How to start a hotel business in India?

In today’s post, I will tell you how to start a hotel business in India. You can earn well by starting a new hotel business, but if you do not know how to open a hotel, or how to start a hotel, then this post is for you. 

The tourism industry has grown so much over the past decade and continues to grow day by day, that it becomes inevitable for a person to not look at its advantages. The hotel business is surely profitable, that’s why OYO is growing at an unprecedented growth even after the lockdown. Though the quarantine period brought great loss to the hotel industry, but it has also recovered at the same pace in the post-quarantine period.

There are many things to consider while opening a hotel. Like it should be situated far off from the city noise in hilly areas or near the forest, the customers should feel comfortable when they check into their room, etc. A good hotel always obeys the demands of the customer and pays heed to his needs. 

Only then will one be able to survive in the hotel business. Now I will tell you how to open a hotel and what things you have to pay attention to, to get success in this business. Let’s dive into our topic now: How to open a hotel business in India.

How to start a hotel

1. Create a Plan

Every new business starts with a plan, whether the business is big or small, everyone needs a plan initially, before entering the hotel business, you should know what kind of market you are entering. And what are the risks you might face next?

If you are not already familiar with things like how a hotel works then read about it as deeply as possible to understand the hotel business and gather information about opening a hotel to make a hotel successful. Find out what works and what causes a hotel business to sink. Find out all about the hotel business and stay updated with the latest news.

You should know what type of people will be staying in your hotel and what you can do to attract them to your hotel. The right plan can motivate people to book your hotel. Hope you have understood the first step of how to open a hotel business.

2. Select the hotel type

how to start a hotel business in india

There are many types of hotels. You have to consider which type of hotel you want to start. 

  1. Boutique hotels are small hotels. They can often be in a historic building or are built by replacing some other business.
  2. In family hotels, attention is paid to accommodating large families and small families. Family hotels usually have bigger rooms, more beds, and swimming pools and such hotels are often in places like parks so that they attract more families.
  3. Budget hotels have low room rates and these hotels also have limited facilities. Budget hotels also cost less to build. Budget hotels are usually made for those people who cannot stay in more expensive hotels, although nowadays great facilities are also being provided in budget hotels.
  4. Luxury hotels are expensive hotels that are made to cater for the upper class. These are often expensive, and therefore more facilities and services are provided to the customer, and great attention is paid to every detail, which leaves the customer happy and satisfied.

So what type of hotel do you want to open, completely depends on your choice. Once you have built one you can’t change it easily.  Do a lot of research about the demographics of your area, attractions, pilgrimages, and proximity to natural wonders. It will give you an idea of what to expect from your customers, what demands they will keep, what type of customers will come to you regularly etc.

3. Decide on whether you want to build or buy a hotel

The third step of opening a hotel is to decide whether you want to build a hotel or buy a hotel. The cost of building a hotel is very high and it also depends on the place where you want to open a hotel.

And if you want to save some money, then using an already built site is another option, how much will it cost to buy or start this hotel, it also depends on the location of the hotel.

4. Get a license to open a hotel

how to open a hotel

If you have chosen the place to open a hotel and all the preparations have been made to open your hotel, then you should apply for the license to open a hotel soon with the local government there because it takes a long time to approve the license. In third-world countries like India where corruption is at its roots, getting a license can take weeks, so you’ll have to prepare for that as well.

Also there’s probably around plenty of licenses that you have to get because you’ll need to provide different types of services in your hotel.

Some of licenses are-

  • NOC from Ministry of Tourism
  • Premises/Building Permit
  • Fire Safety Permit
  • Public Performance License
  • Eating House License
  • Signage License
  • Police License for Hotel

Health Law Licenses:

  • Bar License
  • FSSAI Food Business License
  • Shops & Establishments Act Registration:
  • Certificate of Environmental Clearance
  • Lift Clearance

Labour Law Compliances:

  • ESI Registration
  • PF Registration

Taxation Compliances:

  • Income tax registration and returns
  • GST registration and returns 

5. Get Funding

Most people are not able to fulfill the dream of opening a hotel because they do not have enough money. When people think of opening a hotel, funding is one of the most important things. First, you should get a map of your hotel done for funding and find out how much budget is needed to start your hotel business

Once you know how much budget you should have to open a hotel, you can arrange money in three ways

Self Funding

If you have a bank account or enough money, then you have crossed the first hurdle of opening your hotel. Opening a hotel in partnership is also a good solution because it reduces the risk of losing money if you are opening a hotel together. If so, try to spend more money on the hotel so that you can earn more profit from the hotel. Take a loan – If you have less money you can take a loan but with this funding method you will have to pay interest or you will have to pay back the entire money at a given time 

6. Train the staff 

You cannot run your hotel business alone, you will need a lot of staff to run the hotel well and if you have opened a restaurant in your hotel then you will also need waiters along with a chef and a cook.

7. Build a perfect marketing plan 

Once everything is right, you will have to make the right marketing plan for your hotel, it will work to grow your hotel business, for this, you will have to invest one part of your profit in marketing. Without marketing your hotel will not be visible to people unless they take a trip yo your location. You can use social media for marketing where you can market your hotel with Google ads, Facebook ads, etc.

8. Take Your Hotel Business Online 

how to start a hotel

In todays era where all the work is being done online, so you must take your hotel business online. Most people prefer nowadays to book their hotels beforehand that’s why you’ll need to get it online so you can also provide a hotel booking facility on your hotel website so that any person can book your hotel room online. 

9. Register on Goibibo, Makemytrip 

If you take your hotel business online then you will earn good money from it and for this, you will have to create a website in the name of your hotel but if you do not want to be a website in the name of your hotel then you can register your hotel on online platforms like Goibibo, Makemytrip, Trivago. You can register your hotel by visiting the website, this will also make your hotel online. 

Also Read: How to earn 300rs daily online?

How to open a hotel 

What things should be kept in mind before opening a hotel 

1. Choose a good place before opening a hotel- People always book hotels according to their needs, most people look for hotels near railway stations, airports, and famous buildings and so if you also want to start a hotel business, then you have to choose a good place to open a hotel. 

2. Have good hotel facilities- What are the facilities in your hotel that people like a lot, it helps a lot in making your hotel successful, so in today’s era of competition, if you do not keep the facilities of your hotel good, then your hotel business will drown eventually.

Therefore, you should keep more facilities in your hotel so that more people can be attracted to your hotel, you can give these facilities in your hotel which are as follows 

  • Pick up facility 
  • Restaurant facilities 
  • Pool facility 
  • meeting facilities 
  • Dance Club Facility

Keep the hotel clean 

Most do not make their hotel business successful because their hotel does not have good cleanliness. After all, today’s smart people like cleanliness very well, so if you want to make your hotel business big i.e. successful then you have to buy your hotel. I also have to keep clean 

Must have a beauty parlor in the hotel 

You people know that in today’s era, most of the house owners are women, they live in the whole house, so if you are opening a hotel, then you have to pay special attention to women, for this, you can open a beauty parlor in your hotel. can. 

Questions related to “How to open a hotel?”

How much will it cost to open a hotel? 

It completely depends on the size of your hotel and where you want to open the hotel. For example, if you want to open a 4-story hotel in a city like Mumbai, then it can cost around 5 to 6 crores. 

Are hotels a good investment? 

Yes, There is going to be more growth in the hotel business in the coming times, so investing in a hotel is a good thing. 

Also Read: Online form filling jobs for students?

What to do before buying a hotel? 

Before buying any hotel, we should thoroughly check the hotel room, as well as we should also confirm whether the structure of the hotel follows the rules of the government or not and whether this hotel has a license or no

How long does it take to build a hotel? 

This thing completely depends on the construction of your hotel, as the construction period of large hotels is 2 to 3 years, while the construction period of small hotels is between 6 months to 1 year. 

How to open a hotel in the village? 

In villages, hotels are considered like restaurants where we can eat, if you want to open a restaurant, then for this you can choose a place where frequent passersby and people like to stay. 


I hope that you have understood How to start a hotel business in India, How to open a hotel.

If you enjoyed this article, please share it with your friends and family.

Today we learnt-

  • Cost of operating a hotel in India
  • How to start a hotel business in Chennai
  • How to start a hotel successfully
  • How to start a hotel business in Bangalore

If you have any questions, please leave them in the comments box below and I will respond as soon as possible.


FAQ (Frequently Asked Questions)

How much money will it take to open a hotel?

To open a hotel, you should have at least 10 lakh rupees, which will provide that much as to open a decent hotel with basic facilities. But that will provide you with meager income as customers will have low expectations from you. Therefore you’ll need to put in extra money to provide better facilities and to give your hotel and pompous look.

How much money can I earn by opening a hotel?

To open a hotel, you should have at least 10 lakh rupees or you can open a good hotel for even more money. It depends on how big you want to open the hotel. If your hotel is in big cities then you can easily earn from Rs 1 lakh to Rs 1 crore a month by opening a hotel.

How to get a loan for a hotel

If you want to open a hotel but don’t have that much money, you can take a loan from any bank to open a hotel. You’ll need to take a business loan from a bank and open a Current account.

How much money will it take to open a hotel?

To open a hotel, you should have at least 10 lakh rupees. The more the merrier. You can open a good hotel for even more money. It depends on how big you want to open the hotel.

How much money can I earn by opening a hotel?

If you open a big hotel in a good place, then you can earn lakhs of rupees a month. The bigger the city you open your hotel in, the more money you can earn.

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