How to start a new Hotel Business?

India is one of the top tourist hotspots of the world and one of the up and coming economies, and these factors make it one of the leading options when it comes to the hospitality business. As young entrepreneurs, the thought may have crossed your mind to open a new hotel but you don’t know where to begin. So in this video let us today look at some guidelines that are important to know before you decide to start your new hotel.

1) Hotel Type and Hotel location –

The first and foremost important thing is to decide the type and location of the hotel. The types could range from an economic budget accommodation to a theme based star hotel providing various facilities. While choosing the location, it would be ideal to start in a tourist hub or a commercial location or may be a hill station, again depending upon the theme and type of hotel you want.

2)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. 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. If you plan for an off-beat remote distance location, make sure if it accessible for your guests and there’s enough availability of power, water, infrastructure etc.

3) Hotel Area Plan –

Determining hotel area is completely depended on the size of your hotel. For a midsized hotel of 80-100 rooms, the approximate area required would be 10000-50000 square feet.

4) 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.

5) Financing Your Hotel –

If you require financial assistance, 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.

6) Recruitment of Staffs –

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

7) 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.