Do you want to start a hotel business? If so, find here a list of lucrative hotel business ideas that can fetch you a high-profit margin.
The hotel business is one of the most important components of the service industry and is closely associated with both the travel and hospitality industry. With the continuous rise in the global market share for the last 5 years, (as per statista.com), the hotel business is a good option for you to earn sustainable profits in the years to come.
A hotel can be any commercial structure that charges money to travelers for their overnight accommodation. This can be anything from standard buildings with many rooms to luxury resorts and villas. As airline prices drop and the economy improves, corporate and personal travel continues to increase. So, you can start your hotel business by choosing any type or standard.
The idea of starting a hotel business can be a very profitable venture. It may require reasonable investments, but if you plan properly and work hard, you will surely get high returns.
Now, let us go through some of the best hotel business ideas which would create a niche for you and add to your profit margin.
List of 30 Hotel Business Ideas
1. Luxury/Five Star hotels
A Luxury Hotel provides a luxurious accommodation experience. Their target clients are top business executives, entertainment celebrities, high-ranking political figures, and wealthy clientele. Luxury hotels also provide upscale restaurants and lounges, swimming pools, spas, valet, concierge services, and also private dining facilities.
This business is also a high-investment one.
2. Business Hotels
The largest group of hotel types are business hotels and they are built to serve business travelers. Business hotels are usually located in business districts. Apart from lodging, these hotels also offer conference rooms, ballrooms, Wi-Fi, business centers, rental or complimentary computers, catering, and dedicated business concierges.
Though business hotels primarily serve business travelers, many individual tourists and small conference groups come to these hotels. Guest amenities at business hotels may include complimentary newspapers, morning coffee, free local telephone calls, breakfast, etc.
This hotel business requires high investment for entrepreneurs, so the business is usually done in partnerships.
Read More: How to Start a Profitable Hotel Business
3. Bed & Breakfast
You can rent a room in your apartment for guests and provide them with the bed and breakfast service for a charge. This is quite a common business idea in large cities and quite profitable.
Check our detailed guide on starting a bed and breakfast business.
4. Middle-Range Hotels
These kinds of hotels are the perfect combination of comfort and value for money. They do not provide elaborate services like luxury hotels, but they have adequate staff, comfortable rooms, uniformed service, food, and beverage room service, in-room entertainment, and also Wi-Fi.
These kinds of hotels are the most sought-after hotels by tourists worldwide, who prefer them for comfort as well as reasonable pricing. This is quite good as a hotel business idea.
5. Budget Hotels
These hotels provide clean, comfortable, safe, low-cost rooms that meet the basic need of guests. Budget hotels appeal primarily to travelers who just want a room with minimum services and amenities required for a comfortable stay, without paying an additional cost for other luxury facilities.
Budget hotels are popular all over the world and among the most popular hotel business ideas.
6. Resort Hotels
Resort hotels are luxury hotels that are meant primarily for vacationers. They are usually located near special attractions such as beaches and seashores, scenic or historic areas, etc. Resort hotels provide enjoyable and memorable guest experiences like good scenery, golf, tennis, sailing, skiing, and swimming that encourage guests to come back for another visit.
These hotels are usually exotic and quite expensive to start and run. However, once popular, they give very good returns.
7. Eco Hotels
These are certified green and clean hotels that are specially designed to minimize their impact on the environment. Eco hotels are known for energy efficiency and for the use of renewable energy sources such as solar or wind power.
In this age of environmental pollution, the concept of eco-hotels is very popular and among many profitable hotel business ideas.
8. Boutique Hotels
A boutique hotel is a small hotel usually set in unique settings with expensive accommodations. As a business idea, they have individualized Unique Selling Points (USPs). They generally have a smaller amount of rooms than their larger counterparts.
In recent years, boutique hotels have emerged as one of the most preferred guest accommodations all over the world. The popularity of the boutique concept has prompted some multinational hotel companies to come up with the concept of boutique hotels.
These hotels are usually found in resort destinations with exotic amenities such as electronics, spas, and yoga and/or painting classes.
9. Guest House/ Holiday Home
A guest house can be a low-budget inexpensive room or a luxury apartment. You can use your apartment as a guest house and earn profits. A holiday cottage also called a holiday home, or vacation property is an accommodation, typically a house that is used for vacations.
Such properties are usually small homes, such as cottages, that are given for rent and run like their own houses. You can develop a guest house or run an agency for booking a guest house or holiday home.
Motels or motor hotels are types of hotels with a parking lot and are mostly located beside the highways providing accommodation for long-drive travelers. These are mostly individually owned.
11. Serviced Apartments
A serviced apartment is a fully furnished apartment available for a short-term or long-term stay. They provide hotel-like facilities such as room service, housekeeping, a fitness center, a laundry room, and a recreation room. Serviced Apartment hotels provide long-term or permanent accommodation for the guest.
If you have a surplus apartment, you can think of renting it as a service apartment.
12. Airport Hotels
Airport hotels are located near the Airports. Often they provide shuttle services to and fro airports. Their target clients are mainly airline passengers with overnight travel layovers or canceled flights and airline crews or staff.
13. Hostels & Hostals
The words sound similar, but the facilities and service patterns are different. Hostels provide shared and cheap accommodations where guests can rent a bed, usually a bunk bed, in a dormitory and share a bathroom, lounge, and sometimes a kitchen.
Rooms can be mixed or single-sex and private rooms may also be available.
Hostal refers to a type of family-run establishment typically common only in Spain and a few other Spanish-speaking countries. This type of hotel normally has a bar, restaurant, or cafeteria where drinks and food are sold to guests and locals alike. They are mostly family-run businesses that are closely related to the local community.
14. Condo Hotel
A condo hotel is also known as Condotel, hotel-condo, or Contel. It is a building that is legally a condominium but which is operated as a hotel, offering short-term rentals, and along with it, there is a front desk. Condo hotels are usually large, high-rise, luxury hotels that are positioned in major cities and resorts.
These hotels have apartment houses owned by a customer as full-service vacation homes. When they are not using this home, they can allow the marketing and management team of the hotel chain to rent and manage the apartment as it would any other hotel room.
15. Self-Service Hotels
Self Service hotels are complete apartments with a living room, sitting area, and kitchen. The guests take care of themselves without external support.
There is no room service here. However, there are laundry and car rental services provided to the guests. Due to its reasonable rates, travelers prefer these self-service hotels.
You can start a self-service hotel business by building a number of bungalows with basic amenities. You have to get the necessary permits to start the business. This hotel business is capital-intensive. However, due to its popularity and high demand among travelers, it will be easier for you to earn high profits.
16. Create a Hotel Booking Website
Though the hotel booking business is competitive, still there is a wide scope for new startups to enter this market. You can start a small local hotel booking website and then expand as and when your online booking platform gets popular.
17. Provide a Car Rental Facility
One can start a car rental business providing transport facilities for people staying in hotels. Most business travelers and tourists prefer car rentals for their travel needs.
18. 19. Open a Guest House
Another very popular hotel-related business idea is a guest house. There are many people who prefer staying in guest houses in traditional hotels.
19. Start a Holiday Home
The holiday home is particularly a profitable hotel business in tourist destinations. One can buy or lease out an existing hotel in a tourist location and start a holiday home business.
20. Start Hotel Cleaning Business
There are many hotels that outsource cleaning activities to a specialized cleaning company. One can start a specialized hotel cleaning business.
21. Hotel PR agency
People having the necessary experience in the public relations industry can consider starting a specialized Hotel PR Agency. There is a huge demand for PR agents in the hotel industry as a good reputation and positive image is needed for every hotel-related business.
22. Rent your Space with Airbnb
If you have a space for accommodation, listing the property with Airbnb is a profitable hotel-related business idea. Airbnb is a property rental marketplace that has become hugely popular among tourists in the present day.
23. Provide Security Services to Hotels
There is always a big requirement for security personnel in running a hotel safely. One can start a niche security service agency catering to specific hotel security needs.
24. Open a Niche Hotel Recruitment Agency
If you have some experience in the recruitment industry, think of opening a recruitment agency catering to the manpower needs of hotels. Hote business is a manpower-intensive business and huge personnel is required to run it. If planned properly, there will be no shortage of customers for sure.
25. Generate Customer Leads for Hotels
Most hotels look for people who can provide information about customers looking for hotel booking. It is more in locations that are offbeat and a little away from the mainland. Most hotel owners pay a hefty commission if your lead gets converted.
26. Wellness Retreat Facilities
Tap into the growing wellness and health tourism trend by creating a wellness retreat. You can conduct yoga, meditation, organic food, and holistic wellness programs.
27. Pet-Friendly Hotel
There has been a growing demand for pet-friendly accommodations. To meet this demand, you can launch a pet-friendly hotel that welcomes guests and their furry companions.
28. RV and Camping Site
There is a big demand from outdoor enthusiasts for accommodation. You can tap this market by creating an RV park or camping site with facilities for recreational vehicles and tents.
29. Art Hotel
You can start an art hotel combining hospitality and art. It can be a unique theme-based hotel that can provide an immersive cultural experience by promoting local artwork.
30. Winery or Vineyard Resort
If you have access to a vineyard, consider starting a winery or vineyard resort. You can offer wine tasting, tours, and accommodations and make good money.
The hotel business is a business of idea, creativity, and planning. You have to have a good sense of people’s choices and desires, and their comfort level. Moreover, you have to have an eye for detail and a great determination to succeed. We hope these hotel business ideas will help you in developing your hotel business in your preferred slot.
Frequently Asked Questions
What factors should I consider before starting a hotel business?
Some of the key considerations while starting a hotel business are location, target audience, budget, competition, legal regulations, and unique selling points.
How can I finance my hotel business?
You can explore options like personal savings, bank loans, investors, or partnerships to secure funding.
Do I need a specific qualification to start a hotel business?
While a hospitality management degree can be advantageous, it is not mandatory. Factors like experience, business acumen, and a customer-focused approach play key roles in the overall success of any hotel business.
What legal formalities are involved in opening a hotel?
You need to obtain necessary licenses, permits, and clearances from local authorities, including fire safety, health, and hospitality licenses.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.