A complete guide to starting and franchising your hotel business in India
India is one of the countries where its travel and tourism sector contributes to a large portion of the country’s GDP. There is a huge potential available in the hotel industry if you are planning to start a hotel business in India.
Thanks to globalization and social media, people have become more aware of the comforts and luxuries they can expect from a good hotel. If you are looking to start a hotel business in India then now is your chance to do so. In the past decade, there has been a huge rise in demand for good hotels due to the popularity of the travel and tourism sector.
Let’s look at what you can do to start a hotel business in India and how you can grow your business in India as well.
How to Start a Hotel Business in India
Starting and running a hotel business can be challenging for any new business owner. Today hotels need to market themselves online and need to ensure that they have great customer ratings. Here is what you need to know when starting a hotel business in India.
Investments
This is an important step to consider before starting your hotel business. You need to know the upfront costs and fees needed to start and maintain your business. Some factors you need to consider will be, size, type, location, your business model, government regulations, licenses, permits, etc. Based on these factors you need to come up with an amount that can be invested into your business.
If you need financial assistance on this step, loans are always an option. Normally, banks provide up to 70%.
Location and Property Registration
You have two choices when it comes to the location of your hotel business. One is owning your land or premises. With this, you don’t have to worry about rent and the interest payment on the land is tax deductible. You also have complete control of the place. One downside is that it may be harder to relocate your business. Along with being occupied with maintenance costs.
To have ownership of your location you will need a sale or mortgage deed and title verification.
The second is renting the land or location. Here, you can easily get access to prime locations. You will also be free to focus more on investing in other parts of your business. One downside may be high annual rents or heavy increments.
To rent a location you will need a rent agreement or the lease deed with the owner of the land or property.
Licenses and Permits
Here are the important licenses and permits you need if you plan to open your hotel business in India.
- NOC From the Ministry Of Tourism
- Premises/Building Permit
- Fire Safety Permit
- Eating House License
- Public Performance Licence
- Signage Licence
- Police Licence For Hotel
- Health Trade License Or Trade License
- Labour Law Compliances
- Information Technology Compliance
- Lift Clearance
- Fssai Food Business License
- Bar License
How to Grow My Hotel Business in India
It’s important that you first take a step back and look at your business through an outsider’s lens. This can be done with a SWOT analysis. This will tell you what steps you need to take next.
SWOT Analysis
Your first step will be to focus on the strengths, weaknesses, opportunities, and threats.
For example, your strengths may include a rise in sales due to an increase in guests. Weaknesses can include the cost of land. Opportunities can be the number of tourists as potential customers.
India is a very popular tourist destination, so this can be considered a huge advantage for your business.
Threats would be the strategies your competitors are using to further their hotel businesses.
Should I Franchise My Hotel Business?
Your business is now fully up and running. You’re now thinking that you want to expand your hotel business further. Franchising is a good way for business owners to rapidly expand their business through other independent entrepreneurs.
The franchise business model in India is the most successful method businesses have used to thrive in today’s economy.
How to Franchise My Hotel Business in India
Understanding Business Models in India
Before you start with anything it’s important to know what kind of hotel franchise you want to run. Looking up the types of business models successful hotel chains in India have used & is a good place to start.
For example, a lot of hotel chains and franchises use hotel aggregators. They are businesses that rent hotels on a lease and in exchange do operational and marketing duties for the hotel chain. A lot of smaller hotel brands use this to market themselves to more customers.
How to Choose the Right Franchise Partner
The success of your hotel franchise depends directly on the success of your franchise locations. Choosing the right franchise partner to run your business in a new location is key.
Ideally, you want a franchise partner that has prior experience in running a hotel business. Your franchise partner also needs to be someone that is dedicated to making your business a success and is willing to make a long-term commitment to make that happen.
Conclusion
Starting and growing your hotel business in India can be a profitable business venture. Seeking professional help along the way is a good idea if you want your hotel franchise to be a success. This is where franchise consulting agencies like sparkle★minds come in to help.
If you are looking to start a hotel franchise business in India then contact sparkle★minds to get started on making your hotel business a success in India.
