How To Start A Hotel Business In India – Business Plans & Opportunity


Hotel business in India is a lucrative business option, as in India tourists inflows are increasing day by day due to the prime attractions here and diverse culture. Hence, hotel business can be one of the profitable businesses to start.

Here is some guidance before you start with your hotel business in India.

Type and Location

Before you actually begin with, it is necessary to decide on the type of hotel that you are going to establish. It can be a catering business or a hotel with lodging facilities etc or a small restaurant. Another important factor is the location of the hotel. While choosing the location, it would be ideal to start in a tourist hub or a commercial location like Mumbai, Delhi, Kerala, Bangalore or any hill stations etc.

Hotel Logistics

To make your hotel business successful, a vital aspect is to have proper infrastructural and transport facilities to the hotel. It should be easy for the people to reach the hotel easily. A hotel can be thus near to a railway station, a bus stand, shopping malls, airports etc. The best thing is that more people will get attracted to your hotel in these areas, in turn giving you huge revenue.

Hotel Area Plan

Determining hotel area is completely depended on the size of your hotel. If you are planning for a midsized hotel of 80-100 rooms, then the approximate area required would be 10000-50000 square feet. For a Five-star hotel with more than 100 rooms, you can go ahead with around 100,000 square feet.

Hotel Layout Plan

For planning the layout of your hotel, you can seek professional help from interior designers who can provide you with good attractive plan within your budget. They can even help you with beautiful layouts that will attract more tourists. For getting in touch with the professional interior designers, you can look in the internet and through advertisements.

Financing Your Hotel

If the financial assistance is required, in India you can avail business loan from many private and nationalized banks. Normally, the 30% of the loan amount will have to be arranged by you and the remaining 70% will be provided to you by banks. You need to decide on hotel budget well in advance before approaching the bank. The banks will check your credibility and liabilities before granting the loan.

Market Surveys For Feasibility Study

It is essential to know the scope of your hotel business in the particular area where you are planning to start the hotel. Hence, you have to conduct a market survey within 10kms of the hotel location. This will help you to know whether it will be profitable in starting the hotel in that location. If there is any competition from similar hotels, you can create a business plan with unique facilities and features to offer for the customers. If you have something new and unique to offer, it will attract more customers to your hotel than your competitor hotels.

Hotel License

When you decided to start the hotel, the next step is to go ahead with the hotel license. If you are planning for a bar/liquor facility within the hotel, you need to get a license for the same. You also need to get Pollution Control Board license. If you also think of conducting events within the hotel premises, a separate license is essential. Proper verification is mandatory from concerned officials regarding the fire safety, elevator functions etc. Below are the list of required license for running a hotel in India.

  • Food Safety License – You will get from FSSAI (Food Safety And Standard Authority Of India)
  • Health/Trade License – This license can be obtained from Local Civil Authority in your area.
  • Eating House License – This license can be obtained from Licensing Police Commissioner of your city.
  • Liquor License – If you are planning for a bar/liquor facility within the hotel then you need this license from local Excise Commissioner in your city.
  • Fire Department License – This can be obtained from fire department in your area.

Recruitment of Staffs

Depends upon the size and need of the hotel, the staffs are to be recruited. They include front office staffs, housekeeping, line managers, supervisors, waiters etc. You can recruit people through placement agencies or through direct advertisements in media.

Hotel Rating and Promotion

You have to get ratings for your hotel from Indian Tourism Board while you start. The normal ratings can be 1-, 2-, 3-, 4-,5-. Promoting your hotel will increase the revenue. Hence, you have to see every possibility to promote your hotel both within India and abroad.

What else you think can make your hotel business profitable? Would you like to share any tips here?