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How to Start a Small Hotel Business in India: Business Plan, License, Permits, Setup Cost, Profit, and Requirements

Table of contents, investment needed to start a small hotel business in india, license/permits required for starting a small hotel business in india, requirements for starting a small hotel business in india, small hotel business plan – how do i write a business plan for a small hotel, how to start a small hotel business step-by-step , how to start a small hotel business with no money in india, small hotel business franchise in india, how to run a successful hotel business in india, profit margin in the small hotel business in india, taxes/gst in the small hotel business in india, challenges/risks involved in the small hotel business in india.

There is a growing demand for small hotels in India. These are usually family-owned businesses that offer simple, affordable accommodation. There are several reasons for this trend. First, the country’s population is growing rapidly, and there is increasing demand for affordable hotel accommodations. Second, hotel prices have increased dramatically recently, making small hotels attractive. Finally, many Indian people are now traveling and want to experience the local hospitality scene.

Small hotels can be a great way to start your own business. They don’t require a large initial investment and offer much flexibility. You can run your hotel as a sole proprietorship or as part of a franchise network. The main downside of small hotels is that they can be difficult to notice. You must ensure you target the right market segment and deliver the right product at the right price. This blog post will explain the requirements, investment, and profit margin of a small hotel business in India.

How to start a small hotel business in India

Are you questioning the cost of opening a small hotel in India? Starting a small hotel business in India can be cost-effective, but it will require some investment. Here are the costs and what you’ll need to start up: To get started, you’ll need to purchase or lease a property. A small hotel typically costs between Rs 50 lakh and Rs 1 crore, although the price will vary depending on the location and size of the hotel.

You’ll also need enough money to cover initial operating expenses, such as marketing and occupancy taxes. In terms of staffing, you’ll need at least two full-time employees, including a general manager and a head of housekeeping. Additional staff may be necessary for tourism seasons, such as Christmas or Easter.

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The average wage for a general manager in a small hotel is Rs 25,000 per month, while the head of the housekeeping salary is Rs 20,000. In addition, you will need to make sure that your property meets certain standards. In India, hotels must have at least 16 rooms and be 100 square feet (9 square meters). You’ll also need to install air conditioning and electrical wiring, provide safe drinking water supplies, and maintain a clean property.

Starting a small hotel business in India can be a great way to make some money and gain some experience in the industry. However, before starting any such business, it is important to be aware of the necessary licenses and permits that need to be obtained. The following are some licenses and permits typically required to start a small hotel business in India:

Hotel Management License : This license is required if you plan on running a hotel with more than 10 rooms.
Food Safety Certificate : This certificate is required if you plan to serve guests food.
Building Permit : This permit is necessary if you want to build or remodel a hotel structure.
Fire safety certificate
GST number . Check with your local municipal office for required permits.
Location : Ideally, a small hotel business should be in a metropolitan area. However, if the business is located in a rural area, it should still have good access to major transportation hubs.
Possible Sources of Revenue : The most common sources of revenue for small hotel businesses in India are room rates, direct marketing, and catering services.
Staffing : A small hotel business in India typically needs between two and five full-time employees.
Operating Costs : The operating costs for a small hotel business in India are typically lower than for a larger hotel business. For example, the cost of property and equipment may be lower, as well as the cost of labor.

To write a hotel business plan for a small hotel, you first need to understand the different components of a business plan. A business plan should include the following;

Business Overview
Market analysis
Product/service differentiation
Competitive landscape
Financial analysis
Management plan

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Once you have a good understanding of the components of a business plan, you can start writing your own. Here are some tips to help you get started:

Start with an overview of your business . What is your company’s mission? What makes your hotel unique? How will guests find and visit your property? Then, write down everything you know about your company and how it will benefit customers.
Make a market analysis . What are the current trends in the hospitality industry? What are the key challenges facing small hotels today? By understanding the challenges and opportunities in your market, you’ll be able to create a unique selling proposition (USP) that will attract guests.
Differentiate yourself from competitors . How will your guests perceive the value of staying at your hotel compared to other options? Are there any new trends in travel that you can capitalize on? Think creatively about improving your current services and making your hotel stand out from the competition.
Know thy costs . What is necessary to maintain and run your hotel successfully? What are the most important expenses associated with running a small hotel, and what can you do to reduce them?

Starting a small hotel business can be a great way to make extra money and have your own business. Here are step-by-step instructions on how to get started:

Choose a location – One of the first things you need to do is decide on a location for your business. You can either start with an existing hotel or find a new location to lease or purchase.
Get the necessary permits – Once you’ve chosen a location, you’ll need to get the necessary permits from local authorities. This includes zoning approval, building permits, and fire code certification.
Market your business – Once you have all the permits, it’s time to start marketing your small hotel business. First, you’ll need to create a brochure, website, and marketing plan targeting potential customers.
Get started – Once you’ve finalized your plans, it’s time to start building your small hotel business.

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One way is to find an existing hotel and purchase it.
Another option is to find a franchise opportunity. You can also find an individual investing partner or apply for a small business loan from any bank.
And finally, you can start a hotel from scratch using private funding. Whichever route you choose, be prepared for long hours and hard work. But with careful planning and some luck, starting a small hotel can be an enjoyable and lucrative experience.

If you want to get into the hotel business, franchising might be the right option. Franchising offers several benefits, such as stability and predictability in your business. Plus, it can give you access to a large pool of potential customers. However, to start franchising, you’ll need to assess your skills and qualifications.

First, ensure you have the experience and knowledge to run a successful small hotel business. Next, create a strong business plan and marketing strategy. Finally, find a reputable franchise company to help you set up and manage your business. If you’re ready to get started with franchising, be sure to research different options available in India. Many reputable franchise companies can help you get started.

Running a successful hotel business in India can be a very rewarding experience, provided you do your research and put in the hard work. Here are five tips to help you get started:

Get licensed and insured; first and foremost, you’ll need to obtain a license from the government and your state’s licensing authority. Ensure your property is properly insured for fire and liability purposes.
Set your prices right while it’s important to be competitive, setting prices too high can drive away customers. Be sure to factor in taxes and other necessary fees into your pricing structure.
Build an awesome team in India that prides itself on its teams of competent staff members who can provide top-notch service to its guests. Hire people who share your vision and are committed to making your business successful.
Invest in Property and Equipment To run a successful hotel business in India, you’ll need to make significant investments. Purchase an up-to-date property that meets the standards set by local authorities, and invest in the latest equipment and technology to improve efficiency and guest service.

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In a small hotel business in India, the profit margin can be quite high due to the low labor cost. However, several expenses also need to be considered, such as rental costs for the premises, electricity and water bills, and depreciation on fixtures and equipment. Therefore, to maximize profits, it is important to carefully plan and budget for these costs and find ways to reduce operating costs.

In India, taxes/GST applies to all business activities, including those in the hospitality sector. The GST is a nationwide tax levied at the rate of 18%. All hotel establishments with an annual occupancy of more than five rooms are considered small businesses and, therefore, subject to GST regulations. The GST registration process for hotels is straightforward and requires only a registration form and a total annual taxable income declaration.

There is no need to submit any other documentation. However, once registered, the hotel establishment must pay quarterly taxes on its total taxable income. Therefore, it is important to keep accurate records of all transactions within the hotel premises to calculate the taxable income. Hoteliers should also be aware of other tax implications from their business operations. Your charted accountant (CA) is the right source for taking care of income tax filings, GST filings, and other trade-related filings.

In India, the small hotel business is growing quickly. There are many challenges and risks involved in operating a small hotel in this market, but with the right strategy and planning, these businesses can be successful. One of the main challenges facing small hotels in India is competition from larger chains.

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Many of the larger chains have invested heavily in the Indian market, and they are now well-established businesses with strong networks and economies of scale. These chains can often afford better prices and more convenient amenities than smaller hotels, making it difficult for small hotels to compete. Another challenge facing small hotels in India is finding suitable locations. Many of the best locations are already occupied by large chains or other types of businesses, and it can be difficult to find a location that is both profitable and accessible.

Starting a small hotel business in India can be a rewarding experience if you have the right attitude and the necessary skills. The key to success is to be organized, efficient, and patient. There are many potential pitfalls, but with careful planning and execution, starting a small hotel business can be rewarding. We wish you good luck in your small hotel business in India.

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How To Start A Hotel Business In India | A Step-by-Step Guide.

Hotel business makes a lucrative business option in India due to the increased tourists’ inflows. Every year there are millions of tourists coming to the country from the different parts of the world to explore the diversities of our nation and visit various historical monuments, tourist attractions, etc.

Therefore starting your own hotel business in India is one of the most trending and profitable businesses in India. It requires investing a lot in the beginning but once you get your business running, it could reach great financial heights.

There are a number of things that need to be considered and followed before starting your own hotel business. As easy as it sounds, it includes dealing with a wide array of things that could contribute to making your business successful .

A well-informed business planning is an important step for any business plan. Having a basic understanding of the business that you are planning on getting into always gives you a head start. Here is some guidance that you could use while planning your hotel business.

Deciding the type of your Hotel

There are various types of hotels from which you will have to choose before the establishment of your hotel. Hotels come in various categories, big and small, with or without a restaurant, basic and luxurious, etc.

As soon as you decide the type of hotel you will need to make the arrangements as per the need. For example, if you are planning on opening a big hotel with a restaurant then you will need a larger area as well as various amenities for a restaurant like catering services , sitting arrangements, etc. and hire people accordingly.

Finding The Right Location for your Hotel

The ideal location for your hotel would be the one that welcomes a huge crowd of tourists every year. The more will the potential customers, the more are the chances to keep your business running. Cities like Mumbai, Agra, Kerela, Shimla, Bangalore, hill stations, etc. are the ones that serve as a tourist hub.

Setting up your hotel in these locations will earn you a great deal of profit. These cities do not only attract tourists from within the country but also from different parts of the world.

After deciding on the city, you will have to find the area in the city where most visitors will prefer staying. Tourists always prefer the center of the city from where all the places that they are going to visit are near. Also, hotels near train stations, airports, bus stations always make a good location for the business.

By making your hotel available in the main parts of the city will attract a large number of people that will give you huge revenue.

Finding The Right Location for your Hotel

Deciding on Hotel Area

Depending on the size of your hotel and the number of rooms that you will have in your hotel, you will have to determine the area of your hotel business. A hotel with 80 to 100 rooms which is considered as midsized requires the approximate area of 10000 to 50000 square feet.

This is a rough approximation, you will have to plan accordingly. Apart from the number of rooms, another aspect that will affect the area is various facilities like swimming pool, garden area, catering area, sitting area, reception hall, etc.

The Layout of your Hotel

Layout basically means the blueprint of your hotel. You can seek professional help in this process like architectures and interior designers . Architectures will help in planning and designing of your hotel area. This area deals with the exterior construction of your hotel building.

On the other hand, hiring an interior designer will help you make your place much attractive. Before getting experienced with the quality of your service, the initial impressive factor of the hotel business is its look. And the more attractive it looks, the more customers it is going to attract.

Just hire the professionals within your budget with personal references or from the internet. Before hiring an agency, always google them to look for the reviews.

Investment Source

Investing in a big business plan like a hotel sometimes requires financial assistance. In this case, you have three options, first is to look for potential investors, second is applying for a loan to a bank, and third is involving your friends and family that are interested in being a partner in your business plan.

There are various private investors that are looking for investing in a business plan that they think has the ability to be a financial success. Making them invest in your business is possible if you remain successful in convincing them that your hotel plan will be a hit. Here are some online websites that will help you find private investors for your business- Angel Investment Networks , Nexus Venture Partners ,

You can also take help from the various crowdfunding sites in India like Wishberry , Fundlined , Indiegogo , etc.

The second method is applying for a business loan in the bank. There are various private and national banks that avail the business loans. In India, normally the bank provides 70% of the loan amount required for your business, the rest 30% you will have to arrange by yourself. You can apply for a loan at SBI , Bank Of Baroda , Axis Bank , ICICI , and HDFC Banks.

Opening a hotel business sometimes requires partners that will assist you financially and personally. Having your friends and family to invest in your business plan is another way of finding financial assistance.

Investigating Your Competition

Competitor Analysis is a crucial part of starting any business. Your business competitions will be every hotel within the 10 kilometers radius of your hotel. In order to compete with them, you will have to do proper research of what are the facilities that they are providing, what are their prices, how is the quality of their services, etc.

After knowing everything about your competition, you will be more clear about everything and it will help you customize your hotel and its services accordingly.

You can also follow the standard rules of various famous hotel chains in India such as Oyo , Radisson , Royal Orchid , etc.

Getting Permits and Licenses

Different countries have a different set of regulations for running a hotel business. In India, you are required to get the following permits and licenses from the concerned authority that is mandatory for opening a hotel business.

Land Permit – You will have to take the permit from the government that the land you have bought or rented is for commercial use. The permission is provided by the local municipal authority. You can find the municipal corporation link of your city here .
Health/Trade License – In order to get this license you will need to contact the Local Civil Authority. You can also register online by clicking here .
Food Safety License- This license can be obtained by the Food Safety and Standard Authority of India shortly known as FSSAI .
Eating House License- You can obtain this license from the Licensing Police Commissioner of the city in which you are establishing your business. You can also apply for the certificate online by clicking this link .
Liquor License- This license is only required if you are planning on availing the bar and liquor facility at your hotel. For this license, you will need to contact the local Excise Commissioner of the city or register online by visiting this government website .
Fire Department License- For this license, you will need to contact the fire department of the area of your hotel. You can search for your state license department here .
Pollution License- This license is required if you are planning on conducting various events in your hotel. You can obtain this license from the Pollution Control Board of your city. Or you can also visit the Central Pollution Board of India website.

Apart from this, you will also have to contact the Indian Tourism Board for the rating of your hotel.

Hiring the Staff

Recruitments of the staff are done depending upon the need. Hotel businesses require hiring a great deal of staff for various purposes. For example, you will need staff for the following areas.

Front office staff- These employees will greet the customers, assign them rooms, and keep an account of their payment.
Housekeeping Staff- For the cleaning of your hotel and rooms and for carrying the luggage of your customers.
Managers- The manager is the one who is responsible for handling everything at the hotel. Hotels have managers for different areas like line managers handle employees, marketing managers handle marketing strategies , etc.
Supervisor- Supervisor is the one who looks after everything happening at the hotel and checks for fault.
Waiters- Waiters are for bringing the food to your room if you order room service, or if you have a restaurant, then for waiting at your table.
Cook- Chefs and cooks are required if your hotel also has a catering service, etc.

There are various online platforms that will help you in the hiring process. You contact various third party websites like LinkedIn , Glassdoor , Shine , etc. These websites work as a connecting link between the employees and the company.

Transport Facilities

Most people will book your hotel online with the intent to minimize hassles on the day of their arrival. So they will look for the hotel that will help them do so. The availability of transport facilities by any hotel is always a plus point that attracts the customers.

The facility of picking the customers upon their arrival from the train station or airport and dropping them at the time of departure is the one that most of the visitors seek in their hotel.

Marketing of your Hotel Business

Like any other business plan, the hotel business also requires the implementation of the right marketing strategies. You can opt for the following ways to reach more and more customers.

Creating a website – Website will help you build credibility for your hotel as well as it will help you reach more customers. WordPress provides you a great platform for creating a website in a small budget.
Social Media – Facebook , Instagram , and other social media platforms serve as the best platforms for social media marketing.
Google My Business – Nowadays no one books a room online without reading the reviews online. So make sure you have your business listed on Google My Business that will help the customers rate and review the hotel services.
Inauguration Ceremony – Organizing a big event to spread out the word about your hotel business is also a traditional marketing strategy.
Leaflets – Leaflets and pamphlets are the old fashioned marketing strategies that are equally effective in today’s world.

Any business plan can be successful if followed by dedication and the right guidance. With the increasing amount of hotel businesses, the competition has only grown higher. Therefore it is necessary to provide your customers with quality services that will give them a reason to come back again and again.

Tourists visit different cities in order to enjoy various famous places and tourist attractions in the area but having a good experience at a hotel can make their trip even more memorable. These step by step guide to planning your business will help you make your hotel more customer-friendly and generate huge revenue.

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A Complete Guide to Starting a Hotel Business in India

Over the past ten years, the tour and travel industry has experienced significant growth. The hotel industry has seen a huge expansion in the tourism market as more people travel for leisure and business, not just domestically but also internationally.

The Hotel business in India is one of the most profitable and ideal business ventures in India. Because of the top attractions and diverse cultures of India, international travel is growing steadily. Therefore, starting a hotel business might be a lucrative venture.

What is the Hotel Business in India?

In India, the hotel business is a foundation that provides meals, lodging, and other guest services. In India, an establishment must have a minimum of six guest rooms, at least three of which almost certainly have to connect private bathrooms. Although hotels are categorised into “Star” categories (1-Star to 5-Star), there is no set method for assigning these ratings, and consistency with basic requirements is intentional.

There are some crucial things you should take into consideration if you want to start a hotel business in India. You will learn about the crucial information to launch a hotel business in India in this article.

How to Establish a Hotel Business in India?

1. select a name for your hotel .

Choosing a name for your hotel is the first step in launching a successful hotel venture. Because your hotel’s name will serve as your brand and be in use forever, this decision is crucial. Ideally, you choose a name that will stick in people's minds. Following are some suggestions for naming your hotel business:

Check to see whether the name is available. Search trademark databases and the list of legally registered business names in your state to see if a name is already available. Check the availability of a decent domain name as well.
Ensure simplicity. The best names are typically those that are easy to spell, pronounce, and remember.
Consider marketing. Create a name for your hotel that expresses the desired identity and/or purpose of your establishment.

2. Create a business plan for your hotel

Making a thorough business plan is one of the most crucial tasks in starting a hotel business. You can be confident that you fully comprehend your market and business strategy because of the process of building your hotel business plan. You can use the plan as a guide as you proceed and, if necessary, show it to potential investors for your company.

The business plan you create for your business must include the following sections:

Executive Summary: This part should include a summary of your entire business strategy so that readers may immediately understand the most important information about your hotel.
Company Overview: The reader is informed about the background of your hotel and the kind of lodging you offer in this area. For instance, are you a boutique hotel or an inn?
Business Analysis: Here, you will record important data about the hotel business. Conduct market research to determine the size of the sector and the trends that are affecting it.
Analyse your target customers: You will include the features of your ideal or target clients in this section. For instance, what is their income level? What services do people expect from a hotel? What factors do they consider crucial when selecting a place to stay?
Competitive Analysis: Here, you will list the main direct and indirect rivals you will confront and describe your strategy for gaining a competitive edge.
Marketing Plan: Your marketing plan for the hotel should identify four Ps —Product, Price, Promotion, and Place.
Operational Plan: Here, you will identify the crucial procedures you will require to manage your daily business. You need to determine your staff requirements. The expected growth timeline you develop in this part of your strategy will highlight the milestone you hope to achieve in the next years.
Team Management: This section consists of the details about the team management of your hotel.
Financial Planning: Finally, financial planning consists of the answers to the following questions:
What is the expenditure of starting a hotel business?
How will your hotel business make a profit?
What are the expected sales and express for the coming five years?
Do you need to arrange funds for starting a business?

3. Select the legal structure of your hotel

The next step is to decide on the type of legal structure for your hotel and register it along with your business name with the secretary of state in each state where you can conduct business. Here are the top 5 legal structures:

Sole Proprietorship
Partnerships
Limited Liability Company

4. Arrange to fund your hotel

You may have decided that you need to raise money to start your hotel business when creating your business plan. Your choice of whether to purchase and renovate an existing property or build a new one will have a significant impact on when you may open your new hotel and the amount of funding you'll require.

5. Find a place to start building

Appropriate space is crucial for any hotel, and picking the ideal location can have a significant impact on your bottom line. Think about these factors to find the perfect area

Number of rooms your hotel will have.
What are the zoning requirements for hotels in your area?
Is the local market a good match for your target customers?

Working with architects to set up a schedule and calculate expenditures is also necessary if you want to develop a new building for your hotel.

6. Register your hotel with IRS

The Internal Revenue Service (IRS) will issue you an Employer Identification Number (EIN) if you register your company with them (EIN).

You will often need an EIN in order to open an account with a bank. Additionally, since the IRS uses your EIN to track your payroll tax payments, you will need one in order to hire employees.

Note that you typically do not need to obtain an EIN if you are a single entrepreneur without workers. Instead, you would keep your social security number as your taxpayer identification number (instead of your EIN).

7. Open a bank account for your business

It's crucial to open a bank account in the name of your hotel. The stages involved in this straightforward technique are as follows.

Find and get in touch with the bank you want to utilise.
Obtain and provide the necessary paperwork, which typically consists of the articles of incorporation for your business, a driver's licence or passport, and a proof of address.
Fill out the bank's application form completely and include all necessary details.
To discuss your company's needs and build a connection with a banker, arrange a meeting.

8. Get Insurance for your hotel

To secure your brand-new hotel, you must have the appropriate business insurance. You should take into account the following business insurance coverage for your hotel:

General Liability Insurance: This insurance protects your hotel operation from third-party claims of physical harm, property loss, and personal injury arising on your property or as a result of your operations.

Employees' compensation insurance: You may need to get worker's compensation insurance if you have employees. If your staff is hurt on the job or falls ill as a result, the insurance will protect them.

Property Insurance: This insurance includes loss or damage to your hotel's property as a result of fire, theft, vandalism, and other specified events.

9. Hire staff for your hotel

The employees will be appointed based on the size and requirements of the hotel industry. They include front desk employees, housekeepers, line heads, directors, waiters, chefs, servers, etc.

Necessary Licence and Registration You Need to Start a Hotel Business

Company Registration
Building Licence
Police Licence
Health Trade License or Trade License
ESI Registration
Sales Tax Licence
PF Registration
Bar Licence
FSSAI Food Licence
GST Registration
Fire Safety Permit

Acquiring these licences and registrations is the challenging part of the establishment of a new hotel business in India, but still, it is necessary for the smooth running of your business. Therefore, you must consult professional teams who will help you complete the required registrations and get the licences easily.

Conclusion

If you follow the above steps, you ought to be in a fantastic position to develop a prosperous hotel business in India. You can also contact our legal experts at Online Legal India to obtain the necessary licence and complete your documentation. You will get the service completely online and hassle-free.

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How To Start Hotel Business In India- The Ultimate Guide For Beginner’s

Are you thinking or want to know the procedure of How To Start Hotel Business In India? Then you are in the right place. This article will give you all the information about the Procedure of How To Start Hotel Business In India which include a hotel business plan, ideas, and how to profit from it . The hotel business in India has become one of the most eye-catching businesses nowadays, and it is a high-profiting business. Yes, it takes a lot of investment, but if you plan everything properly and work hard, you can start making vast amounts of money soon.

It is also proven that the Hotel business in India is very successful. Anyone with complete knowledge, experience, and money can have a start. The hotel business is simple, but it requires much hard work to do. You should have the best management staff, the best location, the best facilities, and the best behavior.

The environment and surroundings also significantly influence the hotel’s success. There are some unique profitable ideas for the hotel business in India: Five-star hotels, business hotels, airport hotels, villas or resorts, etc. All of them are immeasurably profitable if managed correctly.

How can I start my own hotel business in India?

Table of Contents

If you want to start your own hotel business In India, then you must follow these steps to take a start in the hospitality industry:

The first step you must follow is to find your market needs, look for what the market lacks and discover what you can provide to make you different from your competitors. For that, you must closely examine the market and research and visit places to find your value. It will make you sure about your target audience, how the market behaves, and how to survive in the hospitality industry.
The second step is to make a strategic plan for your Hotel business. Now that you know the market, you must determine how your system will work. What you will be décor, where will be the location, how much space you will have, what kind of facilities you can provide, where to get the staff, how much and where you will charge your customers and many more things that include in your strategy.
Now the third step comes in; you must do the finance in this step. Calculate all the costs of everything that will be used, how much everything will cost, and from where you can get that investment. You will determine whether your business is profitable or must compromise for some years by running all the numbers. You must arrange a finance team to look after your sales and all the revenue management. But remember, this Hotel business In India requires a humongous amount of investment.
The next step includes your financial plan to launch your business and all the paperwork. You must register your hotel and discuss your financial project with your bank, which will provide you with all the money and resources to start your hotel business.
Now you have to hire and train your management team, which will look after all the management work available in this hotel. It is a huge responsibility because it is the most fundamental thing of the hotel. The first thing customers look for is a good experience, and providing it depends on your management team. Then you will hire your marketing team to advertise your hotel to the world and make it reach every end of the world. Marketing is also essential because, with it, you can get the public; you also must create breathtaking profiles on social media which attract the audience towards you.
The last step is launching your business after you have done all the hard work, now is the time the world will know about your hotel and can make reservations for rooms or arrange any event.

By following these steps, you can start your own hotel business In India, and after some time of patience and hard work, you will get your reward in high-margin profit.

What is the most profitable part of a hotel Business

Most of your revenue comes from hotel room rentals. The hotel business generates revenue from hotel rooms, restaurant food, beverages, and any event inside the hotel.

The hotel derives significant revenue from very few things hotels mostly earn from rental spaces, but they make massive amounts of money from one thing, providing them with much income.

Likewise, the hotel industry also gets much revenue from their restaurants. Every person will eat food or buy anything that will directly benefit them in a vast amount. So, the hotel business In India can be very profitable if they provide the best services, which will make their customers and increase their reputation.

How can I make my hotel Business profitable In Indian Market

The hotel business requires a sharp mind who can profit from nothing. There are some methods through which you can increase your hotel revenue.

These ways include You can offer early check-in and Late checkout. It will help you in many ways because sometimes travelers are willing to leave early or stay for a bit more, so you can offer them and profit from it.

You can partner up with local events which can take place at your hotel, and in this way, more of the public will come to know about your hotel.

Another thing you can do is make a strong media team that will update your Hotel website; social media accounts with new prices and offers; you can also do promotions in the off-season, attracting the audience towards your hotel.

By following Tis Natural tips You can easily Make Hight profit From Your Hotel Business In Indian Market.

What are the top amenities you plan to offer guests at your hotel

What amenities are hotels’ unique facilities and perks, such as exemplary customer service? These amenities are given to make customers happy and make their trip better. Amenities are essential because the customers always remember the little pleasures of the hotel, which will make them come again. They can also recommend your hotel to their families, so eventually, in a chain cycle, it will benefit your hotel.

The top amenities you can offer guests are welcome gifts, Coffee kits and mini fridge, personal care items, complementary books, complimentary breakfast, and many more. Providing these will increase the joy in the customers, and they will enjoy being at your hotel, which will ultimately help your business.

How do you plan on differentiating your hotel from others in the area

You can differentiate yourself from your competitors in many ways, such as by working on your target audience. The one thing is making your own identity and then attracting the public towards your uniqueness. Find the target groups for which your hotel is designed and offer them all the facilities; in this way, you will be different from your competitors. It would be best if you also worked in your technical department. Always stay updated with the world and upgrade the technologies as they upgrade daily.

Customers like it when the hotels are fully upgraded with the technologies. Customers always find ease in everything, so providing that easiness to them will offer more value to your hotel business in India than other competitors in the area.

What type of guests do you think your hotel will attract

There are many types of guests in this world. Everyone has their purposes for their stay; some come to enjoy, some come for meetings and events, some come only to spend the nights, and some come from other cities to attend any function. Hotels will always attract the type of audience that they hotel will target. If you are targeting travelers, a business person may need help to stay at your hotel.

Most hotel business in India provide facilities to travelers because India has good traveling locations, more people will visit your country and find your hotel. They will get attracted by the promotions and offers that are running on social media.

Is owning a hotel In India a good investment

Investing in a hotel is considered one of the most profitable ways to increase your money Specially In India. Owning a hotel Business in India gives you many benefits. Investing in a hotel is the perfect way to double your money. The hospitality industry offers the highest rewards in the market, so if you are hard-working and have an ideal plan to work your things out, you can generate much revenue from this business. It is the most successful business in the real estate industry, but one thing that is required is a large amount of money; you have to invest very big.

Owning a hotel is a good investment because it has almost negligible chances of failing. It has tax facilities, you can build your community, and you can provide facilities to tourists; you can also promote tourism in other countries and make our country a global tourist spot.

What is a hotel’s primary source of income

The hotel Business in India provides many facilities, and from that, they make their revenue in different ways. The statistics say that the primary source of income for the hotel in India is rental rooms that they provide to travelers, their customers, guests, and businessman. The cost of rent per room gives them vast amounts of money every day. At the end of the year, it becomes the huge amount of yearly revenue that they generate just by renting the rooms.

They also have restaurants and other paid facilities that benefit them, and they sometimes also offer to arrange events which adds to their revenue. The hotel business possesses a considerable profit margin, and its primary source of income is rental rooms.

Why the hotel industry is the best:

The hotel industry is considered the best because it has a history of people investing their money in this business and making much money. History and statistics tell us that this industry is very profitable. This industry is also good because it has a future. After all, traveling cannot be banned anywhere in the world at any time, so the hotel Business in India have a superb lot ahead.

The hospitality industry is also considered good because this business plan has few chances of failing. It has many opportunities and a more extensive community to help you in the market. It gives you room to grow; you can become a better version of what you are today. This opportunity motivates most business people to grow more and more. The most fun reason is that you can enjoy all the facilities and enjoy some time in your resort or hotel.

Which is the best field in hotel:

The hotel industry has many jobs and fields to have a future. You can start with a lower position, gain experience, and even be promoted to a better post. The best area in the hotel is the hotel manager. You have complete responsibility for the management of the hotel. You must control and ensure every guest stays peaceful and joyful; no one should face any inconvenience; it all depends on you. But many other jobs are available, like reservation manager, media person, marketing agent, etc. You find your field of work and become a pro at it, and then the hotel will want to give a job to you.

At the end of the article, the business plan in the hospitality industry requires much investment. Still, it provides the satisfaction that your business will reach its high if you have the best projects, management, and strategic goals.

This field of work has a great future, and you will learn a lot of new market strategies; you will understand and make significant revenue out of it once you have started your business and it has shown you a little positive response.

It needs massive hard work and consistency, and most importantly, your patience level must be at its best level because this field will take time but eventually will benefit you. All you have to do is give the best experience to your guests and gain more public attention to your hotel. One day it will profit you in ways you have never imagined.

Here Are Some more Hotel Business India.

What is a good profit margin for a hotel?
Studies show that 10% of the profit margin is good profit for a hotel.
What is the most profitable hotel in the world?
Marriott International is the most profitable hotel in the world.
What is a perfect sale in hotels?
Perfect sale is considered when all the rooms are occupied or rented.

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How To Make a Successful Hotel Business Plan?

How to Start Your Dream Hotel Business in 2022

It is a known fact that the hospitality industry was one of the fastest-growing and profitable industries before the pandemic. With the pandemic, the hospitality industry across the globe had its own set of repercussions, and India was no escape to it! However, with ease in restrictions and people adapting to the new normal, the hospitality industry is picking its pace and has started to garner its revenue. If you are wondering about starting your hotel business in 2022, now is the right time!

With lockdown restrictions easing, several individuals have started to take up quick weekend breaks. There has begun an increase in the demand for affordable hotels and lodging, but also luxury accommodations have started to be in demand. Even though one cannot forget how the pandemic hampered the growth of the hotel industry, the hospitality industry always offers a rewarding experience to all hotel owners or those who want to start a hotel business. With the hotel industry all set to seek its boom, it’s safe to say that it is the right time to start your own hotel business! In this article, we shall talk about how you can get started with your own hotel business, the costs that can likely arise, and everything you need to know about starting your own hotel business in 2022.

In today’s world, starting a hotel business can seem to be an effortless task due to the instant access to resources and given technological advancement. However, the pandemic has taught all the hoteliers to rethink their hotel business strategy and ensure that they plan diligently. They must ensure that their establishment (hotel) is well prepared in infrastructure, services and lodging and is well-equipped to face all the challenges. One must remember that it takes a lot of time to start a hotel business, and you must take the enormous step to take a risk and earn a higher amount of profits.

Table of Contents

How to Start Hotel Business in India ?

As we understand how to get started with our hotel business, we have brought you some expert tips and advice from the experts! Let’s read on to find out!

Discovering the market need

The first and foremost step you need to take while starting any business is to identify the market gap. Similarly, for anyone who wants to start a hotel business, it is essential for you to look into multiple aspects such as industry trends, location, type of hotel. It would be best if you kept yourself informed on a recurrent basis. Once you understand the basic information about the industry, it is time for you to start market research for your hotel. Start by identifying the need in the market by looking into areas such as your audience, goals, competitors and other such related characteristics. To intensify your search, you can look into the following features such as;

Type of Property – It is well-known that all hotels are not the same. The first step you must take is to determine the property type. You must start by thinking about what you will offer to your customers in your restaurant. Make sure that you have ample options for your services and ensure that they are unique compared to other hotels around your location.
Size of the Hotel – The next important factor you must look into is the size of your hotel. You must figure out the number of rooms you will offer and how different your establishment (hotel) will pan out compared to your competitors serving in that particular location.
Location – As for location, you should now look into factors such as area of operation, demand in the area, amenities in the site and if your hotel is close to airports, beaches or other essential venues.
Audience Demographics – You should now look into your target audience or guest demographics, such as frequency of visits, travel purpose, and other travelled-oriented characteristics. You must determine whether your target audience will be travellers, tourists, businessmen, families, couples, solo travellers or other related demographic groups. Understanding your audience demographics will help you create a marketing plan for your hotel business and give you a competitive edge.

Crafting Your Strategy

Upon understanding the needs of the market, you must create a solution so that your hotel business will address the market demand. You must ensure that your hotel plan has a unique solution with respect to the concept, location, ambience, amenities, marketing, promotion, and services. When you figure out these concepts at an early stage, it will help your business stand against the competition and capture the market strategically. You must look into other important elements such as pricing and revenue, customer satisfaction, sustainability and hotel management and maintenance.

Determine Your Numbers

Once you have completed chalking down your strategy, it’s essential to plan all your numbers and ensure that your hotel business turns out to be profitable. You must determine all the room revenue, hiring cost, license and permit, and other operating expenses. Once you have determined all the costs involved, we should look at the sources of finances available for your hotel business. You should also project all your potential cash flows and then opt for credit, either long-term loans or short-term loans.

Doing Your Paperwork

We all know that starting a hotel business involves quite a lot of regulations with respect to license, finance, insurance and other related regulatory measures. You must approach the proper authorities and get all your business requirements according to your hotel business. You must also get permissions related to your location, building, renovation permits and licensing and serving food and alcoholic beverages. Given the pandemic, you must also ensure that your hotel business adheres to all the health and safety protocols laid down by the respective government and regulatory authorities. Once you complete your paperwork, you must check with the requirements at the local and state level and ensure that there are no mistakes on your part.

Launch Your Idea!

Once you have completed all the above steps, it’s time to take action! You are now ready to launch your hotel business in the market. With your plan, the right team, and a well-defined strategy, it’s time for you to bring your hotel business to live! You can launch grandly and introduce your hotel business and yourself to all your partners, influencers, and other potential stakeholders.

We are sure that starting your own hotel business is no longer a strenuous task! It has many risks, but it’s just part and parcel of every business. It’s time to get your planning on track and launch your hotel business today! Start your hotel business and get cooking!

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How To Start A Hotel In India

Post author: Kanakkupillai
Post published: July 30, 2021
Post category: Business Tips / Latest News

How To Start A Hotel Business In India

Hotel in India is one of the lucrative and best business ideas In India, as in India travelers inflows are expanding step by step because of the prime attractions here and assorted culture. Henceforth, lodging business can be one of the gainful organizations to begin. A business foundation giving lodging, dinners, and other visitor services is a Hotel business In India. All in all, to be known as a Hotel in India, a foundation must have at least six letting rooms, no less than three of which more likely than not joined private washroom offices. In spite of the fact that lodgings are grouped into ‘Star’ classifications (1-Star to 5-Star), there is no standard strategy for doling out these appraisals, and consistence with standard necessities is deliberate.

Step 1: Find a market need.

The first and most important step when learning how to start a hotel business is to gain a thorough understanding of the hospitality industry worldwide, as well as in your location. To get started, find your favorite hotel news sources, then set aside time each day or week to stay informed. Once you have some familiarity with the industry, it’s time to dive into the market research for your hotel.

It is a great place to start business registration in India . It’s where you can read the latest news, thought leadership, and best practices from a wide variety of industry experts. The goal of your industry research is to get a clear idea of whether you can be competitive in your market. Also, what characteristics your hotel will need in order to succeed.

Rather than starting with an idea and making the research fit, try to find an area of need in your market. What audiences are underserved? Where is demand outpacing supply? What does your location need in terms of hospitality and accommodation?

To give you a good understanding of where you’ll fit in, your market research should include:

Property type: All hotels are not built the same. The industry is made up of resorts, spas, airport hotels, all-inclusives, hostels, boutiques, and many other property types. Determine what property type you plan to offer and what other options in that category exist in your location.
Hotel size: Closely related to your property type is the hotel size. How many guest rooms will you offer, and how does that compare to your competitors?
Star rating: What level of service and hotel amenities do you plan to offer?
Location: What region will you operate in? Is demand increasing in the area? What location amenities, like airports, beaches, or event venues, will you be in close proximity to?
Brand affiliation: Will you be a part of a larger brand’s umbrella? Being affiliated with a brand can help with marketing, business intelligence, pricing, and audience targeting.
Extra amenities: What services or amenities are important for hotels of your type and star rating in your location? Things like free Wi-Fi, meeting space, a pool, or wedding services are all important, depending on your target audience.
Guest demographics: How would you define the types of guests who may frequent your location? What is the purpose of travel, and what are some common characteristics of these travelers? Knowing whether you are targeting business travelers, families, couples, solo travelers, retirees, or other demographic groups will help you to craft your marketing plan and hotel concept.

[Also check our Article: How to Start a Rice Business in India ? ]

Step 2: Craft your hotel’s strategic goals.

Once you have an understanding of market needs, you’ll need to create a smart solution to fill that gap. Your unique combination of amenities, concept, decor, marketing, location, and services can help you stand out from the crowd and capture market share if you approach it strategically.

Measuring and increasing customer satisfaction.
Creating a solid revenue management system.
Building a strong online reputation.
Attending at least one hotel industry conference.
Considering working with a consulting firm to bypass the common roadblocks new hotel owners face.

Make sure the needs of the market and your target audience, along with your business needs, help determine your goals. This will ensure that everything you do helps your customers, as well as your bottom line.

Step 3: Run the numbers

With your goals and plan in place, it’s time to run the numbers to make sure you’ll be profitable. A basic overview of hotel finances will help you hire the right revenue manager and sales team later on. The two key areas to focus on are profitability and any external factors that may affect your hotel business. You’ll also need to estimate initial costs for your hotel business. This includes startup and hiring costs, licensing, permits, construction, renovations, and your first year of operations.

Set up a few scenarios in your forecasting to see how key decisions affect the potential profitability of your business. For instance, do you want to buy or build? Buying into a franchise or taking over an existing hotel building has lower startup costs, unless you have to renovate extensively. But it also requires you to establish your new hotel identity, which can be a challenge depending on the current state of the business. On the other hand, building a hotel, while usually considerably more expensive upfront, can provide a solution to a lack of available buildings and can be more lucrative in the long run.

[Also check our Article: Start a Jewellery Business in India ]

Step 4: Review financing options for your hotel business

Once you decide on the right financial plan for your business, you’re ready to fund it. There are a number of available options for financing your hotel business.

With traditional credit lines, you receive financing based on long-term assets. These are things like real estate owned by your hotel as well as cash flow projections and calculations submitted during underwriting. Lenders review these assets before awarding your loan.

With specialty credit, you’ll receive financing or credit lines based on near-term assets. This might be hotel equipment or invoices from accounts receivable. The idea is these backings are more liquid than what’s needed in traditional lending.

Step 5: Do your paperwork

There are many important legal, regulatory, and insurance requirements to fulfill in order to establish any new business. Your hotel business is no different.

Consult with your legal, insurance, accounting, and operations teams to determine the requirements for your location. At a minimum, you’ll need to set up a business structure and get business insurance. You will also likely need building or renovation permits, hotel licensing, and licensing for serving food and alcoholic beverages. There will also be a number of health and safety requirements as you complete your building or renovation process.

Contact us Now for FSSAI State License | Central FSSAI License FSSAI Registration | FSSAI License Renewal

Step 6: Hire and train your hotel team

A business is only as good as the team members that contribute to its success. By hiring great employees at all levels, you’ll set yourself up to deliver value to your guests and become a market leader.

Many hotels opt to hire for executive and departmental positions first, setting the tone and direction. These leaders can then identify what they want to see within their teams and how many staff members they need. Each team should identify the roles and skills they’re looking for, as well as developing a plan to reach and source great new hires.

Step 7: Draft a marketing plan

You’re now ready to share your hotel concept with the world. Well in advance of opening, you’ll need to spread the word and set yourself up for a profitable launch.

Your hotel marketing plan is an important part of your overall business strategy. It guides your decision-making on decor, daily operations, communications, customer service, and more.

Step 8: Launch your hotel business

At this point, you’ve put in the work to open a profitable and high-quality hotel business for your market. You’ve got the plan and the team to make your vision a reality. Now it’s time to launch.

The goal of your launch is of course to introduce your hotel to guests. But it’s also a great opportunity to introduce yourself to the local community, key stakeholders, influences, and potential partners. Put your best foot forward with these audiences by planning a grand opening event that reflects your mission and values.

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Introduction: Hotel Business in India

The hospitality business was prospering all over the world until COVID-19 arrived in the country. India was no exception, with hotel reservations sold out months in advance. It wasn't just the luxury hotels that did well; consumers enjoying quick weekend trips also helped to boost revenue in the inexpensive boarding and lodging sector. While the current scenario has slowed the expansion of these enterprises, working in or starting a hotel in the hospitality industry is always a rewarding experience. As of 2019, the hotel business has a market value of $1 billion. However, because to the present pandemic crisis, revenues have decreased by 48%, but the industry is expected to grow by 2021-2022 as a result of a number of causes.

Table of Contents

A Step By Step Strategy For Starting A Hotel Business Is As Follows:

Noc from the ministry of tourism, premises/building permit, get a fire department noc, eating house license, police license for hotel, health trade license or trade license, business registration, esi registration, pf registration, bar license, fssai food business license, the fssai license is of 3 types:, shops & establishments act registration:, certificate of environmental clearance, lift clearance, service tax registration.

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Similarly, there are a few things to know before starting a business, and Corpseed is here to assist you with a start-up guide on how to start a hotel business in India. In addition, India is one of the top countries where the travel and tourism industry provides a significant portion of the country's GDP. The demand for hotel rooms is increasing at a rate of 6% per year, according to the present trend. Supply, on the other hand, is growing at a rate of 3% per year. As a result, for someone wishing to establish a new business, the hotel industry has a lot of promise.

To control and direct a steady growth as well as obtain funding from outside investors and lenders, it is critical to first sketch out a clear road map of your business strategy, just as it is with any other firm.

Step 1: Prepare a strategy- The first phase in the process is to create a business strategy that shows how the hotel will grow over the following five years. This should include foreseeable objectives, barriers, a SWAT analysis of the industry, and detailed plans for achieving the objectives. In other words, it should be a concise, straightforward description of the overall business strategy.
When you present your business plans to investors and lenders in order to obtain a business loan, they usually read the first page and decide whether they want to read more, so it's critical to lay out all of the critical information upfront, such as your market analysis proving the need for a new hotel and your unique skills and qualifications for meeting your objectives.
Step 2: Industry analysis- Given the sheer amount of hotels opening across the country these days, this may appear daunting at first. However, you must concentrate your efforts just on the hotel industry that corresponds to your hotel plan. Is it a small motel with only the bare essentials? Is this a high-end boutique hotel? Or perhaps a five-star resort with modern amenities? You must first identify which market niche you want to target, and then research the trends and projections that are likely to affect that market niche.
Step 3: Customer analysis- Even in the hotel industry, understanding the needs of your target clients is critical. As the saying goes, "the customer is the king of the market." You must obtain answers to queries such as who is most likely to select your hotel. Is it for work or pleasure that they are traveling? Are they accompanied by children? How often do you think they'll come to the hotel? What would their ideal spending limit be? What do you think their expectations will be? What are the most recent amenities? Interiors with opulence? What about outdoor activities? And so forth. It is critical that you determine the demographics of your potential customers and develop a plan to suit their needs.
Step4: Competitor’s analysis- There are two kinds of rivals to consider: Direct competitors include hotels that target your market, as well as indirect competitors such as restaurants and other businesses that are only a portion of your market. As a result, you'll need to devise a strategy to ensure that your hotel stands out.
Step 5: Planning the marketing- Product, price, location, and promotion will be the four Ps. The product is your hotel and its services, the price is the price of your products and services, the place is your hotel's physical location as well as its website or other booking sites, and promotion is your way of persuading people to stay with you not just once, but repeatedly.
Step 6: Operations- Your short-term operations will consist of day-to-day tasks such as booking reservations, checking in and out clients, luggage handling, housekeeping, accounting, and so on, whereas your long-term operations will consist of how you plan to meet your objectives such as achieving a certain rate of occupancy, adding more restaurants, and other such additional services to attract more visitors.
Step 7: Management- A good management team is critical to the success of your hotel business since it will not only persuade financiers to participate in your enterprise, but it will also ensure that operations run smoothly.
Step 8: Financing- Finally, but certainly not least, obtain business financing for your hotel venture. Given the potential for expansion in the Indian hotel sector, a variety of lenders, including banks and non-bank financial companies (NBFCs), including digital NBFCs like Lending kart, are eager to invest in this expanding market.

List of Licenses and Permits Required

A list of licenses and registrations are necessary to obtain for beginning a hotel business in India

If someone wants to start his or her hotel business then firstly they have to get a no-objection certificate from the ministry of tourism. The applicant has to register himself on the site of the ministry of tourism to obtain the no-objection certificate.

After getting the NOC from the ministry of tourism, the Applicant has to apply for the building permit because every hotel must get an appropriate building permit according to the specific city/town from planning or development or municipal Act.

A NOC from the concerned fire department is required as well before starting the business. The applicant should apply through an application accompanying necessary documents like- building plans, building model, and certificate from the architect. A questionnaire related to compliance with fire safety rules and regulations shall also be filled out by the applicant. An inspection of the premises will be carried out by the fire department officials after the verification of the documents.

An Eating House License is legal permission to operate a business where any type of food or beverage is legally supplied for consumption. This license is governed by the Delhi Police Act and is required. Along with other fundamental licenses, the Eating House license is a requirement for performing food business.

Signage License

The Police Department keeps a careful eye on hotels because they are public areas. As a result, all hotels must keep a proper log of all Guests who have stayed at the hotel, obey all applicable regulations, and have valid Police Department permission. The power to license Places of Public Entertainment, which is held by the Commissioner or Additional Commissioner of Police, mainly applies to hotels.

For restaurants and hotels, a health trade license from the local Health Department is normally necessary. The Municipal Corporation is normally in charge of issuing health trade permits. Businesses that have a direct impact on public health must get a health trade license. The awarding of a health trade license is contingent on compliance with appropriate hygiene and safety standards that are critical to public health.

It is recommended that a hotel be established under a fictitious legal organization such as a corporation or limited liability partnership (LLP). The promoters' liability for the business can be restricted by operating it under an artificial legal structure, and the business as a going concern can be readily transferred to another individual.

ESI is a government of India-owned Corporation that is under the Ministry of Labour and Employment. In India, businesses with ten or more employees must register for Employee's State Insurance (ESI). Employers must contribute 4.75 percent of salaries to ESI employer dues for all employees earning Rs.15,000 or less to stay in compliance with the ESI Regulations. The employee must pay 1.75 percent of his or her wages in ESI contributions .

Any business in India that employs more than 20 people must register with the Employee Provident Fund (PF). The PF Board is responsible for administering a contributory provident fund, a pension system, and an insurance scheme for workers in India's organized sector.

A bar license will be necessary from the relevant authorities if the hotel operates a bar or offers alcohol in its restaurants. Departments under the State Government are usually the ones who issue bar licenses. As a result, the requirements for obtaining a bar license differ from state to state.

One of the necessary conditions after registering a business entity is to obtain Government License / Permit. In case you are in the food industry e.g. hawker, itinerant vendor, temporary stallholder; food distributor in any religious or social gathering events except a caterer, or by any way related to manufacturing, transportation, storage, or distribution of food product or tiny food business, one must obtain an FSSAI Registration or FSSAI License before starting operations. Below are the categories in which FSSAI has divided License/Registration based on the turnover limits of the company. Every food company owner, including petty vendors and hawkers, must obtain an FSSAI food license. The Food Safety and Standards Authority of India is abbreviated as FSSAI.

FSSAI Registration
FSSAI State License
FSSAI Central License

FSSAI Registration / License applications can be submitted either offline or online. The food company owner must submit an application to the Licensing Authority together with the required fees to receive the license offline. However, the Food Licensing and Registration System (FLRS) site, which was developed by the FSSAI, can be utilized for online license/registration. The food business operator receives an FSSAI license number after completing the registration process.

The Shop and Establishment Act (the "Act") is enacted by each state. The Act's general requirements, however, are the same in every state. The Labour Departments of several states are in charge of enforcing the Shop and Establishment Act. All stores and business establishments in the state are governed by the Act. The registrations are issued by the individual states under the Act, and so they differ slightly from one state to the next. Under the Act, shops are defined as places where items are sold to clients, either retail or wholesale, or where services are provided to them. It encompasses offices, godowns, storerooms, and warehouses that are used in the course of a trade or business.

Environmental clearance is a technique for obtaining government approval for undertakings that pollute the environment. The government has compiled a list of projects that require environmental approval, such as mining, thermal power plants, and infrastructure. The projects are divided into two categories in the EIA Notification: Category A and Category B. Category A projects are approved by the Ministry of Environment, Forestry, and Climate Change, whereas Category B projects are approved by the State Environmental Impact Assessment Authority.

Electrical lift installations in commercial, residential, office complexes, and other locations (excluding those covered by the Factories Act of 1948) are examined and licenses are issued/renewed to ensure the safety of those who use the elevators.

The hotel's accommodation services and the culinary services offered by the hotel's restaurant are both subject to service tax. As a result, hotels must register for service tax and keep it up to date. Hotels with room tariffs of Rs. 1000/- and more are required to pay a service tax of 14 percent on 60 percent of the room charge (the net rate of Service Tax comes to 8.4 percent). The service tax is applied to 40% of the food and beverage bill at a rate of 14% for restaurants (the net rate of service tax comes to 5.6 percent). Furthermore, the use of a banquet hall where considerable food is served is subject to a 14 percent service tax with a 30 percent rebate (the net rate of service tax comes to 9.8 percent).

FSSAI Basic

If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.

BAR License

A bar license allows you to sell alcohol for consumption on the licensed premises, but it does not allow gaming or take-away liquor. This liquor license allows a maximum of 100 customers, over the age of 18, on the premises during trading hours.

Eating house License

Apply for Eating House License to avoid any penalties from state police department. No Hidden Fees. 100% money back assured. No visit to Govt office. fast delivery. track order online.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Surbhit Sharma

I have worked for many internet blog pages and news portals. currently, I am working as a content writer for Corpseed Pvt. Ltd. I like to write blogs and articles in the field of different services.

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How to Set Up a Hotel Business in India

How to Set Up a…

Never a Shortage of Tourism and Hotel Business Potential in India

Rich in culture, heritage and nature make India a hotspot for tourists from all over the world. There seems to be endless tourism in the country as tourists keep coming back for more. India is a must-visit once in a lifetime kind of place. It should be on everyone’s bucket list. That said, India is reforming its pro-business environment to attract foreign investors to its shores. Although Indians know the best of their culture, nature and heritage, foreigners are more likely interested in marketing India as a definite holiday and business destination. Thus, if you plan to set up a hotel business in India, there is no shortage of supporting the government as well as natural appeal to get you going.

For Every Traveller

India is not exclusive for the regal and luxury traveller. India has vast options for every traveller to explore and experience India first hand. There are bed and breakfasts for the backpacking traveller, family-friendly budget hotels as well as luxury branded resorts. For every destination, there is plenty of accommodation of choice. Even if the place is quite the distance from the hotel, there are a plethora of things to do in India that is never a dull moment.

Make It Yours Truly

Owning a hotel business in India is not without fuss. Let’s start with the basics. Before getting serious about setting up a hotel business in India, why not take the time to do some research. Even while you are visiting, you can take note of the needs of a particular area. Keep tabs on cultural and traditional ways; there would be a niche to fill. This niche can be where your hotel services fit the puzzle. By now, you could also decide on the type of hotel business suitable for the area. After that, get a company registered . Foreigners are advised to form a Company where liability is limited to the investment. Now that you are seriously getting involved, time to move on to identifying the area required for your hotel. Even if you want the hotel to reside in the outskirts, be sure there is connectivity to it so that people can reach your hotel. A typical hotel room takes up 220 square feet. The hotel room corridor must be at least two feet wide. Decide how spacious your hotel will be and engage interior designers for the look and feel of your hotel. But, as much as you plan the perfect layout for your hotel, it must meet with the fire safety requirements. The following are licenses needed for your hotel business in India:

Fire Safety Permit – approved by the Fire Department
Building Permit – approved by respective municipals
Police License for Hotel business – approved by Additional Commissioner of Police
Health Trade License – issued by Municipal Corporation
Employee State Insurance – register with the Ministry of Labour
Provident Fund registration – register with Provident Fund Board
Bar License – issued by the state government
FSSAI Food Business License – published by local FSSAI office
GST Registration – register with the tax authority

How To Start A Hotel Business In India

Starting your own hotel business in India can be a great way to make a living and have your own business. Here are some tips on how to get started:

1. Research the market. There are a lot of different types of hotels available in India, so it’s important to do your research and figure out which type of hotel will be best for your business.

2. Get licensed. In order to legally operate a hotel in India, you’ll need to get licensed from the government. There are several ways to get licensed, and it can be a process that takes some time and effort.

3. Get started with a business plan. Before you start your hotel business, it’s important to

Table of Contents

How to Start a Own Hotel With Full Information? – [Hindi] – Quick Support

Decide what type of hotel you want to start..

There are many different types of hotels you can start in India. You could start a budget hotel, a five-star hotel, or a resort hotel. It all depends on what you are looking for and what you can afford.

Choose the location of your hotel

You’ll need to decide where you want to open your hotel. India has many different cities and towns, so you’ll have to choose one that has a high demand for hotels.

Get a business license and register your company

To start a hotel business in India, you’ll need a business license and to register your company with the government. You’ll also need to get insurance for your business and to lease or purchase the necessary property.

Research the hotel market in India.

There is no one-size-fits-all answer to this question, as the best approach may vary depending on the size and location of the hotel market in India. However, some tips on how to start a hotel business in India include doing your research and identifying potential areas of growth for the hotel industry in India. Additionally, it is important to make sure that you have a strong strategic plan for your business, as well as a clear marketing and business strategy. Finally, it is also important to have a strong team in place and to be willing to invest in your business in order to achieve success.

Develop a business plan for your hotel.

First and foremost, you should create a business plan for your hotel. This will give you a comprehensive understanding of your business, and will allow you to track your progress and make necessary adjustments.

Additionally, you will need to identify your target market. This can be done by conducting market research, or by analyzing your competition. Once you have a target market, you will need to develop a strategy to reach them. This may include developing a marketing plan, developing a product or service that meets their needs, and/or setting up a distribution network.

Once you have a strategy in place, you will need to put it into action. This may include launching a campaign, hiring a marketing team, and/or creating a website. Finally, you will need to monitor your progress and make necessary adjustments. This will allow you to ensure that your business is successful.

Find the perfect location for your hotel.

The first step in starting a hotel business in India is finding the perfect location. India is a huge country with a variety of climates, so it’s important to find a location that will meet your specific needs.

Once you have found a location, you will need to consider your business model. You can either operate a traditional hotel or create a boutique hotel with a unique atmosphere.

Once you have decided on your business model, you will need to start planning your hotel. You will need to identify your target market and create a marketing plan to attract them. You will also need to install the necessary infrastructure, such as a swimming pool and a gym.

Once you have completed all of these steps, it’s time to start building your hotel. You will need to recruit the necessary staff and build the necessary infrastructure. Be sure to keep an eye on the market, as the industry is rapidly growing in India.

Design and build your hotel.

If you want to start a hotel business in India, you will need to first consider the different types of hotels that are available. There are five types of hotels in India: budget hotels, mid-range hotels, luxury hotels, five-star hotels, and international hotels.

Budget hotels are the most common type of hotel in India. These hotels are usually inexpensive and offer basic services such as rooms, breakfast, and lunch. Mid-range hotels are the next most common type of hotel in India. These hotels are typically more expensive than budget hotels but offer more services, such as rooms with a view, breakfast, and safes. Luxury hotels are the most expensive type of hotel in India. These hotels typically offer the best services, such as rooms with a view, breakfast, and safes. Five-star hotels are the most luxurious type of hotel in India. These hotels typically offer the best services, such as rooms with a view, breakfast, and safes, as well as other amenities such as a spa. International hotels are the least common type of hotel in India. These hotels are usually located in major cities and offer different types of services, such as rooms with a view, breakfast, and safes.

Once you have decided which type of hotel you want to start, you will need to decide how you will build your hotel. There are a few different ways to build a hotel: you can purchase an existing hotel, build a hotel from scratch

Market your hotel to guests.

Hotels are a great option for visitors to India. They provide a comfortable and luxurious place to stay, and they can be a great way to explore the city. You can market your hotel to guests by doing things like advertising in newspapers, online, and through word of mouth. You can also offer special deals to guests who book online.

In today’s economy, hotel businesses are booming. There are many reasons for this, but the main reason is that people are always on the go and want to stay in a comfortable, clean place. It’s also a great way to make some extra money. If you’re interested in starting a hotel business in India, here are a few tips to get you started.

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How To Start A Hotel In India- A Start-Up Guide

The COVID-19 pandemic has hit the hospitality industry, causing several hotels to shut shop and terminate the jobs of thousands of employees. However, that doesn’t mean the hospitality industry is dead, just that it needs to work some things out.

Table of Contents

Start A Hotel In India: Overview

Until COVID-19 hit the country, the hospitality industry was thriving all around the world. India too was no exception, with rooms getting booked months in advance. It’s not just the luxury hotels that did well; affordable boarding and lodging also garnered revenue, thanks to people taking quick weekend getaways . Know more about how to Start a Hotel In India?

While the current situation has hampered the growth of these businesses, it is always a rewarding experience to be in the hotel or Start a Hotel Business in India for that matter in the hospitality sector.

The hotel industry accounts for a $1 billion market size as of 2019. However, due to the current pandemic situation, the revenues have declined by 48% but the industry is likely to witness a boom by 2021-2022 due to various factors.

Similarly, there are few things one must understand before establishing a business and we at VakilSearch are here to help you with a start-up guide on how to start a hotel business in India.

Understanding the business models
Understanding the investment
SWOT analysis
Location and property registration
Licences and permit knowledge
Labour recruitment and compliances

Types of Business Models in the Hotel Industry

After a complete data analysis on the industry sector, the following business models can be listed down based on size, location, ownership, and target market.

Apart from the above-stated lists, another business model that can be a profitable option can be hotel aggregators. Similarly, a hotel aggregator is a piece of technology that searches several different hotel room suppliers for available hotel rooms and returns them in one search query. Additionally, it powers a hotel booking engine. Further, the aggregator model refers to a business approach utilised by various enterprises in the e-commerce space, wherein such businesses gather information on specific goods and services from various competing sources in the market through their online platform.

Understanding the Investment Model

A vital step in the hotel business is to understand the investment which will be required to start a business. Moreover, there are certain factors that will determine the investment required, such as size, type, location, nature of the Business Ideas, government regulations, licenses and permits required, etc.; based on the level of the amount which can be invested, the category of the hotel can be decided. Further, if financial assistance is required, loans are always an option. Normally 70% will be provided to you by banks.

Swot Analysis of the Business

The first step will be to identify the strengths, weaknesses, opportunities, and threats. Moreover, an example of strengths include the potential rise of tourist influx thanks to your hotel; weaknesses include the cost of land; opportunities, like strengths, look at the number of tourists in a tourist-heavy country like ours; while threats focus on what the competition is doing.

Identification of the Location and Property Registration:

The important step in establishing the business is to identify the location and demand in that particular location. Further, based on the demand, the size requirement can be ascertained and the location of the hotels can be determined.

Likewise, for example, if the intent is to open a mid-sized or small-sized hotel with 100 or fewer rooms: 20,000 to 50,000 sq ft. can be an appropriate land area and if the intent is to open a five-star hotel with amenities then 1,00,000 sq ft or so can be preferred. Further, another aspect to deal with is whether the hotel has to be established on an ownership basis or rental basis. Similarly, that is, whether the land has to be purchased (own premises) or rented premises because this will again affect costs during the registration and due diligence process.

To register your land with us please get in touch with our experts to understand the legal obligations of the registration

List of Licenses and Permits Required

A list of licenses and registrations are necessary to obtain for beginning a hotel business in India

NOC from Ministry of Tourism

Additionally, registration and functioning of hotels in India require permission to be obtained from the Ministry of Tourism.

Premises/Building Permit

Further, All the hotels must get a proper building permit according to the relevant Town Planning or Development or Municipal Act.

Fire Safety Permit

A fire safety certificate is given to those premises which have to subsume up to the mark fire prevention and fire safety measures as per the relevant fire safety rules and regulations.

Public Performance License

This is permission or license from the copyright holder of the song or expression which is going to be used for any event organised at your hotel.

Eating House License

Additionally, an eating house license is an integral license for conducting business where any kind of food or drink is supplied for consumption legally.

Signage License

If one wants to sell your restaurant either through word of mouth, logos, posters, pictures, and symbols, they are required to obtain a legal permit, which is the signage license.

Police License for Hotel

Similarly, all the hotels must maintain proper data of all guests who are visiting the hotel. Moreover, follow all the relevant rules and regulations and sustain a valid permit from the police.

Health Trade License or Trade License

A health trade license is generally for the local health department. Further, the municipal corporation of that area issues this license. Additionally, following the equivalent hygiene and safety regulations that are necessary for health is a prerequisite for issuing a health trade license.

Business Registration: Further, it is recommended to set up a hotel for a company or LLP.

Bar License

A bar permit will be required from the applicable experts. Moreover, the bar permit is normally given by divisions working under the state government.

FSSAI Food Business License

An FSSAI nourishment business permit under the Food Safety and Standards Act is for working at an eatery in India. Further, the FoSCos FSSAI sustenance business permit typically accommodates multi-year licenses.

Shops & Establishments Act Registration:

A license under the Shops & Establishments Act should be obtained if the place of business is also used for any commercial activity in direct relation to any kind of trade that is defined under the Shops and Establishment Act of that particular state.

Certificate of Environmental Clearance

Further, the restaurant is not only responsible for ensuring the health of the customers, but they are also legally and morally bound to ensure that its operations must not negatively harm the nature of the mother earth.

Pollution Certificate : Additionally, the pollution control committee of your city or region will be responsible for providing this license or NOC to ensure that the establishment does not violate pollution norms.

Lift Clearance

Further, in case of installation of a lift in a multi-story restaurant, clearance from an inspector from the electricity department as well as the Labour Commissioner will be required. Additionally, the electrical inspector issues the clearance.

OSP Registration:

As per the New Telecom Policy (NTP) of 1999, service providers in India involved in e-commerce, call centres are termed as ‘Other Service Providers’ (OSP).

Information Technology Compliance:

The business and online platform need to be compliant with the Information Technology Act of 2000 and the underlying rules such as intermediary guidelines, data privacy rules, etc.

‘ Sarai’ means any building used for the shelter and accommodation of travellers. The Act by such notice requires the keeper to register the Sarai as by this Act provided.

Labour Law Compliances:

Esi registration.

ESI is the autonomous corporation functional under the Ministry of Labour and Employment, Government of India. Similarly, registration with Employees State Insurance is necessary for business in India which hires 10 or more employees.

PF Registration

An Employee Provident Fund (PF) Registration requires any establishment that employs more than 20 persons in India. Further, the PF Board administers a contributory provident fund, pension scheme, and an insurance scheme for the workforce engaged in the organised sector in India.

Taxation Compliances

Income tax registration and returns.

Additionally, the income tax return is a form that is used to file the income tax with the Income Tax Department. Further, all entities will need to file their taxes on time and avoid penalties. Moreover, the form that contains information about income and tax payment by an assessee is the income tax return.

GST Registration and Returns

As per the GST law, every individual/company/LLP registered under the GST: https://www.gst.gov.in/ and the tax paid by filing form GST returns with the administrative authorities. Additionally, as a business person/ firm, one of your priorities will be to do a GST return filing

Applicable GST Rates

Professional tax registration.

Additionally, professional tax (PT) compliances laid down by many states as being applicable to companies making payments. Further, this is to their employees working in PT applicable states.

Insurance Guidelines

The main insurances:

Public liability – under the Public Liability Insurance Act of 1991. This insurance covers the amount which the insured becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury, loss, or damage to the property belonging to a third party
Product liability – under this, if the product proves to be dangerous or defective and it causes injury to a person or property, then this insurance cover is just what one needs
Fire policy – further, this policy will indemnify you against damage to your property caused by fire, lightning, or explosion.

What are the legal requirements for starting a hotel in India?

To start a hotel in India, legal requirements include obtaining necessary licenses such as FSSAI (Food Safety and Standards Authority of India), health licenses, and fire safety approvals. Compliance with local building codes and registration with the local tourism department is also crucial.

How can I secure funding for my hotel start-up in India?

Securing funding for a hotel start-up in India can be achieved through various means. Options include traditional bank loans, venture capital, private investors, government schemes or partnerships. A well-prepared business plan is essential when seeking funding.

What key factors should I consider when selecting a location for my hotel in India?

When selecting a location for a hotel in India, factors such as proximity to tourist attractions or business districts, accessibility, local demand and competition should be considered. Assessing the target market and understanding the local hospitality industry is crucial.

What licensing and permits are necessary to operate a hotel business in India?

Operating a hotel in India requires obtaining licenses and permits like the FSSAI License, GST registration, health permits and fire safety clearances. Compliance with local municipal laws and regulations is also essential for smooth operations.

What marketing strategies can be employed to attract customers to a new hotel venture in India?

To attract customers to a new hotel in India, employ effective marketing strategies. Utilize digital marketing, social media platforms and online travel agencies. Offering promotions, collaborating with local businesses, and providing exceptional service can also enhance visibility and customer engagement.

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How To Start/Open A Hotel Business In India

Introduction

Setting out to establish or develop a hotel business in India is an exciting undertaking with countless opportunities and the prospect of becoming a paradise for hospitality. India, one of the world’s most popular tourist destinations, offers a rich environment for business people looking to make a lasting impact on the vibrant hospitality sector.

Establishing a hotel requires meticulous preparation and intelligent execution, from envisioning the goal to navigating regulatory environments and creating an unmatched guest experience. To illuminate the path for prospective hoteliers, this guide provides insights, helpful advice, and a road map for navigating the complexities of starting a profitable hotel business in India’s varied and dynamic landscape. There are many essential things that one must consider when starting a hotel business in India. You will find all the necessary details in this article.

How to Start Hotel Business in India?

Lay down a concrete plan to start your hotel business in India. You would need to do a few things before your hotel is up and running.

Building Permit

Before opening a hotel and starting construction, you need land. To build a hotel on that land, you need a building permit. The Bureau of Indian Standards issues the National Building Code in India, offering a unique identity nationwide. All Municipal bodies, government departments, and construction agencies take the code as the building permit proof. Hence, it is a compulsory document to obtain before starting with hotel construction.

Establish a Market Need

Your next step for the hotel business should be understanding the market need, especially in your locality. You must be aware of what is happening in the hospitality sector in your area. You should also engage in market research and understand the competition. Look for answers to questions such as what your target audience is looking for. Is the demand outpacing supply? If yes, where? What is missing in the existing hotels in your locality?

Here are some more things to include in your hotel startup business plan market research:

Type of property – Decide what kind of hotel you wish to open. You can choose between a five-star hotel, airport hotel, resort, or villa as your hotel.
Size of hotel – Next, you must decide how many rooms you plan to build.
Star rating – It depends on the amenities and services you plan to offer your guests.
Location – Into the broader area, you must choose a specific area where you plan to open a hotel.
Brand affiliation – Do you wish to be part of a bigger brand or start with your small venture? Going with a brand will save you with marketing, audience targeting, pricing, and other factors.
Additional amenities – What facilities do you wish to include besides meals and rooms? These include pools, WiFi, wedding places, meeting rooms, etc.
Guest demographics – Determine information about the type of guests that will come and stay. What are their reasons for visiting, and what services may they need? These answers will help create an effective marketing strategy for guests, such as families, couples, solo travellers, etc.

The above pointers will help you determine the competitors and your target audience. Once you have these, you can focus on other things that are closely related, such as budget, financing term loans, daily operations, and marketing. Hence, spending time researching is critical.

Creating a Strategy

This step is very crucial and will decide a lot of factors. You should create a hotel business plan or strategy showcasing your goals within five years of starting this hotel. It should include all information, such as goals, obstacles, challenges, SWOT analysis, and your plans to meet these goals.

This hotel business plan should be short and crisp yet interesting for people to read and study. You will need this to present to your lender when you apply for a business loan . Most investors or lenders will decide only by looking at the initial information on whether or not to offer an MSME business loan to you.

Choose the Best Architect

In the development phase, your first step should be to decide on the architect of your hotel. It will be the first thing people will notice and admire if it is good. Your ideal approach should be working with experts or professionals with experience designing hotel architecture. A better idea would be to go with someone who has local knowledge as well; it can benefit you in many ways.

Get Legally Registered

Once you have the plan and your hotel is in development, it is time to get legally registered. You must declare whether your business is a sole proprietorship, limited liability company (LLC), partnership, or corporation. If you form it under an LLC or corporation, you will not be personally held liable for any court and legal matters. Moreover, you can also gain different tax advantages.

Apply for a Hotel Loan

To start your hotel, you need financing, which you can get by applying for a hotel business loan . These loans are tailored for hoteliers, and operators to meet specific needs. Its primary purpose is to provide a working capital loan to help you manage your day-to-day expenses.

These expenses include buying new properties, renovating the existing ones, purchasing equipment, hiring staff, and daily operational costs. These loans often differ from the various commercial loans available in the market.

Complete Your Paperwork

Starting a hotel business will require you to complete a lot of paperwork. These will be insurance, regulatory, and legal paperwork that must be filled and in order. For this, you must consult with your legal, accounting, insurance, and operations team to determine what you may need specific to your area and locality.

You may have to take many other permits before you can start your hotel operations. In addition, there can be various licences, such as for serving alcohol and food. You will also need a certificate from the health and security department confirming the safety of your guests. All these documents are necessary and required for all businesses including hotels.

How Much Investment Needed to Start a Hotel in India?

The cost of opening a hotel in India will depend on many factors, such as the area, size, services offered, and quality. Besides these, there will be the cost of acquiring land, construction charges, legal fees, furnishing prices, and much more.

Depending on what kind of hotel you wish to open and where, you can apply for a business loan in India with different nbfc, such as Flexiloans.

Benefits of Applying Quick Business Loans with Fintech Companies

Although you can always approach a bank for your business loan needs, Fintech companies, such as Flexiloans, can also offer you a loan that can meet all your requirements. Here are some advantages:

Personalised credit solutions
Quick processing of your loan
Business loans without collateral
No hidden charges
Easy repayment options
Good liquidity flow
Fast and easy application process

Are Hotels Profitable in India?

As of today’s date, the hotel business is the most eye-catching and profitable business in India. You will indeed need a lot of investment for the hotel business, but if you plan everything properly, such as arranging a loan for the business, you will not face many problems. However, remember there is much hard work before you see the profits.

Moreover, you need the right expertise, knowledge, and money (which you can get from taking a business loan) to start a hotel in India. To be profitable, you must hire the best staff and management team, choose the best location, offer the best services, and display the best behaviour. After all, besides the area, it is how you treat your people that will make all the difference.

Final Thoughts

Now wrapping up the tutorial on launching or operating a hotel business in India, remember one critical component of success: funding. As you embark on this thrilling adventure, consider FlexiLoans’ creative ideas for effectively securing the required funds. With its customised finance solutions, FlexiLoans is aware of the particular opportunities and problems the hospitality industry faces. When financing startup costs, growth, or unforeseen difficulties, taking advantage of their flexibility can be wise. In India’s varied and dynamic landscape, you may make your dreams of a successful hotel business come true with a solid plan, a dedication to excellence, and the appropriate financial partner.

Ans: The investment cost for opening a hotel depends on various factors. These factors include the locality, size, facilities, rooms, etc.

Ans: To start a hotel business, you must have a thorough understanding and expertise in the hospitality sector. It would help if you had land to build your hotel. Also, remember to check for your eligibility for a business loan for financing purposes.

Ans: The hotel business is a very eye-catching business in India. It is a highly profitable business as travel is significantly improving and increasing. However, you must be patient in seeing the results.

Ans: You must fulfil various requirements to open your hotel in India. These range from taking permits to ensuring the safety and security of your guests and getting multiple licences.

Ans: A small hotel business can indeed be successful. Even if some small hotels are more significant than others, those with higher RevPAR and profit margins have a superior return on investment (ROI).

Ans: To begin, you will have to identify the area where your hotel business can thrive and be successful. You must do market research, understand the competition and customer’s needs, and follow the process mentioned in this article.

Ans: As per Glassdoor salaries, a hotel owner’s average is ₹5,00,000. However, this amount can vary depending on whether the hotel is big or small and where it is located. Just like the cost to build the hotel varies depending on factors, the profit you can make will also vary.

Ans: Stars in the hotels signify the amenities and services a guest can expect. For instance, in a 5-star hotel, your guest will expect better quality services than standard hotels. It would help if you had these things taken care of while designing a hotel.

Ans: Your guests can directly reach the hotel, make an online booking using your website or app, or contact the customer service team to book a room in your hotel.

Ans: No business can be easily managed and run. Every business, including hotels, will need you to put in much hard work and dedication before you can see the results.

Know How Doctors Can Secure MSME Loans Successfully

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Hotel Business Plan

OK, so you have decided to realize your dream and become a hotel entrepreneur, so now you need to start writing your hotel business plan . You have thought out an amazing concept delivering unparalleled guest service. The next step would be to write a hotel business plan. It’s like a road map to the opening. However, as a seasoned hotel revenue management consulting and hotel management company , we have seen that this is where most entrepreneurs get stuck.

Why? Many do not have the time and don’t know what to write or how to do the financials. But until you finish your business plan, you will not be able to get the financing either. So you end up with ideas sitting in your head not realizing your dream.

Really it is not that difficult to make a good hotel business plan. It is merely a structured summary of your idea. Most people try to include everything about their hotel concept in the plan. This leads to an indigestible super novel-like bookwork, aka a mess.

The key is, knowing what to include, and what not to include in your hotel business plan. Create a clear road map for success. Excite investors rather than bore them to death like most business plans full of redundant information do. And you need to lead readers down the exact path you want.

One of the main challenges for example is that after reading the first page most businesses often don’t fully understand what the hotel is all about. For investors and lenders, it is crucial they can quickly comprehend your plan, without reading the whole document.

Hotels 101: The Basics of Business Planning

We have put together a hotel business plan template to help you on your way. Check out our approach based on 10 critical points, being:

Executive Summary
Company Analysis
Industry Analysis
Customer Analysis
Competitive Analysis
Strategic Plan
Operations Plan
Management Team
Financial Plan
Key Milestones

Steps of your Hotel Business Plan

Let’s dive into the step-by-step checklist of what your hotel business plan should look like.

These are the steps to developing your own hotel business plan. See which steps to follow to write your own hotel business plan.

Infographic by Xotels

1. Executive Summary

This first part should consist of two main parts, being:

Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a paragraph). It explains why you are in business or which huge need you are solving, that currently is not being met. For example in the case of Qbic Hotels “Moving modular hotels into under-utilized real-estate to reduce build-out cost and time.”
Objectives : What do you hope to accomplish (i.e. “Reach an annual occupancy of 90%”).

2. Company Analysis

More detailed information on the USPs (unique selling points) of your hotel concept.

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry. This acts as the foundation on which decisions such as trends and developments to follow will be based.

Streamline Your Hotel Operations

We guide hotels and resorts toward unparalleled success, positioning them as market leaders.

4. Customer Analysis

In-depth information on your target market, including geographic, demographic, socioeconomic, psychographic, and behavioural segmentation details. It can also help you to keep up to date with the latest hotel marketing trends to understand which are the types of guests who will be staying at your hotel. Explain which features will be meeting the needs and wants of these main segments when thinking of:

Basically, how will consumers answer this question ‘Why my hotel?’

Aim to break it up to the point value can be easily communicated (do not make it too overcomplicated). Think of the following examples:

Psychographics: interests, lifestyles, personality, values, opinions, and attitudes
Behavioural segmentation: purchasing behaviour, level of engagement, customer loyalty
Demographics: gender, age, marital status and education
Geographics: location (country, state, region, city)
Socio-economics

Any of the above examples of hotel segmentation can, if described well, be of great value to your business plan. An example of this could be a hotel located in a beach town, where you should be able to describe how demographics and psychographics differ from summer to winter time. Especially, since this example is typically known for lower demand in winter which you could be compensating for with the right hotel marketing strategies on hand.

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share ( SWOT analysis ). And don’t forget the most important part; what differentiates you from them. What makes you stand out?

Ask yourself: “can I add value to a specific area”, especially when it comes to hotel-dense areas like city centres or major destinations.

6. Strategic Plan

This exists of 3 parts:

Marketing : How exactly will you attract customers/guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will be the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion? In short, your hotel marketing strategy should cover everything there is to know about how to market your hotel.
Distribution : Which 3rd party channels will you use and how will you manage availability? What technology will you need?
Revenue management : What pricing and yield techniques will you use? What will your payment and cancellation policies be? Which room types will you be selling, and how will they be individually marketed? How many revenue scenarios will I create? Where can I compensate income/demand streams when necessary?

Make sure you have the capabilities to plan out a strong marketing, distribution and revenue management strategy.

Things get complicated rather fast, and choosing to outsource hotel and revenue management is likely to give you a strategic advantage, during the planning phase, and the execution of your business plans.

7. Operations Plan

How will you run your hotel? Think of the following elements:

How many staff and supervisors will you need?
What are their job descriptions/responsibilities?
What background and experience should they have?
When should they start?
What are your service standards?
Will you develop manuals?
Which supplier will you use?
How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success. Having a great team is the key to success , and stakeholders will be impressed with a thorough explanation of the added value everyone brings to the table.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ongoing business costs, operational expenses and revenue projections for the next five years. These figures should be always based on your Hotel Feasibility Study . The KPIs to look at include expected occupancy, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room).

If you are raising money , outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.

10. Key Milestones

These are the most important achievements which once they have been completed, will make your hotel more likely to succeed. Think off:

Location selection
Permits & Licenses
Build-out / Construction of the Hotel
Staffing and Training
GOP Break-even
NOI Break-even

Each time one of the key milestones is achieved, the risk of lenders or investors decreases . And once your last key milestone is reached, the chance of success is more or less guaranteed.

11. Appendix

Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

Putting Your Plan into Action

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market?

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.

Need help to Develop and Manage your Hotel Concept?

Our revenue management consulting experts at XOTELS have helped hundreds of hotels to develop and optimize their businesses.

With cost-effective implementations and best practices developed over years of experience, successful business for your boutique hotel, resort, B&B, aparthotel, hostel, or any other lodging concept for that matter.

Hope this template has helped you get inspired to start your own hotel business .

Best of luck in your endeavours!

Patrick Landman

PS. Get in touch with us if you need help developing and managing your hotel concept, and help bring your hotel to the next level with our hotel consulting services.

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Start a Hotel Business in India, How to start a Hotel Business, licenses are required to start a Hotel Business, Permits required for starting a hotel business, Ebizfiling

Posted On May 26, 2023
Posted By By Zarana Mehta
Company law
Entrepreneurship
Business Registration in India
Companies Act 2013
Hotel Business in India
How to start a Hotel Business in India

Step by Step guide on “How to start a Hotel Business in India?”

Table of Content

Introductions

Starting and running a hotel business in India necessitates a number of licences and registrations. Many licences and registrations must be obtained prior to opening the hotel and renewed while it is open. Furthermore, most licences require the hotel to follow certain rules or criteria in order to remain valid. As a result, it is critical for hotel entrepreneurs to be aware of these licences and registrations in order to run a successful hotel business. Don’t worry if you are not aware of all this, because This article will cover information on the different licenses required to start a Hotel Business in India, and “How to Start a Hotel Business in India?”

Insights on Hotel Business in India

In India, a hotel is a business that provides lodging, meals, and other visitor services. To be known as a Hotel in India, a foundation must have at least six letting rooms, at least three of which are most likely joined (ensuite) private washroom offices. Despite the fact that lodgings are classified as ‘Star’ (1-Star to 5-Star), there is no standard method for assigning these ratings, and consistency with standard necessities is intended.

Permits required for starting a hotel business in India

Fire safety Permit: A fire safety certificate or permit required by the Fire Department is required for the operation of a hotel. A fire safety certificate is typically issued if the building has implemented proper fire prevention and fire safety measures as required by the applicable fire safety rules and regulations.

Building permit for opening a Hotel Business: The Bureau of Indian Standards created the National Building Code of India to standardise building regulations across the country. All government departments, municipal bodies, and other construction agencies follow the National Building Code. According to the National Building Code, no person shall carry out any development, erect, re-erect, alter, or demolish any building, or cause the same to be done, without first obtaining a separate permit from the Authority for each such development/building. As a result, all hotels must obtain a building permit in accordance with the relevant Town Planning Act, Development Act, Municipal Act, or any other applicable statutes for layout, building plans, water supply, sewerage, drainage, electrification, and so on.

Certificate of Environmental Clearance (CEC): This permit is required by the Ministry of Environment and Forests as part of the Environmental Management Act for a specific type of project. The CEC authority conducts an assessment to rule out any negative environmental impact after completing a questionnaire. The restaurant is responsible not only for its customers’ health but also for the environment. As a result, restaurants must still apply for an Environmental Clearance Certificate.

Police license for hotels: Hotels are public places that the Police Department closely monitors. As a result, all hotels must keep a proper log of all Guests who have stayed at the hotel, follow relevant regulations, and have a valid Police Department permit. The power to licence Places of Public Entertainment held by the Commissioner or Additional Commissioner of Police usually includes a police licence for hotels.

Lift Clearance Permit: If your hotel has multiple levels and you want to operate a lift, you must first obtain permission. The Electrical Inspector issues this licence from the Labour Commissioner’s office after verifying the installation of the lift, structure, safety gear, and other products. State-specific applications are available for receiving lift clearance.

Different types of licenses required to start a Hotel Business in India

Listed are the different types of Licenses required to start a Hotel Business in India.

FSSAI License: FSSAI License is one of the main licenses required to start a Hotel Business in India, an FSSAI food business licence is required under the Food Safety and Standard Act. The FSSAI food business licence is usually issued for one year and must be renewed at the end of the year. The local FSSAI office manages the FSSAI licence for restaurants. The Central Government does not have jurisdiction over FSSAI licences for restaurants.

Business registration: It is recommended that a hotel be established under an artificial legal entity such as a corporation or LLP. By operating a company under an artificial legal entity, the promoters’ liability for the business is limited, and the business as a going concern is easily transferable to another person.

Provident Fund registration: In India, any establishment that employs more than 20 people must register with the Employee Provident Fund (PF). The PF Board manages a contributory provident fund, a pension scheme, and an insurance scheme for workers in India’s organised sector.

License for a Bar: If the hotel has a bar or serves alcohol in its restaurants, the relevant authorities will require a bar licence. Bar licences are typically issued by departments of the state government. As a result, the requirements for a bar licence differ from state to state.

Registration for GST: Prior to the implementation of GST, a restaurant bill included VAT, services tax, and a service charge. However, indirect taxes collected on the sale and purchase of goods and services in India have been absorbed by the GST Registration Limit regime of indirect taxation from 2019. Restaurants in starred hotels with daily room rates of Rs.7,500 or more will be charged 18% GST and will be eligible for ITC. Hotels with restaurants that charge less than Rs.7,500 per night will be charged 5% GST but will not be eligible for ITC (Input Tax Credit).

ESI (Employee State Insurance) Registration: ESI is an autonomous corporation of the Government of India’s Ministry of Labour and Employment. Employee’s State Insurance (ESI) registration is required in India for companies with ten or more employees. To remain in compliance with the ESI Regulations, the employer must contribute 4.75% of all employees’ wages earning Rs.15, 000 or less toward ESI employer dues. As ESI dues, the employee must contribute 1.75% of his or her wages.

How to start a Hotel Business in India?

Strategy formation: The first step in the process is to develop a business strategy that provides a snapshot of the hotel’s growth strategy for the next five years. This should include foreseeable goals, obstacles, an industry SWOT analysis, and detailed plans for meeting the set goals. In a nutshell, it should be a brief but concise summary that provides a clear outline of the entire business strategy . When you present your business plans to lenders in order to obtain a business loan, the investors and lenders usually go through the first page and decide if they want to read more, so it is also critical to lay out all the critical information up front, such as your market analysis proving the need for a new hotel and your unique skills and qualifications for meeting your objectives.

Marketing your business: Need to plan a marketing strategy that is you need to concentrate on the four P’s will be the product, price, place, and promotion. Product refers to your hotel and its services, price refers to the rates of your products and services, place refers to your hotel’s physical location as well as its website or other booking sites on which it is listed, and promotion refers to your method of attracting customers to not only stay with you once but also to return.

Business Operations: Your day-to-day operations will include booking reservations, checking in and out clients, luggage handling, housekeeping, accounting, and so on, whereas your long-term operations will include how you plan to meet your goals, such as achieving a certain rate of occupancy, adding more restaurants, and other such additional services to attract more visitors.

Management: A strong management team is the backbone of your hotel business because it will not only persuade financiers to invest money in your venture but will also ensure that operations run smoothly.

Financial Planning: Last but not least, consider how you will obtain financing for your hotel venture. Given the potential for growth in the Indian hotel sector, various lenders such as banks, NBFCs, and digital NBFCs are eager to invest in this expanding market.

Hire and Train Employees: Only if the employees play a role in the success of the hotel business in India can it be successful. You will be able to provide quality service to your guests and be an industry leader if you hire top employees at all levels. Many hotels choose to start with executive and departmental positions, which establishes the guidelines and tone. The leaders will then decide what goals they want to see in their teams and how many employees they will need. Every team must determine the roles and abilities they seek in an employee, as well as develop an action plan to find great new employees.

Bottom Line

You now understand how to open a hotel in India and the challenges that come with it. It’s a difficult process that requires a lot of dedication. If you are interested in providing hospitality and are confident in your resource availability, don’t be afraid to move forward.

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Tata Capital > Blog > Loan for Business > How to Start a Hotel Business in India

How to start a hotel business in india.

When the pandemic first hit in 2020, the hotel and tourism space was one of the first industries to be severely hit. However, it slowly regained its lost essence during the two years since then. In 2023, however, this is only poised to move even faster. As domestic tourism and international arrivals pick up, the country is again set to see high activity levels in this space. Furthermore, with the G20 happening across various cities in India throughout the year, the scope of tourism is massive.

This presents an excellent opportunity for people who want to start a hotel business in India. So if you’re thinking of how to get started, we give you tips on building a hotel business plan to begin your journey as a hotelier.

Steps to start a hotel business in India

1. create a long-term strategy.

As a hotel is a traditional business, you must determine a long-term strategy. As initial investments are high and physical assets are involved, such as real estate and furniture, breaking even can take a while. This is why your hotel business plan must be for the next five years.

The five-year plan must include several facets of your hotel operations. They can consist of elements like future goals, barriers to entry, competitor SWOT analysis, and more. This will give you an overview of what you’re trying to accomplish and help you reach out to potential investors or partners who need information.

A reliable long-term strategy sets a strong foundation for your business, while you can make tweaks depending on the current situation or market changes.

2. Dig deep into the analysis

New hotels are popping up daily in different cities in India. This is why it is a good idea to see how well you’re faring. Besides, when competing with massive hotel chains, you need to identify where and how you can make an impact.

For instance, if there are hotels scheduled to open in your area, you can analyse them to see what audiences they cater to. Would it be a business segment or leisure? Would it be a 3-star property or a 5-star one? By digging deep into analysis, you can better understand your immediate competition.

Furthermore, this allows you to create backup plans for situations where you’re entirely blocked. Thus, a deep industry analysis should be a part of your hotel business plan.

3. Know your target market

As every hotel caters to a different market segment, you must also find your target audience. Catering to a more specific audience rather than a generalised one can be beneficial, allowing you to make the most of your investments.

For instance, if you’re targeting a millennial crowd in the domestic market segment, you can identify the services or amenities they look forward to during their stay. For example, high-speed WiFi, sustainable practices, flexible workspaces, etc. By providing personalised experiences to your target market, you have a higher chance of growing your business.

4. Sort your finances

Running a hotel needs a lot of cash in the short term. Therefore, you must be able to manage your finances well. If you’re running short of working capital or need funds to start your hotel, you must look for a trustable source.

5. Recruit wisely

Your workforce is the leading driver of your business. Thus, investing in your people is one of the most significant investments you can make. As your hotel will run 24 hours, you need to account for variable pay, good scheduling, and backup staff.

6. Market your business

You must push your name out in the market as a new brand. For people to know you exist and to find you reliable, you need a solid marketing strategy for your business.

Traditional marketing involves the marketing mix which covers the different “Ps” of your business. This includes product, price, place, promotion, people, process, and physical evidence.

For your business, this can be the following:

Product - The hotel you’re marketing

Price - The different pricing segments for your rooms, your food menu, other services, etc.

Place - The location of your hotel

Promotion - The experience you plan on providing

People - Your target audience

Process - Your unique value proposition and how you plan on providing services

Physical Evidence - Speaks about the quality of your experience. For instance, the quality of the rooms you provide

7. Streamline your operations

Streamlining daily hotel operations like managing reservations, accompanying guests to their rooms, handling checkouts, etc., can help you make these processes and tasks more efficient. It also enables you to reduce operational costs, improve guest experience, and increase profitability.

A few simple ways to achieve this include using hotel management software to automate tasks, training your staff, monitoring business performance to identify areas of improvement, outsourcing non-core functions, etc.

Start your hotel business with Tata Capital

Before you plan to start a hotel, creating a step-by-step plan can significantly increase your chances of success. You can grow your hotel to new heights through careful planning and meticulous attention to detail.Tata Capital lets you achieve this dream by taking care of your finances. With fast processing times and attractive interest rates, we are your trusted partner as you embark on this new journey. Apply online for a business loan today.

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How to Start a Hotel

Advertiser Disclosure

How To Start Your Own Hotel Business

If you’re looking to start a new hotel business, you’ve come to the right place since we’re going to show you exactly how to do it. We’ll start by sharing how to open a hotel step-by-step, then answer some frequently asked questions about running a hospitality industry business and being a successful hotel owner.

Importantly, a critical step in starting a hotel is to complete your hotel’s business plan. To help you out, you should download Growthink’s Ultimate Hotel Business Plan Template here.

Download our Ultimate Business Hotel Plan Template here

15 Steps to Start a Hotel Business:

Choose the Name for Your Hotel
Develop Your Hotel Business Plan
Choose the Legal Structure for Your Hotel
Secure Startup Funding for Your Hotel (If Needed)
Find a Location to Buy or Start Building Your Hotel
Register Your Hotel with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Hotel
Buy or Lease the Right Hotel Business Equipment
Develop Your Hotel Marketing Materials
Purchase and Setup the Software Needed to Run Your Hotel
Hire and Train Your Hotel Staff
Open for Business

1. Choose the Name for Your Hotel

The first step to starting a successful hotel business is to choose your hotel’s name.

This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your hotel business:

Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
Think about marketing. Come up with a name that reflects the desired hotel identity and/or focus of your hotel.

2. Develop Your Hotel Business Plan

One of the most important steps in how to start a hotel business is to develop a hotel business plan . The process of creating your hotel business plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to potential investors for your business.

To enhance your planning process, incorporating insights from a sample hotel business plan can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your hotel business plan should include the following sections:

Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your hotel.
Company Overview – this section tells the reader about the history of your hotel and what type of hotel you operate. For example, are you a boutique hotel, a bed and breakfast, or an inn?
Industry Analysis – here you will document key information about the hotel industry. Conduct market research and document how big the industry is and what trends are affecting it.
Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, what is their income level? What amenities do they look for in a hotel? What do they find important when choosing where to stay?
Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
Product : Determine and document what products/services you will offer.
Prices : Document the prices of your products/services.
Place : Determine where your business will be located and how that location will help you increase sales.
Promotions : Determine what promotional methods you will use to attract guests to your hotel.
Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
Management Team – this section details the background of your hotel’s management team.
What startup costs will you incur?
How will your hotel make money?
What are your projected sales and expenses for the next five years?
Do you need to raise funding to launch your hotel?

3. Choose the Legal Structure for Your Hotel

Next you need to choose a legal structure for your hotel and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the hotel and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a hotel business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a hotel business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a hotel business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your hotel, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Hotel (If Needed)

In developing your hotel business plan, you might have determined that you need to raise funding to launch your business. Determining whether you want to purchase and renovate or build a new structure will majorly impact when you can open your new hotel and the amount of funding you will need.

If so, the main sources of funding for a hotel to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a hotel that they believe has high potential for growth.

5. Find a Location to Buy or Start Building

Having the right space is important for your hotel and choosing the best location can have a major impact on your business.

To find the right space, consider:

How many rooms will your hotel have?
What are the zoning requirements for hotels in your area?
Is the local market a good match for your target customers?

If you plan to build a new structure for your hotel, you will also need to work with architects to establish a timeline and determine construction costs.

6. Register Your Hotel with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your hotel’s name. This process is fairly simple and involves the following steps:

Identify and contact the bank you want to use
Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
Complete the bank’s application form and provide all relevant information
Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your hotel to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your hotel. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements for hotel, including:

Business License : A general business license is required for all businesses, including hotels. The cost of a business license varies depending on the state, county and/or city in which the hotel is located.
Occupancy Permit : An occupancy permit, also called a Certificate of Occupancy, is required before you can open your hotel to the public.
Alcohol Licenses : If you plan to serve alcohol at your hotel, you will need to obtain the appropriate license from the state in which your hotel is located.
Sales Tax License : You will need to obtain a sales tax license in order to collect sales tax from your customers.
Food Service License : If you plan to serve food at your hotel, you will need to obtain a food service license.
Fire Department Approval : Most hotels are required to have approval from the local fire department before they can open to the public.

Be sure to check local government guidelines to determine which licenses and permits hotels are required to obtain in your area.

10. Get Business Insurance for Your Hotel

The right business insurance is important to protect your new hotel. Business insurance policies that you should consider for your hotel include:

General Liability Insurance: This insurance protects your hotel business from third-party claims of bodily injury, property damage, and personal injury that occur on your premises or are caused by your business.
Workers’ Compensation Insurance: If you have employees, you may be required to have workers’ compensation insurance. This insurance protects your employees if they are injured or become ill as a result of their job.
Property Insurance: This insurance protects your hotel property from loss or damage due to fire, theft, vandalism, and other covered events.

11. Buy or Lease the Right Hotel Business Equipment

Beyond the furniture and equipment you will need in each room, opening a hotel will also require some business equipment, including:

A reservation system to take bookings
A property management system (PMS) to manage rooms and rates
A booking engine if you want to accept online bookings
Rooms keys and/or access cards
Reception furniture

12. Develop Your Hotel Business Marketing Materials

Marketing materials will be required to attract and retain customers to your hotel.

The key marketing materials you will need are as follows:

Website : Likewise, a professional hotel website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your hotel.
Logo : Spend some time developing a good logo for your hotel. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Purchase and Setup the Software Needed to Run Your Hotel

Most hotel businesses need a few types of software to run successfully.

First, you will need a PMS. This is software that helps you manage reservations, check-ins, and other aspects of your operations. Some popular options include Cloudbeds, Oracle Hospitality, and HOTELTIME.

You will also want to have a customer relationship management (CRM) system. This software helps you track interactions with customers, manage customer data, and market to potential guests. Many hotels use programs such as Experience Hotel, Oracle NetSuite, and Salesforce.

Additionally, you need to use accounting software such as Quickbooks or M3 to manage your hotel’s expenses.

Research the software that best suits your needs, purchase it, and set it up.

14. Hire & Train Your Hotel Staff

The quality of your hotel staff can make or break your business. You need to take the time to find, interview, and hire the right people.

Start by writing job descriptions for the positions you need to fill. Then, post the job openings online and in places where potential employees are likely to see them. Once you have a pool of candidates, conduct phone and in-person interviews to narrow down your choices.

Finally, once you have selected the employees you want to hire, provide training on your hotel’s policies and procedures. Additionally, give them a tour of the property and introduce them to other staff members. It helps to build out a strong sales team to prospect new business and nurture customer loyalty.

15. Open for Business

You are now ready to host a grand opening for your hotel. Make sure to include your grand opening event in your marketing plan and promote your hotel launch to the right target audience.

If you follow the steps above, you should be in a great position to build a successful business and know everything you need about how to start a hotel business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Hotel Business Plan in 1 Day!

How to open a hotel faqs, is it hard to start a hotel.

Starting any business has its challenges and opening a hotel does require some planning and preparation. The biggest challenges in owning a hotel are securing funding for your new hotel, finding a great location to buy or build, and setting up systems that help your hotel achieve operational efficiency.

As with starting any business, having a good business idea, doing market research, and getting support from experts in the industry increase your chance of success.

How Can I Own a Hotel With No Experience?

If you have no experience in the hotel industry, you will need to find a good hotel management company. A hotel management company can help you with all aspects of starting and running your hotel. They will also be able to provide you with the necessary training.

What Types of Hotels Are Most Profitable?

There is no one-size-fits-all answer to this question. The type of hotel that is most profitable will depend on the location of your hotel and what is of value to the market in that area. A boutique hotel might be a huge success in a small city, while a family-friendly hotel could make more money when placed near a theme park. It is important to do market research to determine which type of hotel can be a profitable business in your area.

How Much Does It Cost To Start a Hotel?

Again, there is no one-size-fits-all answer to this question. The cost of starting a hotel will depend on a number of factors, such as the location of your hotel, the type of hotel, and the level of service you offer. You will also have different upfront costs depending on whether you are building a new hotel or purchasing an existing structure.

With regards to building costs or buying an existing property, this varies tremendously based on the type of hotel (e.g., budget vs luxury) and hotel size (e.g., 5 rooms vs 500 rooms).

How Does a Hotel Make Money?

A hotel makes money by charging guests for the use of the hotel's facilities. The amount charged will depend on the type of hotel, the location, and the level of service offered. Beyond charging for guest rooms, hotels may also make money from additional amenities, such as in-house restaurants, room service, and high-speed internet access.

Is Owning a Hotel Profitable?

Owning a hotel business can be profitable, but the amount of profit is highly-dependent on a number of factors, such as the location of your hotel. You can improve the profitability of your hotel by offering a higher level of service, attracting more guests, and keeping your expenses low.

How Much Does a Hotel Owner Make?

Hotel owners, operators and executives receive varied pay amounts based on the success of their hotel. According to Glassdoor, the typical Starwood Hotels & Resorts Vice President salary is $244,472, which is 45% above the national average.

What Are the Key Financial Metrics and Costs in the Hotel Market?

The key financial metrics in the hotel market are as follows:

Industry profit is measured as earnings before interest and taxes. Industry profits have averaged 15.5% of sales in recent years.

The industry’s major expenses are purchases and cost of sales, such as bedding and room supplies. Many hotels also provide meals and liquor, either in individual rooms or in separate restaurants or dining areas.

Last year, purchases were estimated to account for 29.9% of an average operator’s revenue.

Labor is required in many aspects of hotel management, from front-of-house activities, such as front desk, concierge and related activities, to all back-of-house activities, including general management, accounting, marketing, room cleaning and servicing the kitchens, bars and restaurants.

Many hotel jobs have a low skill and training requirement, and employees can be hired on a part-time or casual basis. Because of this practice, many hotels have high staff turnover.

Therefore, there is a constant need for recruitment and training, which can be costly. Some hotel owners and operators have outsourced part of their staff services to specialist staff-recruitment agencies to lower recruitment costs.

Last year, industry wages accounted for approximately 25.7% of total industry revenue.

Rent and Utilities

Rent and utilities on average comprise 7.6% of hotel revenue.

Other Expenses

Marketing expenses and royalty fees are another significant cost for those industry participants that operate on a franchise basis. Franchisees typically pay an annual fee of 4.0% to 6.0% of total revenue.

Other major operational expenses include repairs and maintenance, promotional costs, commission paid to agents, bookings and internet fees, accounting and legal costs, motor vehicle expenses, stationery and printing, insurance and other administrative and overhead costs.

Why Do Hotels Fail?

Hotels can fail for a number of reasons, including high expenses and low occupancy rates. Hotels can also fail due when owners misunderstand the market in an area and target the wrong customers or fail to do adequate research into hotel industry trends that impact their business.

Often, hotels begin to struggle due to poor management decisions that negatively impact the guest experience. Closely monitoring your spending and making sure your staff is performing well both go a long way toward making your hotel succeed.

How Big Is the Hotel Industry?

According to IbisWorld, there are 74,372 hotels, and the hotel industry generated $166.5 billion in revenue in the United States alone last year. This represents an annual growth rate of 4.7% over the past 5 years.

Industry profits were $26.0 billion, and wages paid to hotel employees totaled $42.7 billion.

What Are the Key Segments of the Hotel Market?

A hotel is an establishment that provides lodging and, often times, meals and other services for travelers and other paying guests. A motel, on the other hand, provides lodging for motorists in rooms usually having direct access to an open parking area.

A particular hotel or motel can be classified by a number of characteristics, including whether it provides full or limited service, whether or not it is located in a metropolitan area, the state or region in which it is located, its price or rate level, the number of rooms, and whether it is independent or part of a chain operation.

Hotels and motels can also be segmented by room price rates. The establishments with room rates in the highest 30 percentile that are located in local or metropolitan markets are classified as upscale or luxury. The middle 30 percentile is classified as mid-priced, and the lowest 40 percentile as either economy or budget.

Overall, sales from hotels account for 87.4% of industry revenue and 82.0% of industry employment, though they account for only 44.0% of industry establishments.

Hotels that consist of 25 or more rooms provide 83.6% of industry revenue (with 62.7% of industry revenue coming from guest room rentals, 12.5% coming from food and alcohol sales, 4.2% coming from conference and meeting rooms and 4.2% coming from other charges), while hotels that offer fewer than 25 rooms only constitute 3.8% of industry revenue.

Motels provide about 12.6% of industry revenue. The relative proportion of revenue from each of these segments has been relatively stable over the past five years, although motels experienced some growth at the expense of higher-priced hotels during the recession.

What External Factors Affect the Hotel Market?

A number of factors affect the performance of the hotel industry. These drivers include:

Domestic Trips By US Residents : Trends in domestic travel, especially for business travellers, and the total nights spent away from home directly affect demand for accommodation. As the number of trips made by US citizens rises, demand for hotels and motels to house them increases.
Consumer Confidence Index : Changes in consumer confidence influence decisions that individuals make concerning expenditure on entertainment and traveling, particularly during a recession.
Consumer Spending : Consumer spending levels have a direct effect on travel demand. When consumers are spending more overall, they are more likely to spend some of their money on travel and accommodations.
Inbound Trips By Non-US Residents : Trends in international visitor arrivals and their lengths of stay influence demand for accommodation. A rise in inbound trips positively affects demand for hotels and motels.

Who Are the Key Competitors in the Hotel Market?

As specified above, there are 74,372 hotels in the United States.

The market leaders (in terms of market share) include Hilton Worldwide Holdings Inc. (13.7%), Marriott

International Inc. (13.5%) and InterContinental Hotels Group PLC (7.5%).

The rest of the market is comprised of many smaller players.

Who Stays in Hotels?

Recent demographics show that totel guests are comprised of:

Domestic leisure travelers: 48.5%
Business travelers: 24.0%
International leisure travelers: 14.0%
Meetings, events and incentive travelers: 13.5%

What Are the Keys to Launching a Successful Hotel?

Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable financial resources, and a customer service mindset.

1) Location and Opportunity

The location for your hotel is highly linked with the opportunity that you feel there is for your hotel. In the right location, where competitors are not fulfilling all customer needs, a hotel can thrive. However, in a beautiful neighborhood that happens to have heavy competition from existing hotels, success may not be so forthcoming. Likewise, if the neighborhood leaves too much to be desired, you may not be able to price the rooms low enough to encourage travelers to stay at your hotel, even if you are within walking distance of key attractions.

2) Strategy

The next step is to know how customers will answer the question “why my hotel?” How will you tailor your services to the customers you want to attract, whether they are families with kids, couples on romantic vacations, businesspeople, or international tourists? Consider the combination of amenities, atmosphere, location, and services that will be right for your customers. Always keep in mind that strategy means making tradeoffs – it is almost impossible to be everything to everyone and succeed. You might have to forgo a certain customer target market in order to make your service offering perfect for your most desired customers.

3) Planning

A hotel business plan is necessary not only for you to think through how you will take on the opportunity, but for you to convince any investor or lender that you have the ability to do so. No savvy investor will be attracted by a lack of planning. There is no excuse to not create a plan with the wealth of information available on writing business plans and even business plan templates tailored to the hotel business sector.

4) Fundraising

Whether you buy an existing hotel, build one from scratch, or renovate a building into a hotel, you will need millions of dollars to invest. Assuming you do not have this money, you will need to seek bank loans and/or angel investment in your hotel. As you will be working with considerable assets, dependable and experienced legal and accounting help is a must as you create deals with investors.

5) Hospitality Mindset

Finally, you must have an ingrained sense of how you want your guests to be treated so that you can instill this mindset in your top management and they can, in turn, teach this to the staff. Staying at a hotel can be stressful and uncomfortable, and guests demand the highest attention to their needs or they will have no problem complaining loudly and publicly. If employees sense you have higher motives than customer satisfaction, customer service may fall by the wayside and your hotel business may fail or never take off in the first place.

The first step to starting a hotel is to develop your hotel business plan . Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.

Where Can I Download a Hotel Business Plan PDF?

You can download our hotel business plan PDF template here. This is a business plan template you can use in PDF format.

Additional Resources in the Hotel Market

For additional information on the hotel market, consider these industry resources:

American Hotel & Lodging Association: ahla.com
Hospitality Net: hospitalitynet.org
Hotel Mavericks: www.hotelmavericks.com

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consultants can create your business plan for you.

Start Hotel Business in India: Advantages, Scope

Radha Dhaked | May 3, 2022 May 3, 2022 | Company Formation

The travel and tourism business has gained tremendous traction during the last decade. With an increasing number of people traveling not just inside the country, but also worldwide for vacation and business purposes, the hotel sector has experienced a significant increase in the tourism business.

In addition, the travel and tourism industry in India makes a significant contribution to the

Country’s gross domestic product. Demand for hotel rooms is expected to rise by 6% annually, based on existing trends.

Supply, on the other hand, is increasing at a 3% annual rate. As a result, there is a significant opportunity for someone wishing to establish a new business in the hotel industry.

If you wish to start hotel business in India, there are certain things that you should know. In this article, you will know about the important information to start hotel business in India.

Steps to start hotel business in India

Locate the need in the market

Learning about how to establish a hotel business requires first and foremost familiarizing oneself with the global and local hospitality industries.

Set aside some time each day or week to remain up to date on the latest hotel news.

Researching the market for your hotel can only begin when you’ve gained some experience with it.

If you find that there’s a relevant need or demand in the market, then you should make a business plan.

Make a Business Plan and Project Report

Identifying the unmet demands of the market necessitates devising a creative solution to bridge the gap.

With the right technique, you may make a name for yourself in the industry and gain market share by offering a product or service that no one else can.

Hence, you should make a business plan and project report to analyze your business goals, strengths, competition, and much more.

Business Plan and Project Report are also essential to get business loans . You also can use Business Plan to get venture capital.

Get the Relevant Licenses and Registrations to Start Hotel Business in India

For every business, there are some mandatory and beneficial registrations that they must have. The same goes for the Hotel Industry. For hotel business, there are a number of legal, regulatory, and insurance criteria that must be met. Hence, the following are some of the registrations that you must have to start hotel business in India.

Online Company Registration or Company Formation
GST Registration
FSSAI Registration
ESI Registration
PF Registration
Fire Safety Permit
Valid Permit from the Police
Shop and Establishment Registration
Bar License
Building Permit
Trade License

It’s not the most exciting part of working in the hotel business, but it’s necessary. Hence, you must consult legal, financial, and operational teams to identify the requirements for your location.

You can also contact our business advisors to get the mandatory registrations to start hotel business in India.

Also, it’s best that you apply for these services online for a faster and smoother experience.

Hire the Workforce and Train them

Businesses are only as good as their employees. By recruiting exceptional personnel at all levels, you’ll position yourself to provide value to your visitors and establish a market leadership position.

Many hotels prefer to hire for executive and departmental jobs first, which sets the tone and direction of the company.

Having identified their desired outcomes for their teams, these executives may determine how many employees they require. Each team should define the positions and abilities they’re searching for, as well as devise a strategy for attracting and retaining top talent.

Your application and interview processes should be straightforward so that you don’t cause any unnecessary stress for your potential employees. As a result, you’ll be able to find employees who share your point of view.

However, you can also save money and energy if you outsource some jobs. For example, you can outsource Bookkeeping and Accounting , Website Development , GST Return Filing , Income Tax Return Filing , TDS Return Filing , Logo Designing. etc.

Outsourcing these tasks to a professional team of experts can save your time, money, as well as energy, and you can focus on your core business.

Advantages to start hotel business in India

It’s hardly a surprise that the hotel business is expanding.
Operating the hotel business is also a great way to earn a decent amount of money.
When you work in the hospitality sector, you’ll be exposed to a wide variety of individuals from all walks of life. Service-oriented companies, such as hotels and restaurants, place an emphasis on building relationships with their customers.
Additionally, it’s worth noting that the hotel business is known for its laid-back atmosphere. Even though the job might be difficult at times, the atmosphere here is more laid-back.

In conclusion, the above mentioned is the brief overview that you must know to start hotel business in India. If you wish to know more or have any other queries related to starting any other business, you may contact our team of experts.

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Moreover, If you want any other guidance relating to Company Formation . Please feel free to talk to our business advisors at 8881-069-069 .

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How to Start a Homestay Business If you love hosting and have spare space in your house, monetise it by starting a bed and breakfast business

By Shipra Singh Jan 6, 2020

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

In 2018, Shivam Chaudhary enlisted a spare bedroom in his Dehradun flat on AirBnb to make some extra money. Two years later, the entire three-BHK apartment is on the online marketplace platform with each room priced at INR 1,400 per night. "Initial income from one room listing was 5 times more than what I had anticipated. The potential business model prompted me to list the entire apartment," says Chaudhary.

Homestays, bed and breakfast (B&B) or guesthouses—the concept of B&B lodging is fast becoming a popular business model for homeowners who have extra space in their property to spare. As of February 2019, Airbnb alone has about 45,000 listings in India, as announced by the platform's co-founder and chief strategy officer, Nathan Blecharczyk during a summit.

The concept of homestays is quite simple. You rent out your unused property for short spans to guests travelling in your city. It is different than a hotel as you as a host share the house with your guest and do not have to provide round the clock room or restaurant service, as is the case with a hotel. It does not require heavy infrastructure either and, hence is easy on your pocket.

So, if you love hosting and want to start your own homestay business, here's a guide on how to go about it.

Also Read: 20 Business Ideas for Stay-at-Home Parents

List on Online Platforms

The easiest way to start is to list your house on platforms such as Airbnb, Booking.com , Trip Advisor and Homestays.com. Alternatively, you can also post ads directly on Facebook, Instagram and Google to save on the commission charged on such platforms.

As part of the signing up process, you need to upload identification and property-related documents. You don't have to pay anything for listing yourself on these portals but they charge a commission of 3-6 per cent for each booking.

There are no restrictions on how much space can be let out. From a single room to an entire floor to a villa, you can let out as much space as you want. Take the case of Goa-based couple Latika Singh and Rahul Singh, who are full-time hosts to a three-story homestay. The duo has let out two floors in their house, keeping the ground floor for their use.

Platforms such as Airbnb let you set your own rate. To begin with, check prices of listings in your area to get an idea about how much can you charge for your space.

Rates are not sacrosanct and can be changed by the owner depending on demand and season. Singhs lower price of their homestay during May-August, as that's the off season in Goa. Whereas during Christmas and New Year week, they mark-up their prices by 15-20 per cent because of higher demand due to the Sunburn festival.

Chaudhary, on the contrary, doesn't tinker much with his apartment's rates. "I get bookings all year round as Dehradun is both a travel destination and a business hub. Bookings drop barely 10-15 per cent during winters, so I don't usually reset price of my listings," says the 30-year-old businessman.

If you need the space for your personal use, you can block those dates on the platforms in advance.

Most importantly, before you enlist, figure out the permissions, registration process and other legal requirements of a homestay business in your city. The concept of Airbnb in India is fairly new and so there are no defined rules on whether a homestay qualifies as a commercial business or not. The rules vary across states so it is recommended that you visit the nearest district tourism office to understand the regulations.

Costs of Setting up

Setting up a homestay can cost you anywhere between INR 30,000-50,000. Here's a breakdown of all the costs involved:

One-time Costs

Furnishing: To begin with, you will have to set up the space with basic furniture such as bed, table, a pack table, a chair and linens like curtains, bed sheet, bed cover, etc. Furnishing can cost you INR 10,00015,000, depending on how much you want to decorate your space.
Basic amenities : Water kettle, towels, basic cutlery are basic amenities, which is another INR 3,0004,000.
Optional amenities: Additional facilities such as airconditioner, cooler, geyser, air-purifiers, etc., can further cost you upwards of INR 20,000.

Recurring Monthly Costs

Bills: Electricity and Internet bills will be INR 5,0006,000.
Cleaning: Laundry (bedsheets, towels) and cleaning is another INR 6,0007,000.
Grocery and Utilities : Groceries for breakfast and basic items to include in the room such as toiletries, tea and coffee pouches, milk pouches, salt and pepper, etc., will cost you INR 1,5002,000 per month.
Staff: You can hire an assistant for help with smaller tasks or managing the homestay. For instance, Chaudhary has hired a fulltime assistant who hosts guests as he himself doesn't stay in the apartment. He is paid INR 15,000.

Earning Potential

Income from homestay business will typically depend on how much space you have let out, amenities provided and location of your house. A single room with all basic amenities can be priced anywhere between INR 1,500-2,000.

Bigger spaces like a villa or an entire floor will obviously be priced higher, but gets fewer bookings compared to single rooms. "We have two listings—two rooms on second floor for INR 1,700 each and third floor apartment for INR 3,800. But, we get more bookings for single rooms," points out Latika. During full season, she gets an average 20 bookings every month for the bedrooms and 10 bookings for entire floor, earning the Singhs INR 40,000-80,000 a month.

If your property is close to tourist spots and gives easy access to public transport, you can price it higher. Also, added amenities such as air-conditioning, running hot water, air-purifier and a functional kitchen usually attract more tourists as opposed to a basic lodging option.

Delhi-based Anmol Bagga has installed air-purifiers in his homestay to tackle air pollution. "I have seen an increase in bookings from foreign tourists ever since I've installed air purifiers," says Bagga, who has listed a two-BHK on Airbnb for INR 3,200 per night.

To give you a ballpark figure, an average booking of 15 days per month of a single room can fetch you INR 18,000-20,000, after removing operational costs and commission of online platforms.

Your can have lean periods depending on the tourist season of your city. For instance, if you are in Rajasthan, you will get very few guests during summers. On the other hand, homestays in Shimla will get few travelers during winters.

For this reason, if your sole income depends on this business be prepared to plan your yearly finances accordingly.

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Nepalese billionaire, tata group to expand hotel footprint across india, himalayas.

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The lounge at dusk at CG Hospitality's Mahua Kothi, a safari lodge on the edge of India's Baghavahn ... [+] National Park.

A joint venture between Nepalese billionaire Binod Chaudhary ’s CG Hospitality and Tata Group’s Indian Hotels plans to expand their hotel footprint across the Indian subcontinent and the Himalayas amid a travel boom.

Through the partnership, CG Hospitality has invested over 12.5 billion rupees ($150 million) to develop 11 hotels under the Ekyam platform, which focuses on niche adventure and wildlife destinations, the partners said in a statement. Next year, 14 new hotels are slated to open under this platform, Rahul Chaudhary, managing director of CG Hospitality and son of the group’s founder, said.

Once the new hotels are completed, Ekyam will have a total of 2,500 rooms across 25 locations, including existing Taj resorts in Dubai, India, Maldives, Nepal and Sri Lanka.

“This expansion underscores the confidence and trust we place in Indian Hotels’ century old legacy which is globally recognised as the benchmark in Indian hospitality,” Binod Chaudhary, founder and chairman of CG Corp Global said in the statement.

The partnership with Indian Hotels started when CG Hospitality invested in Taj Exotica Resort & Spa and Taj Coral Reef in Maldives and Taj Samudra in Colombo more than two decades ago. The tie-up has since expanded across five countries including Dubai, India and Nepal.

CG Hospitality owns hotels under other brands such as Fern Hotels in India, Jetwing Hotels & Ceylon Hotels Group in Sri Lanka, and Fairmont Hotels in Kenya. Its portfolio currently has over 178 properties with over 10,000 rooms in 12 countries, including The Farm, a wellness resort, in San Benito, Batangas, south of Manila.

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Chaudhary is the controlling shareholder of unlisted CG Corp Global and is Nepal's sole billionaire with a net worth of $1.8 billion. He also holds in privately held stakes in Nepal's Nabil Bank and CG Foods, maker of the popular Wai Wai noodles. The tycoon plans to list several of his companies by 2026.

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What Do Indian Tourists Want? We Asked 5 Hotel Brands – India Report

Bulbul Dhawan , Skift

May 8th, 2024 at 11:00 PM EDT

Due to close proximity, the nations of Nepal, Sri Lanka, and Bhutan witness significant tourism from India. With preferences of Indian travelers changing, boutique properties are reaching out with diverse offerings to attract this tourism segment.

Bulbul Dhawan

The Skift India Newsletter is your go-to platform for all news related to travel, tourism, airlines, and hospitality in India.

India is a key source market for the neighboring countries of Nepal, Bhutan, and Sri Lanka. In February, India was the biggest source market for Nepal, accounting for more than 25% of foreign tourist arrivals in the country.

For Bhutan, Indians accounted for 60% of the total international tourists in the first three months of 2024. The country is expecting 150,000 Indian tourists this year, more than double that of 2023.

In Sri Lanka, the number of tourists from India in the island nation increased by over 100% in January.

What are they doing to keep the growth going? Skift caught up with some boutique hotel brands from these three countries that were in India for a trade event.

Here’s what we learned:

Amrit Rajaratnam, founder of Galle Fort Hotel, Sri Lanka: Indian travelers are seeking authentic, experiential, and unique experiences, Rajaratnam said.

“They seek bespoke luxury experiences and are inclined to invest in shorter, luxe getaways as opposed to longer trips. They want unique, immersive travel experiences, which are family friendly and exclusive.” Rajaratnam added that Indian travelers prefer privacy, often booking entire properties for their group travels.

Khin Omar Win , owner of Gangtey Lodge, Bhutan: “Discerning Indian travelers are more mindful, curious, and adventurous. They seek cultural immersion. The biggest trend we have experienced is the shift in interest from classic travel to developed destinations to more immersive, nature-focused travel and soft adventure,” Win said.

She added that pre-Covid, her property received very little interest from the Indian market but this has significantly increased post-pandemic.

Nilanka Martinus, managing director of Mosvold Boutique Hotels, Sri Lanka : “Indian travelers are looking for unique boutique luxury experiences, coupled with a discerning palate for great food, particularly with a strong preference for vegetarian options. They highly value personalized attention and excellent service standards.”

The Indian market, particularly the middle and upper-middle class, is increasingly inclined to splurge on luxurious travel experiences and boutique hotels and have moved away from package tours, Martinus shared.

Prabina KC Chhetri, sales and marketing director of Dwarika’s Group of Hotels and Resorts, Nepal: She said that apart from experiential tours, Indians are also inclined towards holistic well-being, spiritual and cultural experiences, and sustainable travel.

Hashan Cooray, managing director of Jetwing Hotels, Sri Lanka: Jetwing Hotels has been witnessing increased interest in properties that offer agricultural experiences and tea estate experiences. “Luxury wellness retreats are seeing increased demand from Indian travelers, where they look to stay for a week or more, immersing themselves in daily physical activities, health routines and treatments. Wildlife tours in Yala, Kumana as well as in the Sigiriya region are also gaining popularity,” said Cooray.

Thailand Extends Visa Waiver for Indians Until November 11

Thailand has extended the visa-free arrival arrangement for Indian travelers till November 11. The Thai cabinet on Tuesday approved a plan to extend the visa exemption for six more months.

In November last year, Thailand decided to grant visa-free entry to Indians and Taiwanese citizens from November 10 till May this year. This visa waiver would have ended on Friday.

Travelers from the two countries would be allowed to stay without a visa in Thailand for a period not extending 30 days.

In the first four months of 2024, Thailand recorded over 12 million visitor arrivals, representing a 39% increase over the same period in 2023. More than 550,000 Indians visited Thailand during this period. Thailand expects the number of visitor arrivals from India to reach 1.7 million this year .

India is one of the most important source markets for Thailand and is also the fastest-growing. In 2023, over 1.6 million Indian travelers visited Thailand , making the country the fourth-largest source market for Thailand. These tourists spent more than THB 63 billion ($1.7 billion).

Sri Lanka has also renewed its visa-free entry for visitors from India, China, Russia, Japan, Malaysia, Thailand, and Indonesia. The visa-free entry will allow these visitors to stay in Sri Lanka for 30 days.

IHG Opens India’s First Voco Hotel

IHG Hotels and Resorts has opened India’s first voco hotel – voco Jim Corbett. The 70-key resort marks the introduction of IHG’s seventh brand in India. The hotel chain has four other voco hotels in its India pipeline – in Mumbai, Amritsar, Gurugram, and Goa.

Last month, the company announced its plans to double its operating portfolio in India , aiming to have 100 trading hotels in the country by 2029. In 2023, the hotel chain’s occupancy rate surpassed pre-Covid levels significantly, it said in a statement.

Post the 2023 performance, the company has ambitious expansion plans for India. IHG’s Southwest Asia managing director Sudeep Jain said, “We are on track to record another successful year, fueling our growth ambitions in the country.”

80% of Indian Travelers Prefer Domestic Destinations

Nearly 80% of the Indian travelers prefer domestic destinations as opposed to international ones, shared travel advisory firm VIDEC’s CEO Virendra Jain at the Arabian Travel Mart 2024. While speaking about India’s rapid emergence as a crucial source market for global tourism, Jain shared the characteristics and behaviors of Indian travelers.

As many as 59% travelers in India prefer short weekend trips. “The primary motivator for these trips is the need for a break from daily life, with 33% of travelers seeking leisure escapes.”

He also asserted the need to understand the trends and behaviors among Indian travelers. “Coupled with India’s rising digital proficiency and infrastructural enhancements, these trends are shaping India into a dynamic source market for global tourism, necessitating targeted engagement strategies to capitalize on this growth,” he said.

Correction: This article has been updated to correct the pronoun for Khin Omar Win, owner of Gangtey Lodge in Bhutan.

Skift India Report

The Skift India Report is your go-to newsletter for all news related to travel, tourism, airlines, and hospitality in India.

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Tags: arabian travel market , bhutan , boutique hotels , hotels , ihg , india , india outbound , india travel , international tourism , international travel , nepal , skift india report , sri lanka , thailand , tourism , tourism authority of thailand , Travel Trends , visa waiver , voco

Photo credit: Bhutan, Sri Lanka, and Nepal are focusing on India to achieve their ambitious tourism targets. Avinash Patel / Pexels

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India regulator plans tighter rules for listing of small businesses: sources

INDIA’S markets regulator and exchanges will tighten rules for public offers of small and medium enterprises (SMEs), according to two sources, after complaints of misuse of a separate listing platform introduced in 2012 to enable small businesses to access the capital markets.

The regulator, the Securities and Exchange Board of India (Sebi), is considering raising the minimum size of such public offers to 300 million Indian rupees (S$4.9 million) to 500 million Indian rupees, said the two sources who are directly familiar with the discussions.

The new rules are slated to be issued later this year after the regulator and exchanges consult stakeholders, they said.

Currently, there is no minimum issue size prescribed but companies listing on the platform are required to have a post issue capital base of 250 million rupees.

“A minimum offer size will ensure that serious companies are accessing the capital markets and in turn safeguard the interest of investors,” said one of the two sources.

The sources declined to be identified as they were not authorised to speak to the media.

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The markets regulator and exchanges, who implement the policies on behalf of the regulator, did not reply to requests for comment.

Buoyed by India’s surging equity markets, public issues by SMEs soared in the financial year ending March 2024 to 205 companies raising 60 billion rupees compared to the 125 firms that raised 22 billion rupees in the previous year, according to Prime Database, a capital markets data provider.

SMEs in India are defined as companies with an annual turnover of 50 million to 2.5 billion rupees.

Some of these issues were subscribed 500 to 1000 times, raising concerns around misuse of the platform, the sources said.

Alongside introducing a minimum issue size, these companies will also be asked to make more disclosures, the sources said.

“The merchant bankers will be asked to make more upfront disclosures of objects of the issue, financials of the issuer and risk factors,” said the first source.

Earlier this year, Sebi chairperson Madhabi Puri Buch said some issuers and bankers were misusing the framework provided for SME listing. Sebi is collecting evidence following complaints of price manipulation in the segment, Buch said.

In the past week, Sebi barred three SME companies from capital markets on charges of misusing funds raised via public offers. These companies used funds for purposes other than those specified, misstated facts in offer documents and alleged manipulated financial statements, the regulator said.

Sebi said in one of its orders that retail investors need to exercise a certain level of due diligence while investing in SME companies and not be swayed by “seemingly attractive returns that may quickly come their way”. REUTERS

Fraud concerns raise red flags for India’s booming tiny IPOs
India's markets regulator puts seven Adani companies on notice for violations
India may review rule for funds targeting overheated small-cap stocks

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Pakistan PM unveils broader plan to sell most state-owned firms

Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, prime minister shehbaz sharif said on tuesday, broadening its initial plans to sell only loss-making state firms to shore up its shaky finances..

Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif said on Tuesday, broadening its initial plans to sell only loss-making state firms to shore up its shaky finances. The announcement came after Sharif headed a review meeting of the privatisation process of loss-making state enterprises (SOEs), according to a statement from his office, which discussed a roadmap for privatisation from 2024 to 2029.

"All of the state-owned enterprises will be privatised whether they are in profit or in losses," Sharif said, adding that offloading the companies would save taxpayers' money. The statement didn't clarify which sectors would be deemed strategic and non-strategic.

The announcement came a day after an International Monetary Fund mission opened talks in Islamabad for a new long-term Extended Fund Facility, following Pakistan's completion of a $3 billion standby arrangement last month, which averted a sovereign debt default last summer. Privatisation of loss-making SOEs has long been on the IMF's list of recommendations for Pakistan, which is struggling with a high fiscal shortfall and a huge external financing gap. Foreign exchange reserves are hardly enough to meet a couple of months of controlled imports.

The IMF says SOEs in Pakistan hold sizable assets in comparison with most Middle East countries, at 44 percent of GDP in 2019, yet their share of employment in the economy is relatively low. It estimates almost half of the SOEs operated at a loss in 2019. PATCHY SUCCESS SO FAR

Past privatisation drives have been patchy, mainly due to a lack of political will, market watchers say. Any organisation that is involved in purely commercial work can't be strategic by its very nature, which means there can't be any strategic commercial SOEs, former privatisation minister Fawad Hasan Fawad told Reuters on Tuesday.

"So to me there are really no strategic SOEs," he said. "The sooner we get rid of them the better. But this isn't the first time we have heard a PM say this and this may not be the last till these words are translated into a strategic action plan and implemented."

Islamabad has for years been pumping billions of dollars into cash-bleeding SOEs to keep them afloat, including one of the largest loss-making enterprises Pakistan International Airline, which is in its final phase of being sold off, with a deadline later this week to seek expressions of interest from potential buyers. Pakistan has listed 25 entities and assets on its privatisation list, including the PIA. A majority of the entities are in the power sector, including four power plants, two of which are over 1,200MWs, as well as 10 generation and distribution companies.

The list also includes the valuable Roosevelt hotel in New York's Manhattan and two insurance companies. The pre-qualification process for PIA's selloff will be completed by end-May, the privatisation ministry told Tuesday's meeting, adding discussions were underway to sell the airline-owned Roosevelt Hotel in New York.

It said a government-to-government transaction on First Women Bank Ltd was being discussed with the United Arab Emirates, and added that power distribution companies had also been included in the privatisation plan for 2024-2029. "The loss-making SOEs should be privatised on a priority basis," Sharif said.

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DBS Bank India plans to double small business book in 3 years

DBS Bank India managing director and head of institutional banking, Rajat Verma, said that the asset quality of its small business book is “very good, the default level is low despite growing quite rapidly”.

MUMBAI : Having achieved its target of a billion-dollar book in the small business segment, DBS Bank India now plans to double its exposure in three years, a senior banker said, underscoring the lender’s optimism around a sector that contributes nearly 30% to the gross domestic product (GDP) and is a significant job creator.

“We are growing our SME (small and medium enterprise) book and we have added new products. Like startups, it is not only a lending business and there is a liability side of the business too," Rajat Verma, managing director and head of institutional banking at DBS Bank India said in an interview.

Its SME business revenue has increased to 20% of its institutional banking revenue in Q1 2024, from 19% in Q1 2023. These percentages, however, exclude the offshore institutional book.

Verma believes the current growth trajectory of its small business segment, which he says is “in the 30s", should continue at the current level.

“I am a great fan of a consistent growth rate over a period of time. It is not good to do 40% one year and then 10% the other year but 20-25% consistently; the book could double in the next three years."

Read This: Startups, SMEs increasingly covet so-called fractional CXOs

Launched in 2019, DBS Bank India is a wholly-owned subsidiary of DBS Bank Ltd, Singapore. India allows foreign banks to operate either as a branch or a wholly-owned subsidiary of the parent. The other bank to set up a local subsidiary was SBM Bank India, while the rest operate as branches.

“We have touched the $1 billion (fund and non fund based SME exposures) mark in the SME business and we think it is one of the businesses which will drive our growth. This also includes loans given to startups," said Verma who joined the bank in 2023 from HSBC India.

Verma noted that the asset quality of its small business book is “very good, the default level is low despite growing quite rapidly."

The bank’s overall gross NPA ratio stood at 5.61% as on 31 March 2023, down from 9.5% in the previous financial year, according to its FY23 annual report.

According to him, while a conglomerate might have 30-40 or even 50 banks in a consortium, depending on the type of conglomerate and how much debt they need, an SME would have two or three at most.

“So, the choice of banking partner is a critical one, and likewise for the bank too. We are focused on the SME space and it is a business that is growing fast while the quality of assets remains healthy," he said.

Data shows that the quality of small business loans has improved for the entire banking sector.

The gross non-performing asset (NPA) ratio in micro, small and medium enterprises (MSME) loans for banks declined to 4.7% of outstanding loans as of 30 September, from 6.8% in March 2023 and 7.7% in September 2022, according to the latest Financial Stability Report released by the Reserve Bank of India (RBI) in December.

Aggregate bank loans to MSMEs grew 29% to ₹ 10 trillion in 2023-24, according to a separate data set from RBI.

More Here: SME IPOs are shining, but experts advise caution

Verma said that one reason for the sector's strong asset quality metrics is the reduction in information asymmetry. “These include the data available from credit bureaus, data on the founders, GST (Goods and Services Tax) returns, besides others."

According to Verma, DBS Bank India’s strategy is to partner with these companies for the long term. “I am also interested in making sure that we onboard clients who will stay with us five or 10 years down the road," he said, adding that the bank is interested in SMEs, midcaps, and large caps.

“So SME is a feeder to the mid cap. The mid cap is the feed to the large cap."

Meanwhile, the bank’s environmental, social, and governance (ESG) financing book had crossed SGD 1 billion (about $740 million) in 2023. While it had planned to grow from that base by 60% by the end of calendar year 2024, it now expects to exceed this substantially.

Also Read: India's private capex not secular across industries, says HSBC's Malhotra

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How to Start a Small Hotel Business in India: Business Plan, License
In case you missed it: How to Start a Tiffin Service Center in India: Business Plan, Setup Cost, Profit Margin, and Requirements Image Source. The average wage for a general manager in a small hotel is Rs 25,000 per month, while the head of the housekeeping salary is Rs 20,000.
How To Start A Hotel Business In India
Depending on the size of your hotel and the number of rooms that you will have in your hotel, you will have to determine the area of your hotel business. A hotel with 80 to 100 rooms which is considered as midsized requires the approximate area of 10000 to 50000 square feet. This is a rough approximation, you will have to plan accordingly.
How To Start A Hotel Business In India
Steps to Start a Hotel Business. Prepare a Strategy. This should include your goals, obstacles, and plans to achieve the desired goals. When your business plan is to be presented for getting a loan, the investors and lenders usually go through the first page and it's upon them to read further.
A Guide to Starting a Hotel Business in India
Consider marketing. Create a name for your hotel that expresses the desired identity and/or purpose of your establishment. 2. Create a business plan for your hotel. Making a thorough business plan is one of the most crucial tasks in starting a hotel business.
How To Start Hotel Business In India- The Ultimate Guide For Beginner's
But remember, this Hotel business In India requires a humongous amount of investment. The next step includes your financial plan to launch your business and all the paperwork. You must register your hotel and discuss your financial project with your bank, which will provide you with all the money and resources to start your hotel business.
Hotel Business Plan
A step by step strategy for starting a hotel business is as follows: Step 1: Prepare a strategy - the very first step in the process is to plan your business strategy which gives a snapshot of the hotel's growth plan for the next 5 years. This should include the foreseeable goals, obstacles, SWAT analysis of the industry as well as in depth ...
Hotel Business Plan: How To Start Your Hotel Business In India
Hotel Business Plan: After pandemic, Hotel industry is start booming and every other person wants to start his own hotel in India. Learn how you can start your hotel business in India in this article. How to Start Your Dream Hotel Business in 2022: It is a known fact that the hospitality industry was one of the fastest-growing and profitable ...
Know all About How to Starting a Hotel Business in India
Hotel Area Plan. The size of the hotel depends on your planning. If you're looking to construct a moderate-sized hotel with between 80 and 100 rooms, then the estimated space required is 10000 to 50000 square feet. For a 5-star hotel with greater than 100 rooms, you could go for about 100,000 sq ft. Hotel Layout Plan
How To Start A Hotel Business In India
Step 1: Find a market need. The first and most important step when learning how to start a hotel business is to gain a thorough understanding of the hospitality industry worldwide, as well as in your location. To get started, find your favorite hotel news sources, then set aside time each day or week to stay informed.
How To Start Your Own Hotels Business In India
A Step By Step Strategy For Starting A Hotel Business Is As Follows: Step 1: Prepare a strategy- The first phase in the process is to create a business strategy that shows how the hotel will grow over the following five years. This should include foreseeable objectives, barriers, a SWAT analysis of the industry, and detailed plans for achieving ...
How to Set Up a Hotel Business in India
The hotel room corridor must be at least two feet wide. Decide how spacious your hotel will be and engage interior designers for the look and feel of your hotel. But, as much as you plan the perfect layout for your hotel, it must meet with the fire safety requirements. The following are licenses needed for your hotel business in India: Fire ...
How To Start A Hotel Business In India
2. Get licensed. In order to legally operate a hotel in India, you'll need to get licensed from the government. There are several ways to get licensed, and it can be a process that takes some time and effort. 3. Get started with a business plan. Before you start your hotel business, it's important to.
How To Start A Hotel In India- A Start-Up Guide
Swot Analysis of the Business. The first step will be to identify the strengths, weaknesses, opportunities, and threats. Moreover, an example of strengths include the potential rise of tourist influx thanks to your hotel; weaknesses include the cost of land; opportunities, like strengths, look at the number of tourists in a tourist-heavy ...
How To Start A Hotel Business In India?
Here are some more things to include in your hotel startup business plan market research: Type of property - Decide what kind of hotel you wish to open. You can choose between a five-star hotel, airport hotel, resort, or villa as your hotel. Size of hotel - Next, you must decide how many rooms you plan to build.
Hotel Business Plan Template
Steps of your Hotel Business Plan. Let's dive into the step-by-step checklist of what your hotel business plan should look like. Infographic by Xotels. 1. Executive Summary. This first part should consist of two main parts, being: Mission Statement (Introduction): a 1 line company description only the essence of your hotel (not 2 lines or a ...
How to start a Hotel Business in India?
Introductions. Starting and running a hotel business in India necessitates a number of licences and registrations. Many licences and registrations must be obtained prior to opening the hotel and renewed while it is open. Furthermore, most licences require the hotel to follow certain rules or criteria in order to remain valid.
How to Start a Hotel Business in India
1. Create a long-term strategy. As a hotel is a traditional business, you must determine a long-term strategy. As initial investments are high and physical assets are involved, such as real estate and furniture, breaking even can take a while. This is why your hotel business plan must be for the next five years.
How to Start a Hotel Business + Business Plan [Updated 2024]
Open for Business. 1. Choose the Name for Your Hotel. The first step to starting a successful hotel business is to choose your hotel's name. This is a very important choice since your hotel name is your brand and will last for the lifetime of your hotel. Ideally, you choose a name that is meaningful and memorable.
Start Hotel Business in India: Advantages, Scope
Business Plan and Project Report are also essential to get business loans. You also can use Business Plan to get venture capital. Get the Relevant Licenses and Registrations to Start Hotel Business in India. For every business, there are some mandatory and beneficial registrations that they must have. The same goes for the Hotel Industry. For ...
Hotel Business Plan
Step 2: Fill in and submit the loan application form along with documents. Step 3: Bank will verify the form and documents for final approval. Step 4: After the loan is approved, the bank shall disburse the loan amount in the applicant's bank account. Also Read about the other business plan: Supermarket Business Plan.
How to Start a Hotel Business in 2024 (+Cost and Business Plan)
Again, this is for a lifestyle full-service hotel so it's not the cost of a 10 room bed and breakfast, for example. That figure breaks out into 5 buckets: Land : $33,900 (10%); this includes real estate cost. Building/Construction : $221,500 (66%); naturally building and construction is the largest budget item.
Licenses and Registration Required for Hotel Business
If you are planning to start a hotel business in India, you need to obtain various licenses and registrations from different authorities. In this article, you will learn about the types of hotel licenses, the eligibility criteria, the documents required, and the procedure to apply for them. Find out how IndiaFilings can help you with your hotel business compliance.
How to Start a Homestay Business
Furnishing: To begin with, you will have to set up the space with basic furniture such as bed, table, a pack table, a chair and linens like curtains, bed sheet, bed cover, etc. Furnishing can cost ...
Nepalese Billionaire, Tata Group To Expand Hotel Footprint Across India
A joint venture between Nepalese billionaire Binod Chaudhary 's CG Hospitality and Tata Group's Indian Hotels plans to expand their hotel footprint across the Indian subcontinent and the ...
What Do Indian Tourists Want? We Asked 5 Hotel Brands
Last month, the company announced its plans to double its operating portfolio in India, aiming to have 100 trading hotels in the country by 2029. In 2023, the hotel chain's occupancy rate ...
India regulator plans tighter rules for listing of small businesses
INDIA'S markets regulator and exchanges will tighten rules for public offers of small and medium enterprises (SMEs), according to two sources, after complaints of misuse of a separate listing platform introduced in 2012 to enable small businesses to access the capital markets. Read more at The Business Times.
Pakistan PM unveils broader plan to sell most state-owned firms
Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif said on Tuesday, broadening its initial plans to sell only loss-making state firms to shore up its shaky finances. The announcement came after Sharif headed a review meeting of the privatisation process of loss-making ...
Indian Renewable Energy Firm Plans Maiden Dollar Bond Sale
The lender plans to raise $3.5 billion via debt this financial year, with foreign currency notes likely accounting for the bulk of it, said Managing Director Harsha Bangari. A spokeswoman from ...
CBL Properties plans new development at Cool Springs Galleria in
The proposed plan includes the development of 76,700 square feet of retail and restaurant space, around 600 apartment units across two buildings and a 120-room hotel in the parking lots to the ...
DBS Bank India plans to double small business book in 3 years
MUMBAI : Having achieved its target of a billion-dollar book in the small business segment, DBS Bank India now plans to double its exposure in three years, a senior banker said, underscoring the ...

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How To Start A Hotel Business In India | A Step-by-Step Guide.

Deciding the type of your Hotel

Finding The Right Location for your Hotel

Deciding on Hotel Area

The Layout of your Hotel

Investment Source

Investigating Your Competition

Getting Permits and Licenses

Hiring the Staff

Transport Facilities

Marketing of your Hotel Business

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A Complete Guide to Starting a Hotel Business in India

What is the Hotel Business in India?

How to Establish a Hotel Business in India?

2. Create a business plan for your hotel

The business plan you create for your business must include the following sections:

3. Select the legal structure of your hotel

4. Arrange to fund your hotel

5. Find a place to start building

6. Register your hotel with IRS

7. Open a bank account for your business

8. Get Insurance for your hotel

9. Hire staff for your hotel

Necessary Licence and Registration You Need to Start a Hotel Business

Conclusion

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How To Make a Successful Hotel Business Plan?

How to Start Hotel Business in India ?

Discovering the market need

Crafting Your Strategy

Determine Your Numbers

Doing Your Paperwork

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How To Start A Hotel In India

How To Start A Hotel Business In India

Step 1: Find a market need.

Step 2: Craft your hotel’s strategic goals.

Step 3: Run the numbers

Step 4: Review financing options for your hotel business

Step 5: Do your paperwork

Step 6: Hire and train your hotel team

Step 7: Draft a marketing plan

Step 8: Launch your hotel business

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A Step By Step Strategy For Starting A Hotel Business Is As Follows:

List of Licenses and Permits Required

FSSAI Basic

BAR License