The Federal Law № 59-FL as of 15.04.2019, that made amendments to the Article 17 of the Housing Code of the RF, has come into force since October 1, 2019.
Therefore, according to the amendments, activities of hostels on providing hotel services in residential houses are forbidden. Prohibition does not concern hostels located in non-residential buildings and on the first floors with private entrance.
Further provision of services by hostels will be possible only if the following obligatory conditions are met:
- soundproofing of apartments;
- rooms equipped with fire protection and security alarm systems;
- rooms equipped with safes for holding documents and valuable objects;
- rooms equipped with cleaning and sanitary disposal tools.
Besides, it is not forbidden to place hostels in the apartment complexes that are not residential.
According to the Housing Code of the RF, an owner is assigned with the right to use residential premise for professional and business activities on an individual basis. However, these activities should not violate rights and legitimate interests of other citizens, fire safety requirements, ecological, sanitary and epidemiology standards. Now the Housing Code of the RF directly prohibits using residential premises for industrial production, missionary activities and hotel services.
For information According to the data from the Information and Analytical system Globas currently in Russia there are more than 33 thousand enterprises, providing part-time residence services. Full Information is available for the subscribers of the Globas system.
Information agency Credinform represents the ranking of the largest Russian hostels. Hostels – legal entities with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2016 - 2018). Then they were ranked by the return on equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.
This indicator is used by investors and company’s owners to measure their own investment. The higher the ratio value, the more profitable the investment. By the return on equity with a negative or zero value it is necessary to analyze the advisability and efficiency of investment in the enterprise in the future. In such cases, the ratio value should be compared with other investment.
Too high value of the indicator, in its turn, can negatively affect the financial stability of a company. High profitability implies also higher risks.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s financial indicators and ratios.
|Name, INN, region||Sales revenue, mln RUB||Net profit (loss), mln RUB||Return on equity, %||Solvency index Globas|
|DRUZYA-OTELI I KHOSTELY LLC
|OKEI KHOSTELGRUPP LLC
|SET UYUTNYKH KVARTIR,OBSHCHEZHITII I KHOSTELOV UYUT LLC
|PLANETA KHOSTEL LLC
is in the process of reorganization in the form of transformation, since 09.06.2017
|SET KHOSTELOV ZAKHODI LLC
|SWEET VILLADGE HOSTEL LLC
|Total by TOP-10 companies||319,34||350,08||9,88||6,31|
|Average value by TOP-10 companies||31,93||35,01||0,99||0,63||35,52||106,83|
|Industry average value||33,17||38,79||-12,74||-4,65||3 388,74||1 229,76|
improvement of the indicator to the previous period, decline in the indicator to the previous period.
The average value of the return on equity ratio of TOP-10 companies in 2018 is significantly lower than the average value for the hotel services industry. Two companies improved results in 2018.
Over 10 years, the average values of the return on equity ratio in the hotel services industry have a tendency to increase. (Picture 2).