A Hotel is a commercial establishment that charges payment to travellers for shelter, overnight accommodation, food, comfort, convenience, amenities or other services. In general, to be termed as a Hotel in India, an establishment must have a minimum of six guest rooms, at least three of which almost certainly have to connect private washrooms. This can be anything from standard buildings with many rooms to luxury resorts and villas. With the aim of providing contemporary standards of facilities and services available in the hotels, the Ministry of Tourism has formulated a voluntary scheme for classification of operational hotels which will be applicable to the categories like 5 Star Deluxe, 5 Star, 4 Star, 3 Star, 2 Star and 1 Star. The Hotel business is one of the most profitable and ideal business ventures in India.

If there is one industry that has picked up huge momentum in the past decade, it is the travel and tourism industry. With more and more people travelling, not just within the country, but also internationally for vacation and business purposes, the hotel sector has experienced a significant increase in the tourism business. As airline prices drop and the economy improves, corporate and personal travel continues to increase.

India’s travel and tourism industry has huge growth potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. The tourism industry is also looking forward to the expansion of E-visa scheme which is expected to double the tourist inflow to India.

As per the current trend, the demand for hotel accommodation is growing at 6% per annum. However, against that, the growth of supply is at 3% per annum. Most of the studies have estimated a gap of 150,000 hotel rooms. A greater need is being felt in the mid-market and budget hotels segment in which a shortfall of around 100,000 rooms is estimated. Since the construction of hotels is capital intensive with a long gestation period, the Government is making efforts to stimulate investments in this sector and speed up the approval process to attract private sector investments. The room demand in India is expected to grow by approximately 10 per cent over the next five years. Thus, there is tremendous potential in the hotel industry for someone looking to start a new business.

Buying a franchise is a safer and viable alternative to starting a business from scratch. Franchising refers to a business model where a franchisee can use franchising to start a business on a pre-established brand name of the franchisor. In a franchise business, the franchisor provides a developed way of doing business, ongoing guidance, systems and assistance in return for upfront commencement fee, periodic payment of royalty or for profit sharing arrangement. As a result, the franchise can predict its success and reduce risks of failure.

A Project Report is not only essential for obtaining financial assistance from Bank/ Financial Institution/Funding Agency but also the most important document either to participate in the development schemes of MSME Sector/ Department of Industries or in completing various time consuming government formalities connected with planning and commercial operation of the proposed business project.

This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation and Finally Printing the Report) to be presented as a Ready Project Proposal immediately thereby saving precious time of the promoter in the process of completing requisite formalities in anticipation of setting up the business project. Accordingly, following Project Templates has been deliberately left blank in order to facilitate customisation by the perspective entrepreneurs based on personal requirements and furnish necessary information on actual basis.

§ Project at a Glance                               :             To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/ Special Category)].

§ General Information and Location       :             To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and Occupancy under Ownership/Lease Agreement].

§ Promoter’s Background                        :             To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and Special Training Attended, if Any].

The Project Report/ Business Plan so presented include all the important aspects containing the following details;

CONTENTS

1. Project at a Glance
2. Highlights of the Project
3. Project Introduction
4. The Project Proposal
5. Prospect for Investment
6. Potential Target Customers/Market
7. Market Entry Plan
8. Process Details and Technical Aspect
9. Installed and Operational Capacity
10. Raw Materials and Consumables
11. Power and Utility
12. Tentative Implementation Schedule
13. Basis & Presumptions
14. Capital Investment Estimates with Detail Project Economics
15. Computation of Working Capital Requirement
16. Estimated Total Project Investment
17. Proposed Means of Project Financing
18. Estimated Annual Sales Turnover
19. Projected Profitability Statement
20. Calculation of Interest Amount
21. Depreciation Schedule
22. Term Loan Repayment Schedule
23. Debt Service Coverage Ratio
24. Break-Even Analysis
25. Projected Cash Flow Statement
26. Projected Balance Sheet
27. Internal Rate of Return
28. Pay Back Period

The presentation also supplements with important facts and useful information covering the areas as indicated below;

1.Basics of Hotel Business;

2.The Hotel Industry in India;

3.Requisite Facilities and Services for 2 Star Hotel Classification;

4.Statutory Permits and Business Licenses Required for Hotel Business;

5.Beginner’s Guide to Start Hotel Business;

6.Critical Success Factors in Hotel Business and

7.Smart Marketing Strategies to Boost the Bookings in Hotel Business.

ENCLOSURE: Revised Guidelines for Approval of Hotels at Project Stage and Star Classification/ Re-Classification of Operational Hotels, Ministry of Tourism, Govt. of India.

Thus the information provided would help in identifying in advance the infrastructure/resources required for the Project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an entrepreneur.