How to Start Hotel Business, Types, License, Loan, Profit

Nowadays, Hotel businesses are failing because of hotels. Many types of tourists when they visit from one state or country to another, they prefer hotels for their vacation stays.

In such cases, if they find any hotel with the best arrangements that complete their basic needs such as: guide, lodging, food and all the basic facilities at one place, then they mostly prefer to choose the same.

This is one of the reasons for demand of hotels in the market and starting Hotel Business at right place will surely help you in generating a lot of profit.

In this post, we’ll understand How to Start Hotel Business and What Are Minimum Requirements to Start a Hotel in detail.

How to Start Hotel Business, Types, License, Loan, Profit

Table Of Contents

What Is the Full Form of Hotel

The full form of the hotel is House of Table Eating and Living. i.e. a house where all types of arrangements are available. such as: lodging, food etc. and completes all the basic human needs.

What Are the Types of Hotels

There are many types of hotels in our country. Some are small, some are big, some have good services and some are normal. In this various hotels are divided into different categories such as:

Heritage Hotel: Such hotels are mainly in states like Delhi, Rajasthan, Madhya Pradesh etc. These hotels are a symbol of India’s old glory, culture and grandeur. Such hotels are mostly old mansions and palaces.
Luxury & Star Hotels: These types of hotels are equipped with world-class services, infrastructure and all kinds of facilities. These hotels provide best atmosphere to their customers with best quality food and room infrastructure which are equipped with all kinds of facilities. Due to these many facilities, these hotels are expensive too.
Resorts: If you are planning to stay in quiet and calm places for your holidays, then you should opt for resorts. These resorts are special places that are specifically built out of the city near hill stations, beaches, rivers etc.
Budget Hotels: You can easily find budget hotels in every state and city of India. People who do not have much money or who keep roaming to different places then they can easily get benefits from these budget hotels, such hotels are usually pocket friendly. They don’t even provide many facilities. They are just staying for a night.

Cost of Building a Hotel

The price of hotel depends on many prospectives such as: the location where you want to start your hotel, what standards and facilities you want in your hotel, Which type of customers you want to deal with, etc.

If you consider all such points and start building a hotel then, it will cost you around ₹8 to ₹15 lakh [$,9000 – $18,000] to start a hotel. At the same time, if you invest more then you can also build more attractive and fascinating hotel.

How to Start Hotel Business

Demand for Hotel business is increasing nowadays. After the lockdown, people are visiting vigorously a lot and for staying they are trying to pre-book hotel rooms for their lodging.

If you also want to earn good profit from hotels, then choose those places where tourists, travelers, foreigners etc. keep visiting. You can also start your hotel near pilgrimages where tourists visit a lot.

To start a hotel business, you should have land, employees, marketing and a lot of money, only then you will be able to do hotel business with a good location and better facilities.

To do hotel business, first of all, find a place or shop where you can start your hotel. After that you have to make strategies for what kind of hotel you want to start, how much you can invest, what facilities you gonna provide, standard of your hotel etc.

Apart from this, you are also required to take various types of registration and permits to do hotel business otherwise, your hotel is considered illegal.

Registration & License for Hotel

For starting your Hotel business given licenses and registrations are a must. Below given details are required for your Hotel:

Current Account ( For Business Transactions).
Shop License (Gumasta License).
MSME Registration
Udyog Aadhar
FSSAI License
Liquor License
GST License

If you want to run your Hotel without any police hassle or any legal action, then you need to get these licenses approved.

How to Open Current Account for Hotel Business

To receive payment under your Hotel business, you must have a current account under your business name. For getting a current account for your Hotel Business you will need a shop license.

These are a few trustworthy global banks for opening current accounts:

SBI Bank
ICICI Bank
HDFC Bank
AXIS BANK
BOI Bank

How to Get Shop License for Hotel

To get a shop license for your Hotel you have to first select a location for opening your office. If you’re renting any marketplace then, you have to get a rent agreement where your Hotel name should be mentioned.

Once you get that place, you have to get a banner for your Hotel that has your business name and address on it.

A copy of your rental agreement and a photo of your business with the banner is enough for getting a shop license.

To get a Gumasta license, you have to first go to the official website of your state or you can simply visit the nearby office.
After that, you have to register your business there.
After a few days of registering, your Hotel Gumasta license comes to your house.

After reading this, you can apply to get a shop license for your Hotel business.

How to Get MSME Certificate for Hotel

To register your Hotel business under govt. Policies and their scheme, you have to register your business under MSME facilities.

MSME stands for Micro, Small Medium, and Enterprises. It is a type of enterprise managing government that helps you to get govt. loan schemes and benefits etc.

To get your own MSME certificate for your Hotel business you can go to the website and apply for an MSME certificate.

How to Get FSSAI Licence for Hotel Business

If your Hotel facilitates their customer with edible beverages, then you must apply for FSSAI License as well.

FSSAI License Stands for the Food safety and standards authority of India. This license provides you the consent for the good quality of edible products sold by you.

FSSAI License is not mandated for businesses that have an annual turnover below ₹12 lakhs [$14,000] or if their production capacity falls below 100 kgs per month. Such businesses only require an FSSAI Registration.

Vending edible goods without this license is a punishable offense. If you are providing such facilities, then this license is must.

To get your Hotel business FSSAI License you can simply log on to the website and start selling approved good quality food and beverages.

How to Get Udyog Aadhaar Certificate for Hotel Business

To get a loan for your Hotel business from govt. You should first, register your business as Udyog Aadhaar Certified. It will help you to apply for govt- loan schemes and get subsidies in the form of bank loans.

To get a udyog aadhaar certificate for your Hotel business you log on to the website and apply for the Udyog Aadhaar Certificate.

How to Get Liquor License for Hotel Business

Liquor is one of the legal and illegal drinks whose consumption acts as good as well as bad for health around the world.

If you also serve such drinks in your Hotel then you will require a Liquor License. It permits you to serve a limited amount of drinks to members visiting your Hotel.

To get your liquor license you can follow the below-given steps:

You must own a permanent Hotel hall.
You should have FSSAI and Gumasta Licenses.
The validity of this license is only valid for up to 1 year.
To get your liquor license click on the button below.

Apply for Liquor Licence

After applying you can get your liquor license for Hotel Business easily.

How to Get GST Licence for Hotel

To start your Hotel Business you must also apply for GST License.

GST License stands for Tax on Goods and Services. This tax is included in the final price and paid by the consumers to sellers and by sellers to government. The GST is a common tax used by countries globally. This license provides you the approval for the good quality of Hotel sold by you.

Businesses and individuals who are supplying goods can claim GST exemption if their annual turnover of less than Rs. 40 lakhs [$48,999] in a financial year.

Such businesses only require GST Registration. Vending Hotel without GST License is a punishable offense.

For starting your Hotel Business, this license is the first document that must be approved. To get your Hotel Business GST License you can simply log on to the website and start selling your Hotel.

Now, If you do not have money to start this business then you can take a loan for your business.

The Hotels are known for their various facilities and delicious food. Before deciding on menu items keep in mind the following things:

First of all, decide the items you wanna serve in your Hotel.
After deciding Dishes, Select common ingredients for multiple dishes.
You can also visit other Hotels around your area.
You must perfectly know, how to make any particular dish.
Once everything is sorted you are good to go.
You can also add such food items, that are not available in your area.
You can also add such food items which are famous in different parts of the world.
You can also add favorite list which will consist most ordered items and their combos.

Where to Get Raw Material for Hotel

Once the menu card is prepared, now you have to list out the ingredients which you will need in bulk.

For buying such materials you will have to visit wholesale market of vegetables and spices. You can also contact different merchants for these raw materials, once price is fixed they will deliver goods to your Hotel on their own.

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Loan Against Hotel Business

In the Business of Hotels, the investment cost depends on the type of hotel you want to start. For basic needs you just have to arrange a place, buy raw materials and utensils and you are good to start your hotel business.

The price of utensils will cost you around Rs. 999/- to Rs. 1,00,000/- [$19 – $1599]. It even depends on the type of dishes you gonna serve to your customers.

To get a Hotel business loan, you can apply in any finserve service or bank. Many countries even accept Gold Loans on behalf of reference.

Before starting your Hotel, you will have to give the necessary information in your loan file, Such as your needs and how much money you require, the time of repayment, etc.

Then you have to deposit your file in the department. As soon as your loan is passed, all the money will be deposited into your bank account.

How to Advertise Hotel Business

Marketing a business is the most important thing to do in every business. If you market your Hotel properly, then you get a lot of profit from it.

To advertise your Hotel, you have two ways:

First of all, you have to contact your nearby shopkeepers and tell them that you have started a Hotel nearby.
If they need they want they can visit.
You can also ask them to provide you with feedback.

Once you get in touch with the shopkeepers, they will come to your Hotel.

Apart from this, You can list yourself on a website like Indiamart, Alibaba, eBay, etc. to start your business online.
After that people will come to your Hotel by themselves.

You can also create your Business Facebook page to start online marketing. Where you can post the best photos of your Hotel and put them on your page. You can also market your business on Instagram.

You can get a lot of benefits in marketing from Instagram. Because more than half of the world’s population is using Instagram. For this, you have to first create an Instagram account for your business.

After this, you can market your business by sharing your own Hotel’s photo.

To do offline marketing, you can get some posters and banners related to your business. So that the people of your local can know that you started the Hotel business.

Profit in Hotel Business

It is a bit difficult to estimate the net profit of hotel business because there can be equal loss along with profit in this business.

But if you are in a native place where lots and lots of tourists keep on visiting then you can easily earn millions of dollars per day.

In this business, you even earn from pre-booking facilities. If due to certain climatic conditions customers are unable to reach on time then you can charge some interest.

How to Start Hotel Business – FAQs

How to get license for hotels

For the license of the hotel, it is necessary to take the permission of the Municipal Corporation of your area.

What Services available in a Hotel

There are many facilities and room services available in a hotel such as: dining, late bath, TV, AC, room service, laundry, etc.

Hoping, you have completely read the article about How to Start Hotel Business.

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