attractions, catering to various types of tourists.

Moving forward, Maria and John should now focus on the following steps:

1. Property Search: Investigate the real estate market in the chosen region, considering factors like property size, condition, and proximity to tourist attractions. They should also evaluate the potential for renovation and expansion, as well as any legal restrictions.
2. Business Plan: Develop a detailed business plan that includes market research, financial projections, marketing strategies, and operational procedures. This will help them stay organized and focused on their objectives, as well as secure any necessary funding. In this article, we will study the financial part of the business plan.
3. Legal and Regulatory Requirements: Research and comply with local laws and regulations regarding business registration, permits, licenses, and insurance. This will ensure their B&B operates legally and avoids any potential fines or penalties.
4. Networking and Marketing: Establish connections with local businesses, tourism boards, and online platforms to promote their B&B and attract potential guests. Utilize social media, a well-designed website, and online booking platforms to increase visibility and bookings.
5. Prepare for Opening: Once they have secured the property and completed any necessary renovations, Maria and John should furnish and decorate the B&B, create a welcoming atmosphere, and train any hired staff to ensure a smooth and successful opening.

By following these steps, Maria and John can successfully open a B&B in Spain and enjoy their new life as business owners in the beautiful coastal region between Valencia and Alicante.

They are ready to tackle the next chapter of their feasibility study.

The last essential roadmap of your Spanish B&B

To pursue a dream is a beautiful thing…. even indispensable. Didn’t Oscar Wilde say, “Wisdom is having dreams big enough not to lose sight of them”?
We can nevertheless put this quotation into perspective. If the dream (and therefore the intuition) is indispensable, pragmatism (and therefore the necessity of profitability) is just as much.
María and John have the budget. So they think the purchase project is doable.

But is the project economically sustainable?

Investing is one thing; being able to last in time is another. A new constraint therefore appears. It is essential that the revenues generated by the management of the B&B must at least cover the costs. It doesn’t have to be right away, but you have to have a road map. He will predict when the business will be profitable and what he will be able to generate in profit afterwards.

This roadmap is called a financial plan.

I choose…. to call a friend!

María and John know a couple of friends who have already done this work. They decide to contact them to help them achieve this roadmap.
It will be an easy job, they say. As the primary objective is not to generate a significant income from the activity, this work should not be very complicated. They call Susan and Daniel, the friends in question.
Susan & Daniel have been managing a B&B in Catalonia for almost 15 years. They have had a lot of difficulties in carrying out their project. In the end, they have succeeded and are now well-integrated socially in the region, and well-referenced in terms of their professional activity.

The telephone conversation starts.
– Hello Susan, it’s John!
“Hey, hello! How are you? And María?”
“Look, we’re doing great. And you: still in Catalonia?”
“Well, yes. We like it, you know. It wasn’t easy at the beginning, but everything is going well.” We are very happy with the change in our lives that we decided on 15 years ago! My God, how time flies! And you, what’s new?
– We even live in a dream…
“Oh, what is it? You have aroused my curiosity.”
– We would like to follow your example and also open a B&B in Spain…
“No kidding…are you serious?”
“Absolutely; you want to change your life…and you think this is the right time.
– Awesome that…. but brave…! Where are you at with the project?
– Time was spent setting our goals, defining our budget and concept and where we want to be.
– Cool. You’re looking for a house then?
– Yes…well, no; not quite yet. We would first like to ensure that the project is viable in the medium term, financially speaking.
– Wise precaution…and what is your conclusion?
“In fact, Susan and I would have liked to discuss this aspect with you and Daniel…so that you could share your advice and experience… Would that be possible?
– Of course…but it will take a little time. If you want to do things properly, you have to spend a little time. You could stay with us for a few days. We would take the time to analyze all this together. What do you think?
“Excellent! I’ll tell María about it; she’ll be delighted. I’ll call you back in the next few days and we’ll organize a little stay with you.
– Listen, that sounds great. Let us know. We will be pleased to share all this with you. We made a lot of mistakes…as much to avoid others do not commit the same! I await your call!
– Perfect see you soon!

Why do you need a financial plan? 

The realization of a financial plan for a B&B implies the pooling of many elements that interact.
At the sales level, the amount of turnover will depend on the location but also on the quality of the services and prices offered.
In terms of costs, the variable costs vary according to the occupancy rate of the B&B. Fixed costs have the advantage of being more predictable, but they are more difficult to compress.
Macroeconomic factors are completely out of control (health epidemics, natural disasters, high inflation, political instability, etc.). They, therefore, do not intervene in a plan, other than by providing a “worst & best case scenario”. This can be achieved by acting at the level of room occupancy forecasts.
Overall, the managers of a B&B have some control over certain factors, but not others.
The plan will therefore aim to forecast, at a time “t”, the B&B’s financial entries and exits over a medium-term period “t+X”, while being aware that external elements can generate an impact.
The plan must therefore be:
• accurate to set a course
• flexible to bringing new data and adapting old ones.
• take into account the B&B and the environment in which it operates

Each decision will have an impact on the whole project

To illustrate the previous point that everything is linked in a financial plan, let us take a concrete example for María and John: massages. They are considering this service proposal to reinforce the “zen” side of their B&B.
The addition of this type of service leads to an increase in revenues, and costs, but also in the time devoted to the activity. María and John will have to make a choice.
They could decide to:
• outsource this activity to a local discipline specialist, but then they will have to reduce their profit margin.
• carry out this activity themselves, but it will be necessary to follow courses, obtain certifications, dedicate a budget for the necessary equipment (table, sheets, towels, massage oils,…),…
Overall, it will be necessary to choose between saving “free” time (if subcontracting) and a gain of financial revenues (if own realization). The decision will inevitably have a financial impact.

The financial analysis of your B&B

Susan and Daniel meet with María and John to discuss the issue and prepare the financial plan together.
First of all, they want to understand María and John’s objectives. The non-exhaustive checklist includes questions such as:
* what are their real goals (a “cool” life, a need for an “authentic” life in nature?)
* What type of clientele do they want to welcome (socio-professional class, social level, cultural background (nationality/country of origin),…)
* Is there a personal touch they want to bring? Here it is a question of identifying unique comparative advantages, which would make María and John’s B&B product exclusive (and therefore offering better control over prices). We can imagine several themes in this sense:
– gastronomy (organic products from the local area, the inclusion of star chefs,…)
– sport (in Spain, disciplines such as golf, horse riding or padèl are very popular)
– culture (possibility of exhibitions of local artists, organisation of concerts,…)
In short, the idea here is to understand what the final “product” is. Based on all of this, we will be able to draw up a plan.

…indicates the following

During this brainstorming, María and John explain that they want to offer
– a quiet and relaxing place for middle to high-class families,
– services such as table d’hôtes and also massage, yoga and pilates
– a place that will be pet-friendly.
María intends to dedicate herself 100% to the B&B while John will continue his current part-time job to ensure a secure monthly income. They also want to minimise any investment outside the purchase of the property. It is possible that over the years they will decide to develop the B&B differently, but they prefer to wait a few years. This will allow them to take the time to integrate into their new environment as well as possible, to get to know the requirements of their clientele and thus to define, with thought and experience, the areas of growth for their business.

Concrete financial planning of a B&B set up in Spain

Here is a plan on which Patrick worked to assist a customer with his financial planning.

With this data, we create a spreadsheet with all the data relevant to María and John’s project. We estimate high and low season prices and occupancy levels. Either we indicate a “mother” cell and, by modifying the value (best/normal/worst case) we determine the impact, or we create 3 spreadsheets (the first one: “best”, the second “normal” and the third “worst”).
Note that when it comes to setting a price for a night in a B&B, three sources can be useful and provide a lot of relevant information, namely
– existing offers from other B&Bs located geographically close by
– discussions with people active in the hotel sector in the area
– the local tourist office
Based on this information, Susan and Daniel prepare a financial table. Here is an example of what the plan might look like, for the year 2024.

Here are the accommodations revenue

Accommodations revenue for a b&b in Spain – Financial planning

Here the extra revenues

Other revenues for a b&b in Spain – Financial planning

The operational costs

Operational costs for a b&b in Spain – Financial planning

And the fixed costs of the bed and breakfast

Fixed costs for a b&b in Spain – Financial planning

All those information should be adjusted for each project and will help you to learn more about the financial aspects of your project and its profitability.

On the basis of this table, we realize that the break-even point for the B&B de María et John would already be reached by the end of the second full year of activity (“t+2”).
Whether that is the case or not is not the most important. What is interesting is that at t+2 time, and on the basis of the information available and the projects currently planned, it would be possible to cover all costs in a relatively short time.

Is this acceptable? Fine.
Is that not the case? We have to look at the data and see where we can reduce costs or increase revenues.
This is where the whole point of the plan lies: to be able to play with the various parameters in order to judge their changes and obtain an acceptable end result.

Our little extra tip

Get help with your project. Test it with your family and friends, and challenge it with your family. Listen to what they say. You’ll have to sort it out because there may be jealousy…or even a desire for you to fail, but it doesn’t matter. You will sort it out and you will certainly come up with ideas that you had not thought of.

General Conclusions to help you with Your B&B financial plan in Spain

María and John are moving forward step by step, in a structured way, in the development of their beautiful project. They are defining the final product more and more precisely. The concept, location and financial plan are defined. The next step will be to find the property…. and detect any administrative loopholes.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

The post How to write the financial plan for your B&B in Spain? appeared first on How to buy in Spain.

How to set up a Bed & Breakfast…and manage it?

“Of course, one day, I change my life and I will run a B&B in the sun!”.
You have certainly heard that phrase in your life. Perhaps you expressed this feeling yourself. Is it a utopia? Certainly not because nothing is impossible but everything can be organized.

Dreaming is essential in this kind of project because it is an ideal of life that is sought after. It is by definition intangible and irrational.
The purchase of a property and its daily B&B operational activity nevertheless requires a whole series of objective and rational data.

Balearic Islands image of Lutz Hirschmann

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you for all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

The post How to set up a Bed & Breakfast…and manage it? appeared first on How to buy in Spain.

Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

The Top Spanish regions for setting up your B&B

Let us summarize the conclusions reached previously. Please find the earlier articles on setting up your B&B in Spain at the bottom of this article.

Maria and John have plans to move to Spain and start operating a guesthouse. The basic conditions are met: their objective is not primarily financial, because they have funds available (€ 365,000) and they love human contact. Remember our first article: Is the life of a B&B Manager for you?

Both Maria and John have different criteria, although compatible: Having a pool, large rooms and a nearby beach is fundamental to Maria. For John what primarily matters are: the reduced maintenance of the property, an available garage and a golf course nearby. If you need a full refresher, here was the article: How to select the perfect bed and Breakfast in Spain?

Once the property is acquired and they start running the business, they also know that they should not skimp on hygiene and safety conditions (swimming pool/fire). It will be relevant to go beyond legal obligations as we explained in our article The Spanish B&B market

We continue in this 4th theme an important phase: the B&B localization.

The top Spanish regions to set up your B&B in Spain are :

1. The Canary Islands,
2. Andalusia,
3. The Valencian Community,
4. The Balearic Islands and
5. Catalonia.

Those five regions have been pre-selected on the basis of data from official tourist supply and demand.

Let’s fly to those regions but here are some good advice.

Our advice: Fall in love with your place!

Expatriation as part of a B&B project has to be viewed from a global perspective.

The goal is to live there all year long. Maria and John, therefore, investigated the region in depth. This means not only from a touristic point of view (because it will be a working place for them)…or just a professional one (because they will also have free time..hopefully!). They travel to these areas, during the low tourist season as well, to be sure that there is a good chance that they will enjoy themselves. Discussing with the local population also enabled them to “feel” the area.

Identify the potential disadvantages

The idea is to try to identify all potential disadvantages because a dream usually hides them. The heart must express itself while leaving room for more pragmatic aspects.
You, as B&B managers & as human beings, will be part of the service provided. Therefore, you have to deeply love the place where you live in order to share your experiences with your guests. More than anything else, this is what will make their stay unforgettable! Your past guests will be your best ambassadors for attracting future ones. Don’t forget it!

Measure the attractiveness of your selected region

That being said, let us focus, in this 4th theme, on the aspects of tourist attraction of the different regions preselected. Maria and John have to think not only for themselves but also for their future guests by answering the following question. What makes their customers prefer their house & region over another one?

Canary Islands

8 islands, very different from each other, make part of this archipelago benefiting from a subtropical climate. Of volcanic origin, they are geographically on the African plate. The Canary Islands is the Spanish region that hosts (after Catalonia) the most foreign tourists.

Maria and John were impressed by the island of Hierro, which is a biosphere reserve, self-sufficient in terms of electrical needs. They also loved the impressive vegetation of La Palma as well as the island of La Gomera, Christopher Columbus’ last European stopover in 1492, the eternal spring of Tenerife, the micro-continent of Gran Canaria with its northern vegetation and its southern deserts, as well as the 3 eastern islands, including the black sand of Lanzarote, not to mention the small island, recently promoted as the region’s 8th island, Graciosa. Tourism mainly focuses on Tenerife, Gran Canaria and to a lesser extent Lanzarote and Fuerteventura.

Know everything on the Canary Islands: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

The conditions of purchase of a property are quite attractive. The general rule in Spain is a 10% registration rate. In the Canary Islands, buyers will only have to pay a reduced rate of 6.5% (purchase value <400,000 €, 7% for new properties). For Maria and John, based on their budget of 365,000 €, this represents a potential saving between 10,950 € and 12,775 €. Quite a substantial amount.

The climate varies a little throughout the year as you can check on our weather infographics with monthly averages for the top 20 Spanish cities. The high season is even considered as December / January. By deciding to settle there, Maria and John could therefore attract guests throughout the year. The occupancy rate of their homes would increase … and thus their financial figures.

Having listed these attractive points, let’s not lose sight of a Canary Islands reality: the distance to northern European countries. Count between, is +/- 3,500 kilometres according to the place of departure, meaning 4-5 hours flying.
Only Gran Canaria and Tenerife are also accessible by direct flights. Going to any other 5 islands will require an internal flight, or even take the boat. With waiting times, and stops, plan a 1-day journey to reach them.

Andalusia

The most southerly region of mainland Spain, which is also the most populous, includes eight provinces, from Cádiz in the west, called the “Costa de la Luz” to Almería in the east, going as far as Córdoba in the north.
It has a large number of golf courses along the coast. We sometimes talk about the “Costa del Golf” rather than the “Costa del Sol“!
Sometimes criticized because the region has suffered from real estate developers’ appetites, the region still has delightful hidden places in small villages, not far from the coast. It sometimes only takes a few miles inland drive to discover them.

Find everything on the Costa del Sol: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

The Costa del Sol is the most famous region in Andalusia but you have three other Costas in Andalusia: The Costa Tropical, The Costa de la Luz and The Costa de Almería.

A tax aspect is also worth pointing out: in terms of inheritance, the property of an Andalusian resident will be tax-exempt up to € 1 million.

As far as coastal villages are concerned, Maria and John have identified several spots. Their “best of” consists of Manilva, Mijas, Nerja, El Varadero and the unmissable Cabo de Gata. They also found beautiful B&B’s already operating on Archidona (1 hour north of Málaga), in the vicinity of Órgiva (near Motril), Conchar (Granada) or Barbate (Cádiz).

Seeing beautiful guesthouses in activity inspires them. Maybe it would be relevant to buy a running B&B, already having its activity license? It could save time and money. We will come back to it later.

The Costa del Sol is the most famous region in Andalusia but you have three other Costas in Andalusia: The Costa Tropical, The Costa de la Luz and The Costa de Almería click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

The Valencian autonomous region

Three provinces are part of it: Castellón, Valencia and Alicante. From the north, the Costa del Azahar (orange trees) opens the way to the Northern part of the Costa Blanca. Going beyond Alicante, we go along the Southern part. Overall, the weather conditions are quite attractive all year long, even in winter, with sometimes milder temperatures than in Andalusia (follow the link to compare any Spanish City weather statistics). Many British people have elected this region as their residency place.

Here is another paradise for golfers; there are a large number of golf courses along the coast.

Last but not least, several airports serve the Costa Blanca all year round: Castellón, Valencia and also Alicante.

Know everything on the Costa Blanca: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

Maria and John enjoyed towns and villages such as Denia, Jávea, Peñiscola and Altea. South of Alicante and not far from the airport, they also noted Gran Alacant which presents new built-up housing with magnificent views of the Mediterranean, located 10 km below.

The B&B touristic offer naturally exists, but the hotel offer primarily dominates, with urban areas such as Benidorm, Gandía or Calpe.

The Costa Blanca is the most famous region in the Valencian Community but you have three other Costas: The Costa Calida, The Costa de Valencia and The Costa del Azahar click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

The Balearic islands

Like the Canary Islands, the Balearic Islands are an archipelago of islands. The three main ones are Mallorca, Menorca and Ibiza.
Mallorca is the largest and most populated one. Tourists mainly come from the UK or from Germany just like Menorca.
Ibiza sometimes presents the image of mass tourism. Although this is not always justified, it is likely that Maria & John’s potential clients are also aware of this reputation and may even share this point of view.
In the Balearic islands, we will talk about “rural hotel”, “agroturismo” or “turismo de interior”.

Find everything on the Balearic Islands: its Airports, stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches.

In terms of climate, average temperatures are around 20 degrees between May and October. This period more or less corresponds with the tourist season, which is spread over 6 to 7 months per year.

The journey to get there almost inevitably involves the plane. The distance to the Canaries is nevertheless halved. On the other hand, going to Menorca or Formentera means internal movements (plane / boat) which lengthen the journey time.

Here, too, María and John will have to be taken into account the legislation on rural tourism in general and guest houses in particular. Rural areas are protected; you can not do whatever you would like to, not any more.

Catalonia

Catalonia is Spain’s main road gateway. One of the important advantages of the region is therefore its location. This can be important for Maria & John because people who choose a “bed and breakfast” mode for their holidays usually ride their cars. This is especially the case if they travel with their family. Coming from the north of Europe, they will discover Catalonia first.
The Costa Brava will path the way to the Costa de Barcelona and then to the Costa Dorada (Tarragona region).

“Between sea and mountains”; Catalonia has everything: better geographical proximity, gastronomic and cultural high-quality offer, and one of the coolest climates in Spain. The coastal areas’ often hilly landscapes have protected Catalonia from extensive urban touristic projects.

Know everything on the Costa de Barcelona: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

In addition, the city of Barcelona attracts tourists all year round. The cooler climate of the region, compared to other Spanish regions, does not therefore represent a disadvantage as such. The heat and the sun are not necessarily the first reasons for going to Catalonia.

Maria and John hit Catalan roads, looking for beautiful “casas de payés”. The favourites of our heroes are Empuriabrava, Calella de Palafrugell, Pals, Begur, Tossa de Mar and Garraf.

In terms of politics; the region is regularly in the spotlight. Catalonia presents a history and a culture of its own, which makes it “different” … just like the Basque Country or Galicia elsewhere. If María & John choose to settle there, they need to know it…and be ready to learn the Catalan language. This will secure a better integration in the local everyday life.

The Costa Barcelona is the most centric Costa in Catalonia but you have The Costa Brava in the north of Barcelona and The Costa Daurada in the South click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

Our general advice

Gather information by reading a maximum of information blogs or websites on “casas rurales”. For example, the Spanish association of rural tourism ASETUR, created in 1997 offers a lot of information, particularly on the legal requirements. This is useful when it comes to check certain details when they have selected the property and to confirm the conformity of the property with the Spanish and regional laws.
This ASBL also proposes a classification of guest houses via “ears”, ranging from a scale of 1 to 5. It mentions the criteria to belong to different categories:

Do you want to discover any region in Spain? Start with this page with all the different maps of the Spanish Costas in Spain with their must-do activities.

Find all our best Spanish Costas infographics: Costa Brava, Costa del Sol, Costa Blanca, Costa Barcelona, Balearic Islands, Canary Islands,…

To conclude

Focusing on the geographical criteria of Maria & John, we realize that they each have one in common: the property must be close to the beach for her, and close to a golf course for him. Willing to benefit from the longest possible tourist season, they eliminate Catalonia, too cool in winter. They also say that access must be easy, so they finally reject both island archipelagos (Canary and Balearic). There are two possibilities remaining: the Valencian community and the Costa del Sol.

Having ridden in these two areas, they finally decided to focus on the Costa del Azahar and the north of the Costa Blanca. This coastal region linking Valencia to Alicante seems to them quite adapted to their project. A mild climate all year long, beautiful beaches and a profusion of golf courses in the immediate vicinity represent solid arguments.

We now have this essential data: the “where”. In the next episode, María and John will introduce us to the Costa del Azahar and Costa Blanca, through some real estate visits. They will share their feelings, explain the way they managed the purchase negotiation … and present their final choice. See you soon.

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

The post The Top Spanish regions for setting up your B&B appeared first on How to buy in Spain.

The Spanish B&B market

Maria and John are now convinced that their near future will include the management of a guest house. That’s done! It is now necessary for them to understand what the Spanish market looks like. This is the goal of this third article.

We will develop the subject following two directions: the type of guest house and their location.
At the end of this chapter, Maria and John will have more keys to:

• select the type of B&B they want
• determine in which region it will be located

What is a Bed and Breakfast in Spain?

Let us first agree on the definition of the concept “guest house“. According to commonly agreed terms, it involves the following ideas:

• a building of traditional architecture, isolated in the countryside or located in a small village, sometimes a former farm, “recycled” in tourist housing,
• tranquility & silence must prevail in its close environment,
• a historical dimension is also assumed, through the maintenance of an architectural style specific to the region concerned,
• the housing capacity must be limited to less than 15 people,
• specific thematic may be presented such as:

–agrotourism with the reconnection of passing travelers with local traditional agrarian and cultural activities

–ecotourism which favors ecological tourism with a set of sustainable energy management parameters

–wine tourism which offers tastings and wine consumption and gastronomic goods produced on the site

It isn’t therefore:

• a hotel in a rural area (the managers / owner (s) often live in the B&B),
• an urban apartment,
• a 24h service offering, minibar, TV in the rooms or daily cleaning service

The concept is so vast, the B&B offers many different experiences. A classification in Spain is in the study phase, but is not yet operational, unlike in France where “ears” or “spikes” give hierarchy of the different guest houses.

For the purpose of simplification, we identify two large groups of B&B in Spain;

• the ones which rent rooms: las casas “por habitaciones” – CH
• the ones which rent a whole building: las casas “de alquiler” – CA

Some regions, such as Catalonia, carry out an additional subdivision, depending on whether the managers exploit (“casas de payés”) or not (“allotjaments rurals”) their farm, in addition to their rural tourism offer.

CH’s offer at least one service: breakfast.

Beyond that, flexibility prevails: lunch and dinner are optional. Some offer a “cooking right” with a space available to guests including cooking hotplate, fridge, oven, microwave,…

CA’s are divided into 2 subgroups.

There are those with a single building, and those consisting of various independent houses with private access. Common areas are available to all, such as swimming pool, garden, living room. In all these cases, there is no service offered to guests on a daily basis.

In the majority of cases, all B&Bs, whether “CH” or “CA”, provide sheets, blankets, dishes and kitchen equipment to their guests.

Contact between hosts and managers is more intensive in CHs. This is the kind guesthouse that Maria and John want because human connection is key in their choice. They wish to make sure that their customers join them in the B&B experience.

What does the law say?

As is often the case, when a concept works, it attracts people. Legislators must set a framework, indicating rules and standards to follow. Spain being a federal state, the various regions have a certain autonomy in legislative matters. This implies that laws are different depending on the location. Maria and John will therefore have to consult the specific rules that will apply should they want to develop a specific offer.

Nevertheless, there are general rules, common throughout Spain, for all guesthouses. Let’s mention 3 of them.

1. The pools: The rules are generally less strict than in France for example. Legislation in terms of B&B in Spain “outsources” all liability of children on their parents. Even if access to water is free (unfenced), it will be the parents’ responsibility to constantly monitor their offspring. As a matter of fact, in Spain, the pool does not have to be monitored under a certain water volume level.

Our advice: Even if you, as the manager, are protected by law, feel free communicating this information to your guests orally … and in writing. We are never too careful! You will also have the freedom to determine the bathing hours. A floating cover will also prevent early or late at night swimming. This will enable a more convenient and efficient maintenance work. No minor thing: the swimming pool is very important place of your B&B. You must keep it, at all times, in perfect condition, whether inside (water quality and cleanliness) or outside (terrace, toilets, …).

2. The sanitary: Appointing CH’s, i.e. those who do not yet have their working licence, must, in order to obtain it, offer a private toilet per room. This is not the case for CA’s. At this level, it is basically a personal decision, regarding the quality level you want to give to your guests.

3. Cleaning: Unlike hotels, there is no legal requirement for daily maintenance for CH’s; even less for the CA’s. Again, depending on the level of luxury of your CH, it will be up to you to determine how often you do it, and what the maintenance entails.

Our advice: Even if not mandatory, go to the rooms on a daily basis. Leave “tracks” of your visits behind. An addition of toilet paper or shower gel is highly appreciated because it avoids your guests to come begging…sometimes during breakfast time, next to other clients … Your guests will feel that you care for them, in a proactive way. This is a way to build customer loyalty.

How many B&B’s are there in Spain and where are they located?

It is important to be aware that guesthouses are a real alternative to so-called “traditional” holiday homes such as hotels. Their number in Spain has steadily increased in recent years. A country map is quite telling at this level. It shows the number of B&B’s per province. The darkest is the province, the most important the guesthouses’ concentration is.

The total number of B&B’s in Spain (last March) is an estimated 16,375. They are spread unequally across the country’s 50 provinces. For example, the one region of Asturias in the north, which is geographically small, is home for more than 1,250 establishments. It is nevertheless interesting to note that the B&B offer is spread over the entire territory, and not only in hot and coastal areas. See the high concentration of guesthouses along the Pyrenees, as well as a rural area bordering Portugal (provinces of Cáceres and Salamanca).

This overall number is confirmed by consulting specialized Internet booking sites. See below. The result, purely estimated, relates to a B&B research for a 2 people 1 week stay during the month of June.

In terms of occupancy figures, we note that, as far as last March is confirmed, there were nearly 40,000 nights spent by foreigners in bed and breakfast in Spain. Almost 30% of these focus on the Balearic Autonomous Community alone. The Canaries (17%) and Andalusia (14%) follow. The average stay is the longest (4 nights) in the provinces of Santa Cruz (Canary Islands), Las Palmas (Canary Islands) and Málaga (Andalusia).

Check the site of the INE for more interesting informations on that subject.

How relevant is all this to Maria & John?

Maria and John, our couple looking to set-up a B&B in Spain (see our earlier article) realize that they are neither the first ones nor the last ones to carry out a “B&B adventure” in Spain. They nevertheless think that it might be appropriate to choose a region with a large amount of tourists … which has a low offering of B&B. In a nutshell, find an area with high demand and low supply. Based on the information below, they decide to pre-select 5 provinces:

• Las Palmas (Canary Islands)
• Almería (Andalousia)
• Valencia (Valencia)
• Menorca (Baleares Islands)
• Girona (Catalonia)

The last province of Girona is an exception: the offer is substantial but the geographical location (sea / mountains, bordering France) has aroused the curiosity of our couple. They want to investigate a little more on the topic.

Conclusion

The B&B market in Spain is quite substantial … in any case much bigger than Maria & John would have originally suspected.
As a reminder, the objective of this third theme was twofold:

• Understand what a bed and breakfast meant in Spain
• Identify potential areas of establishment

Maria and John want to offer a local service to their future guests and we saw that human contact was a key factor for them. They decide to move towards a CH … which will be located in one of the 5 pre-selected regions. They will have to investigate a little more and that is why they will go onsite.

They will provide the details of their trips to these 5 autonomous communities in the next issue of this series.

Stay tuned follow Maria & John’s B&B project!

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you for all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

The post The Spanish Bed and Breakfast market appeared first on How to buy in Spain.

First you have to set up the objectives of your B&B

After that, you will need to look at the selection criteria for your B&B. We will discuss that in the second part of this article. But first, let’s look at the objectives of your B&B.

A real project, not a choice by default

First of all, it is necessary to make a real introspection; to discover the “why” of your choice. Is it due to too much professional stress? Are you fed up with a too cold/wet climate? The fear of never seeing an old dream come true?
In the end, it is not necessarily answering that matters but rather asking yourself the question. The most important thing is that it is not a default choice, but that it results from a real positive dynamic.

Be in sync with your true self

It is fundamental to define one’s “spiritual” objectives because the “physical” configuration of the real estate will have to correspond to these objectives.

An individual introspection, then a pooling

Very often, the choice is made between the 2 partners. It may happen that the desires and expectations of the two partners do not always coincide. A dialogue must happen in the project, in order to understand and take into account the expectations of each other.

These mutual goals will be translated into “weighted criteria”. The challenge is to match these personal criteria in a common project. How do we achieve this?

Let’s check the specific case of Maria & John

Along these articles we will follow a couple in their B&B adventure. Maria, 51, is Finnish. John, 53, is Irish. They have lived in Holland for 30 years and have two children aged 26 and 24 who are both sentimentally in a relationship and are financially independent.
Maria and John want to change their life and open a guest house in Spain.

Maria wants to leave her country’s grey skies. She is a painter and sculptor, and also an excellent diver. When leaving to live in Spain, she would like not only to personally enjoy the sea, but also to organize one or another snorkeling activity with her future guests. She wants to buy a property with a rustic character with beautiful stones, large rooms and rather luxurious and beautiful gardens. She also needs space to store all her diving equipment, in addition to the Jet Ski she just bought. She also loves to cook and is looking forward to preparing delicious homemade breakfasts in a spacious and functional kitchen.

John worked in the financial sector; he is looking for a “cooler” life. He would absolutely like to improve his golf skills and realize that, for that perspective, Spain is a fantastic country. The offer of greens is indeed impressive, whether in terms of quality or quantity. He also wants to welcome travellers to his guesthouse and wants to dedicate time rather than needing to maintain a large property. Comfortable with numbers, he is concerned about the costs of the future B&B. For example, he would like to have renewable energy sources in order to minimize maintenance costs. He assumes that the building must be new to provide satisfactory energy performances.

In terms of timing, Maria & John would like to buy this property within 6 months. They plan to live in Spain and run their B&B for the next 10/15 years. They would then return to their country of origin and leave the property to their children.

How to reconcile these two visions?

How to select the perfect Bed and Breakfast in Spain?

Determine your budget

The heart of the matter, again and again. Every dream comes at a cost, and respect of the budget will serve as a major marker separating the possible from the impossible. This is the first step. You can do it yourself or call your banker, your personal advisor or your accountant.

Determine your total assets value

First of all, it is necessary to estimate the relative value of Maria and John’s global assets. This inventory will include:

• Real estate & invested cash (funds, stocks,…)
• Savings books, pension savings
• Life Insurance and group insurance
• Physical assets (paintings, cars, …)
• Deductions: outstanding balance and other debts

Concretely, let’s have a look at the assets of Maria and John

The couple’s global net assets amount to an estimated 800,000 €.

If we take into account that, ideally, the real estate assets can not exceed 90% of the global belongings, the limit for Maria & John is therefore fixed at 720,000 €. By deducting the existing real estate (300,000 €), we arrive at a total of 420,000 €. Taking into account global Spanish acquisition costs of 15% (registration, notary, small development costs), we come to 365,217 €. This amount represents the maximum amount (excluding fees) available.
This is the amount that Maria & John will have to take into account when they check the real estate offers.

The overall amount (420,000 €) could be self-financed mainly from own funds (the available cash amounts to 380,000 €). It could also be linked to a mortgage credit, classic or bullet type. This could be a very tax-efficient process. One thing is certain. The more important the self-financing part is, the more attractive client for a bank you will become, and therefore the better your borrowing conditions will be.

Your borrowing capacity will also depend on your income, of course. As explained in our first theme, you should ideally benefit from other financial resources, apart from those generated by the B&B. Count on the fact that one-third of your net income can be used to pay off the credit.

For more on that, read our paper: Your definitive guide to your Spanish Mortgage: How to apply? How to get the best rates? It was written as a help guide for financing your second home but could be useful to check financing conditions for your B&B in Spain.

Now that the budget is set, Maria and John can move forward.

How to reconcile everyone’s expectations?

Our tip: Ranking all the criteria for each potential property in a worksheet

The idea is simple: to create a weighted matrix containing the physical characteristics (pragmatic, rational) of the house, we will call them the Criteria and by giving each of them importance (personal, irrational).

The confrontation of intangible dimensions with “mathematical” values will grant a rating to each estate.

Listing them in a table will help in comparing the different properties visited by giving each of them a global score.

The CRITERIA are rational and apart from personal feelings. They are formed beforehand by Maria and John in the form of an exhaustive list of each of their personal criteria.

The other dimensions give a score to these criteria. They are irrational, namely:

• The WEIGHTS – ranging from 1 to 5 (best) – indicate the importance of the criteria for the person. They are specified on the worksheet before visiting the property.
• The RATINGS – ranging from 1 to 10 (best) – will be completed after the visit to the property and indicate the level achieved by the property for this criteria.

By multiplying WEIGHTS and RATINGS, each CRITERIA will get a personal score. By adding all these values, we will apply an overall score to the property.

To sum up, here is the step-by-step guide to your ideal B and B:

1. List the CRITERIA of the ideal property
2. Give a WEIGHT for each criterion
3. Visit the potential properties and give them RATINGS
4. Compare the ratings between the partners if you have a partner and between the different properties

This process will help you to rationalise the process and remove some of the emotions involved. This is important as you should consider your project as a future business.

Let’s analyse the first Bed and Breakfast on the list of Maria and John

The first potential Bed and Breakfast located by Maria and John is in Calpe, Costa Blanca, Valencian Community. They have visited this beautiful little house on a plot of 3,200 square feet acres in an urbanized subdivision. Recently built and close to the beach, it has 6 bedrooms in 2 separate aisles: 2 on one side (private area for Maria & John) and 4 on the other side. These last ones will be used for the B&B guests.
Besides, there is a garage, a swimming pool and solar panels.
The price is OK: 295,000€.

The selection criteria matrix of this bed and breakfast in Calpe.

We notice that John gave a better rating for this house in Calpe than Maria, despite the proximity of the sea, dear to Maria.
This result is interesting. It will be a real starting point when Maria and John will compare different estates with similar matrices. Let us point out that the more potential estates and visits, the more this analysis, and ultimately the choice of property, will be fruitful.
We will come back in a future article on the actual search for the estate.

Coming soon: Theme 4: Looking for the right estate & Negotiation skills

Two things to keep in mind

Administrative and legal checks will also be essential. A property may look attractive at first glance, but is it really so? A check of the legal papers, regulations, licenses granted will be absolutely essential. We come back to this later on.

Conclusion

We have:

• verified that Maria & John are meant to run a B&B: What are their true objective in opening a bed and breakfast?
• defined their objectives, budget and property selection criteria

Our second theme is now completed. We will continue our analysis in a future article by finding out what the current Spanish B&B market looks like in Spain. This will help Maria and John determine in which Spanish region they want to go.

See you very soon.

Patrick

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set-up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

The post How to select the perfect house to start your Bed and Breakfast in Spain? appeared first on How to buy in Spain.

Is the B&B Manager life in Spain made for you?

At the beginning of the project, it is necessary to be able to put yourself in a position where you can see if the life of a B&B manager is made for you. It is clear that your situation, environment and general context will be specific to you. Nevertheless, we can identify some key elements that are common to all B&Bs.
We will talk about prerequisites with which you must be in harmony. Let’s see this in more detail.

The 3 “musts” for the B&B manager life:

The first important aspect is to realize that managing a guest house is a real job. It is not a holiday or cushy work. Even by limiting the services offered and the size of the property to maintain, this is a real job, with its positive aspects and less rosy or glamorous sides. This must be clear for anyone who wants to embark on this great adventure.

Only by practising the business of managing B&B, you will judge appropriately the profession. Nevertheless, 3 prerequisites are absolutely essential.

1. The 1st objective must not be financial!

It is obvious that catering is not the sector where the margins are the most important. It must be very clear to you.

The margins are usually quite low in fact.

It is only by generating a lot of volumes that you will get a substantial income. Having said this, it will be necessary to agree on the workload and maybe consider outsourcing some activities.
The questions you need to answer are the following:

• Will you share the workload with external partners?
• Will you do everything on your own?
• How about homemade dishes for the meals?
• Who will clean the rooms?
• Will you wash the sheets yourself…and iron them?
• Will you take care of the whole property (grass, trees, plants,…)?

Any activity that you won’t do yourself, will mean, less work on your shoulder,… but higher fixed and variable costs to run your business.

For any external partner, ask yourself: at what price? Investigating this topic leads you to a fundamental choice.

More time, less money… or reverse?

Would you be ready to earn a little less in order to improve your life quality? What’s the most important for you…and your partner? Do you both agree on this?
Having said that, even if the goal is not financial, you will need to set up a financial plan.

Financial Plan

The Financial dimension which guides you must be twofold:
* buying a property at a fair price and relying on a recurrent property gain throughout the years

* Make sure that during the running time of the B&B, the revenues cover all your costs: fixed costs (mortgage repayment, if applicable), but also variable costs, such as heating, electricity, food & travel expenses

Important to have other income sources

Ideally, incomes from the B&B should be considered as additional revenue. It is important to have other sources of income. The ability to work part-time elsewhere, and/or rental yields from other property rented would be a real source of comfort.

Our concrete advice: “a co-management by two persons having distinctive time and financial dedications”.

Read more on the financial planning of your B&B in Spain in our detailed article.

This is the winning formula

• one of the two people manages the B&B on a daily basis by dedicating himself/herself entirely to it,
• the other one dedicates time to it in a variable and adaptive way according to the activity. He/She will pursue a professional activity of its own, generating income in a secure and recurring manner.

This methodology is effective, especially in the context of seasonal work, as is the case of a B&B. Unless you go to the Canary Islands and enjoy a constant climate throughout the 12 months of the year, you will have to adapt to the climate, the seasons and therefore the occupancy rate. Check our monthly weather statistics on any Spanish City.

This management type will make it possible to have two visions and (distinct but complementary) approaches while minimizing the financial risks. Following this philosophy will allow you to manage your B&B without having a Damocles financial sword over your head.

This will improve the service quality you offer to your guests. It will be one of the major pillars of B&B’s customer loyalty and a prerequisite for capturing prospects.

2. You love social contact!

Social and human meetings are key to the activity of a B&B manager. This is where the real wealth is. Human contact, therefore, is a dimension that you will need to master.

Put yourself in the place of your future hosts. Choosing an un-renowned B&B may be risky. Still, they decide to come and spend the holidays at your place rather than in a beautiful hotel. Why? This has probably to do with a fundamental aspect: social contact and the expectation of “something different”.

This means that one way or another, they will want to spend time with you. Many will be curious to know the “why&how” of your project. Smiling, you will repeat for the umpteenth time the same story. Your hosts will be eager to find out about the good place hardly visible on a map or the fantastic little restaurant still not listed on tourist guides.
It will be up to you to give them this information. It will convince them that they made the right choice of holiday.
In a nutshell, you will face continued high demand. It will therefore be important that, when you want to recover your family intimacy, you can will able do so. This a key element when it comes to choosing the appropriate B&B configuration.

Theme 2: How to select the perfect bed and breakfast in Spain?

Keep a private area?

Some guest houses have physical separations between private and public areas. “Friendships” with guests may appear. The temptation will sometimes be strong to open the doors of its private side.

Our advice: keep a private part, exclusive for you, when your relatives will visit.

What is certain is that, by managing a B&B, you will travel while staying at home. People from all over the world will come to visit you. You will spread your contact network with great people of different cultures and environments. It’s just fantastic!

3. Understanding the life of a B&B Manager: the Time Test

The guesthouse or “casa rural” means the delivery of 2 main services offered by the manager: the bed (with bathroom, private or not) and the breakfast. This is contrary to the concept of a rented vocational house where the keys of a building are given on the arrival date, and taken back on the departure date, with no service provided in between. In this case, the customers are completely independent.

Read more: Theme 3: The existing B&B offer in Spain

The services offered in a B&B, therefore, include regular visits to the rooms but also and especially the organization of breakfasts.

Practical example: the breakfast “work” with its time implications

A breakfast (worthy of the name) must be ready at 8 am. It will necessarily involve a preparation from 7 am (food + room) and finish around noon. Taking into consideration the chatting, the bringing of additional food, and then the cleaning& storing, as well as the next day’s preparations of homemade dishes, count a half-day for the “Breakfast” task.

Evening meal?

Now, the guests are usually also very fond of evening meals. You may want to give your personal touch applied to fresh and local products. This is a great idea your guests will appreciate a lot but you need to realize that, as a consequence, your schedules will “undergo” additional extensions.

How long is the high season?

Furthermore, you may have guests the next day who required an early breakfast. In the case of evening meals and early risers the next day you will have 5 hours of sleep at most. This may happen 7 days a week, and last during the whole high season. Whatever the Spanish region, a high season means at least 2 months. You will lose track of time. Is it Sunday or Tuesday?…
While you believe you can count on quiet moments, you will still be annoyed sometimes. It will also happen during your meal, or while you sleep. No great deal but you need to be aware of all this. Unavoidable events will mark your route as B&B manager…as it is in the case of any “normal” job.

Generally speaking, the more your time and dedication will be important, the more it will be valued, and respected by your customers. There will be a form of “give & take”, where your hosts, aware of the work you do, will also help you with minor tasks. Here is a practical example.

A customer will always want to clean up his/her table if the meal meets have met expectations. A form of “B & B culture” can appear where customers copy others. After everyone is done eating in the morning, you will arrive at the breakfast place, ready to take away food and insert dirty plates in the dishwasher. Suddenly you realize that everything is already in the dishwasher; part of the job was done by your guests! You will see that it is a very pleasant feeling…

And the management of your B&B?

The services of the B&B are not limited to meals and room cleaning. It will also be necessary to carry out management tasks, such as booking requests, legal requirements (invoices, tax declarations), marketing projects (advertising, promotional offers, partnerships with local companies…), as well as the maintenance of the interior and exterior spaces of your property. There will be no time to get bored!

Forget the 9 to 5 schedule

You understood: the concept of the “9 to 5” schedule is just totally incompatible with the function.

In conclusion, we can say that, if you benefit from some financial flexibility, like social contact and that you are ready not to count your working hours, then managing a guest house is made for you!

Our first theme is now completed. We will continue our analysis in a future article. by defining the objectives & criteria selection of your future Spanish property.

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set-up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. In the end, you will have all the keys to open the door of your dreams.

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

Patrick

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!

Check the full team of HTBIS here

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