Quick Guide to Investing in a Hotel Franchise

1. Quick Guide to Investing in a Hotel Franchise Looking to invest in a hotel franchise? You have come to the right place. Today, we shall look at all the factors you will need to consider before investing in a hotel franchise. Hotel franchises are on the rise in India. With so many businesses and IT hubs and tourist spots and cities and towns, the hotel and tourism industry is booming. There are hotels in almost every small town and even larger villages, especially if they are close to religious or tourist attractions. Almost all major hotel chains from around the world have invested huge money in India and are continuing their investment. This is the right time to enter the hotel industry in India. Let's look at the factors you will need to consider before investing in a hotel franchise. www.frantastic.in 1

2. 1. Location As it is said for any real estate project, location is the most important factor. The location of the hotel will define the needs, the expectations and the type of hotel that you will need to invest in. If you are looking at different locations, you must choose according to your requirements and business plan. Below are listed the types of locations popularly used as hotel hot spots, read the requirements and the demands of each location carefully and choose what suits you best. www.frantastic.in 2

3. a. Economic hubs Various cities in India today are economics hubs, either through a booming financial market or an industrial zone or the fast-growing IT and digital sector. Hotels in these regions cater mostly to business clients and often are regarded as business hotels. These hotels would be built closer to the main economic center or close to the airport. There are many such cities in India today, for example, Bangalore, Hyderabad, Gurgaon, Pune, etc., which dominate the IT or specific industries in the country. Travelers to the hubs are usually corporate employees or clients. Hotels built here usually cater to them with the exception of the odd tourist or family staying at the hotel. These hotels would need to built keeping the audience and certain factors in mind, we will read more about it later. b. Tourist Spots India has an abundance of tourist spots and cities. Multiple cities in Rajasthan, Gujarat, Kerala, etc. are swarmed with tourists throughout the year. Other than cities like Jaipur, New Delhi, Kolkata, Agra or Mysore, India also has many smaller tourists spots, which do not qualify as cities but still attract an equal number of tourists. Tourists attractions like wildlife sanctuaries or the beaches along with the Indian coastline, Ajanta and Ellora caves, etc. are some examples of tourist spots lying outside of cities. Such hotels usually cater to tourists either in families or as groups of friends or unmarried singles. These hotels would need a different configuration as compared to the business hotels. c. Religious Spots There are innumerable religious spots of importance in India. from Sanchi in Bihar to Khajuraho in Madhya Pradesh to Tirupati in Tamil Nadu to Dilwara Temples in Gujarat and Rajasthan. These are just a few of the many that exist in India and each is thronged with worshippers all year round. These devotees travel from far and wide and need a place to lodge at. They might not be as demanding as other tourists and the hotels built here would require different specifications. These were some of the popular hotspots for hotels today, other than these hotels are also built for general use in all cities and even in small towns for visitors. Now, let's look at the different configurations required for the different kinds of hotels. www.frantastic.in 3

4. 2. Hotel Configuration As we have already seen, different hotels in different locations would be built very differently and for different purposes. Let's look at these. www.frantastic.in 4

5. a. Business Hotels Today, these are the most common in cities. These hotels cater to corporate employees and clients, who do not have much time to leisure around in the hotel and want quick and good service. The property of the hotel does not need to be too big and one cannot even hope for a huge property in the middle of a bustling city. You will have to invest in basic to medium facilities like a gymnasium and a swimming pool. But one of the most important aspects of the hotel would be training the staff. The staff needs to be trained according to the highest standards so that the guests are appeased. b. Tourist Hotels These are the epitome of luxurious hotels. You can invest in big properties and add as many facilities and luxuries as you desire. This is where people come with free time on their hands and spend their time and money vacationing with their families and friends. You can invest in a huge resort with acclaimed gourmet chefs and a plethora of facilities and activities. c. Religious Site Hotels These hotels need not be as expensive to invest in like the others. People from all strata of society come here and are usually not looking to spend too much leisure time at the hotel. People visit a religious site with devotion and are not expecting too much luxury. If you are looking at minimum investment then this might be the right option for you. Even smaller hotels in cities, tourist spots or small towns can be built with less investment. You need to gauge your costs and plan your budget and choose the ideal location for your hotel to prosper. www.frantastic.in 5

6. 3. Employee Training While starting a hotel franchise, the training of staff is a big factor that can help your hotel in its success. Compare different brands' assistance in the same. Some brands will provide you with some trained staff initially, which can be a great help for a new hotel. 4. Break-even Period Hotels take some time to break-even and might only reach full occupancy in peak season. Speak to the parent company and other franchise owners and create a budget with enough working capital in order to run your hotel till it www.frantastic.in 6

7. can pay for itself. Hotels have huge maintenance costs and salaries to pay for and so the break-even target needs to be planned from the beginning. 5. Marketing If you are starting your hotel, you will need to tie-up with online travel portals and other channels. Today's generation rarely uses any other medium due to the ease and discounts provided by the online portals and their likes. Securing a deal with online portals shouldn't be too difficult, they are always on the lookout to add more properties to their repertoire and if you are meticulous, you will be able to crack a deal, which gives you good profits. Other than this you will have to employ regular marketing methods too but none are as effective today as online portals. Hopefully, you are even better prepared now and have obtained more clarity regarding the type of hotel you want to invest in. If you still have any uncertainties, do not hesitate to speak to our representatives. Investing in a hotel is bold but it is also a highly rewarding move. If managed well, the hotel will provide you with a steady flow of income for years to come and will boost your business. www.frantastic.in 7