Taiwan market for cheap lodging, dormitory style

How would the market for dormitory style lodging be? It would be as a secondary business to set-off rent for the property. How about licensing in Taipei? Would it be a good idea and a possibility? It’s in an area frequented by tourists.

Hoping for some input.

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Possible and many hostels are doing very well with the boom in tourism from within the Asian region. However, there is currently no practical way for most hostels to be licensed unless they are associated with a larger hotel (regulations state that a hotel must have parking which is obviously impossible for most hostels). There may be ways to get around it though.

Such as?

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Look at airbnb aswell.

It’s the parking requirement regulation that makes most hostels technically illegal, and as such they operate under the radar. I know of two hotels on my block alone (where I work), but they keep a very low profile.

Fire regulations

There are places like that already, so yes, there are chances of getting a business like that making money.

Low profile? How does that work in lodging?

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Such as?

Responses to dumb posts were sent from my Nexus 7, I hate Apple BTW, with Tapatalk 8[/quote]

You can be connected to a hotel, operate illegally (maintain good relations with the local police as they usually support hostels), get a parking lot, pay the huge fine for not having a parking lot, or wait till the regulations change as they may soon.

I know some people running a very good hostel in the city who would probably be willing to talk to you if you like.

Low profile? How does that work in lodging?

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They’re on Expedia.

No, really.

Low profile? How does that work in lodging?[/quote]
That should be “hostels”, not “hotels” in my comment above.

They don’t put signs out front, and the owners aren’t keen about being listed in guidebooks. But they get their business through online booking, as well as word-of-mouth referrals.

Low profile? How does that work in lodging?

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They’re on Expedia.

No, really.[/quote]

In the words, completely invisible to the government of Taiwan which has still barely acknowledged email.

There was an article today in the paper about the many complaints other residents in building have about illegal hostels, the fines, the intent of the City to crack down etc. It was clear that there are many such businesses and I believe a few foreigners have done this. To me this seems a bit like the many eateries near Shida that were closed down. People do it but there is a risk that one day the powers that be will start enforcing the strict regulations and your investment will go down the drain without there being much you can do about it. There are a lot of new legal hotels in Taipei. They will probably start exercising their influence to put illegal competitors out of business. If you can figure out a cheap way to do it, it might work, but the ones I have seen have a lot amenities so it might be tough to compete against them.

Feiren talking a lot of sense here. It’ll be alright until it’s not alright (fire/death/rape/neighbourhood movement) and then they will be shut down. The thing is it won’t be a big loss because you just convert them back to apartments.

It’s also true that the newer hotels are offering cheaper prices but better service and breakfast etc. Maybe not as cheap but it’s getting close. It’s all good for travelers.

[quote=“headhonchoII”]Feiren talking a lot of sense here. It’ll be alright until it’s not alright (fire/death/rape/neighbourhood movement) and then they will be shut down. The thing is it won’t be a big loss because you just convert them back to apartments.

It’s also true that the newer hotels are offering cheaper prices but better service and breakfast etc. Maybe not as cheap but it’s getting close. It’s all good for travelers.[/quote]
Well, except for the one who died last year in a private hotel from carbon monoxide poisoning. Ventilation not to code.