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How To Start Hotel Business in India 2021

How To Start Hotel Business in India 2021

Hello Startupcrow readers, today we will discuss about how to Start Hotel Business in India. On hearing the name of the hotel, the scene of big buildings comes in front of the eyes. As you also know that the hotel offers a place to stay for your customer. In today’s time, Hotel’s business is quite spread.

Because today Hotel Business in India has become a very big market. There are many tourist destinations in India where people go for fun, entertainment, etc, they need a place to stay there. Till a few years ago, people used to find the Dharamsala to stay there. But since then from the last few years, the hotel has started to stay with full pleasure facility, coming to tourism from a city to stay in another city to stay in the hotel.

Hotel Business in India

The hotel can be divided into different parts in India depending on service, facilities, types, and location. Some major categories of hotel service in India are as follows:

1. Heritage Hotel

This type of hotel is mostly in the state, Rajasthan and Madhya Pradesh, they are a symbol of the old pride and grandeur of India. They are mostly houses of Havelis, palaces, and ancient kings.

2. Luxury or 5 star hotels

These classes are equipped with world-class service, infrastructure, and facilities. These proposals experience tourists to live in wonderful eating and living in the highest environment. Most of India’s five and seven-star hotels have gained global appreciation.

3. Budget Hotels

There are budget hotels or economy hotels at all tourist destinations in India which are escaped with good service, comfortable lodge, and modern facilities.

4. Resorts

Vacation and secluded, the best place to spend time in resorts, are mostly resorts in hill stations or near the sea.

You May Also like to Read – How to Start Bedspreads And Blankets Manufacturing Business In India 2021

Requirements for Hotel Business in India

Whether there is any business, it is very important to take care of things related to them before starting a large level or small level. What should you do for small or large businesses? How much will you invest in all this and then how much profits will you earn? It is very important for you to know all these things because all this information will be beneficial for you to start Hotel Business in India .

  1. Place (shop)
  2. Investment Worker
  3. Gst number
  4. Marketing
  5. Profit

1. Space for Hotel Business in India

The most important thing is to be any business or any shop which you want to do for your business, what level do you want to start with a small level then you start your business with less investment and if you start a business from a large level, you will need to invest more in it.

The hotel is at a place where there is either a tourist destination or a hill station, which you can earn profits in it. You have to take care of the fact that you choose to make the hotel, it should be at a place where you can provide your customers facility according to their demand. As if you do hotels near a tourist destination, then you can assist with the tourism situations such as Guide Providing and managing taxi etc. to arrive.

You must have a parking place, from which your customer does not have a problem of parking. Determining the place in business and being less or more space is a very important part, so you should pre-estimate before doing business.

When you determine the place, it will be a matter of fact that you choose for business and prepare it, there must be so much place in which you all easily keep all the same.

2. Investment in Hotel Business

Investment in this business depends on the level of your Hotel’s business. If you start a big business, then you have to do more investment and starts small business, then there is a low investment. Along with this, you have to spend even for the same. As you spend to interior, beds, mattresses, clothes etc. in your hotel rooms, you will be investing in this business.

If you rent any already made building, then there will be a separate investment. If you make a building for it, then the standard of investment will be different.


  • If you rent the already built building, then the estimated 10 to 12 lakh rupees for it.
  • If you build a new building, then the estimated 50 to 60 lakh rupees for it.

3. Worker for Hotel Business in India

The employees needed to see the level of business because you think completely about how big or small you want to keep business. If you do big business then you will need more people in which the work will be different. You have to explain everyone on the basis of their skills for this. If you start from a small level then you will need less people like 10 to 12 workers and on the other side, if you do business at a large level, then you will need 25 to 30 people for this.

4. Document for Hotel Business

If you start any business, then some personal documents need and also business licenses like

Personal Document (PD) :- Personal Document

  • ID Proof :- Aadhaar Card , Pan Card , Voter Card
  • Address Proof :- Ration Card , Electricity Bill ,
  • Insurance 
  • Bank Account With Passbook
  • Photograph Email ID , Phone Number ,
  • Other Document  

Business Document (PD)

  • Business Registration
  • Business pan card
  • GST Number

5. Marketing for Hotel Business in India

Marketing is very important for Hotel business because it will not be easy to run a Hotel business without it. You have to print the card for your business advertising, posters and banners will have to get information about this business.

You can also advertise it on TV. Along with this, you must give your hotel card to your customers coming to the hotel and take feedback about the hotel. Keep in mind that people who came to stay at your hotel do not have any problems.

How Much Profit in Hotel Business in India

If you talk about profit in this business, it is very much, you can earn a good profits without loss, it is only a few presosition in which you have any loss in it. This is a business whose demand in the market remains the same year and the profit margin is also very much in this business.

If your hotel is near a tourist destination, then you should already know that at that place the tourist comes according to the weather or comes at a special festival.

  1. How much does it cost to open a 5 star hotel in India?

    This is way above the average per unit cost range of Rs 75 lakh to Rs 1.8 crore for a five-star deluxe property, according to the Federation of Hotel and Restaurant Association of India

  2. Is running a small hotel profitable?

    Owning a hotel can be profitable if you have the right combination of location, price point, quality of the physical asset, marketing strategy, dedicated employees, and supportive investors and management partners. However, a hotel isn’t profitable by default, so you can expect a lot of hard work to generate profit.



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