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How to start hotel business

Having digital tools for planning, booking, and enjoying a trip, India has become one of the most digitally advanced countries in terms of travel as India’s rising middle class and disposable incomes are on the rise and development of domestic and outbound tourism. Moreover, it is truly a market aim on the arrival of foreign tourism in the Indian tourism, hotel business, and hospitality sector.

However, all the numbers used earlier indicate the future of the hospitality industry in 2020 and in the years to come. Now it is useless to lend to COVID-19 because it does not make any company bleed. It is also true that with the beginning of reality. We as mankind will eventually overcome this epidemic and its consequences, and overcome the recession.

Since the hotel industry is mainly dependent on travel, also banned across the country. Which faces various challenges, but it will eventually reopen in the coming months, eventually becoming one of the most lucrative businesses to start a business.

How to start a business in the hotel business in India

Type and Location:

The starting point of such a diverse industry is definitely determining the type of hotel you are going to establish. The hospitality industry offers you options, whether it be a catering business or a hotel with accommodation etc, or a small restaurant. The location of your business as a tourist center or Mumbai, Delhi, Kerala, Bangalore or any hilly place to start a business place is ideal.

Hotel Logistics:

So, after developing your mind about the part and location of your business. You can begin the process of successfully transforming your business with the logistics such as proper infrastructure and transportation facilities to the hotel. The location is also involved here as it is easily accessible with a train station, a bus stand, shopping malls, airports, etc to attract more customers and revenue.

Hotel Area Plan:

The size of your hotel will determine the hotel area. For a medium-sized hotel, 80-100 planned rooms, the approximate area required is 10000-50000 square feet and for a five-star hotel that required more than 100 rooms, you can move up to about 100,000 square feet, so now it is up to you to choose the location effectively.

Hotel Layout Plan:

To plan the layout of your hotel, you can enlist the help of interior designers who can provide you with a nice attractive plan within your budget. They can help you with beautiful layouts that attract more tourists. To get in touch with professional interior designers, you can examine on the internet and through ads.

Financing your hotel:

Finance is an essential one for every business. If one seeks financial assistance, one can get business loans from many private and nationalized banks. This amount will divide into installments, of which you will have to arrange 30% of the loan amount. The remaining 70% to you by the banks will provide. Therefore, the hotel budget is determined already in advance before approaching the bank. Also, your credit rating is important because banks will check your credibility and liabilities before making a loan.

Market surveys for a feasibility study:

Research and research help in the process of starting any business by providing information like the purpose of your hotel business in the specific area where you plan to start the hotel. Start with a market survey within 10 km, learn about the competition coming from similar hotels. It creates a business plan with new and unique features and features.

Hotel License:

In India, one cannot avoid the licensing area before starting any business, it also goes to hotels. So here comes the next stage, i.e. progress with hotel license. If your preferred type of business is a bar/liquor facility within a hotel, you will need to obtain a license for it. Pollution Control Board license follows it, a license to hold events inside the hotel premises. It has proper verification from the relevant authorities regarding fire safety and lifts operations. Below is a list of licenses required to run a hotel in India:

  • Food Security License issued by F FSSAI (Food Safety and Standards Authority of India)
  • Civil Health / Business License of the local civil authority in your area.
  • Eat your home license by licensing it to your city’s police commissioner.
  • Liquor license for a bar/liquor facility inside the hotel from your local excise commissioner in your city.
  • Area Fire Department license of the fire department in your area.

Personnel Recruitment:

Now, it depends on the size and need of the hotel to hire staff including front office staff, home maintenance, tax managers, supervisors, staff. You can hire people through placement agencies or direct advertisements in the media or other channels.

Hotel Promotion:

Before you start the promotion process, you can start getting ratings for your hotel from 1 to 5 from the Tourism Board of India. Promotion affects business because it increases revenue. So its relevance cannot avoid, one should see every possibility to upgrade the hotel in India and abroad.

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