Do you want to start a hotel business? If so, find here a list of lucrative hotel business ideas that can fetch you high-profit margins.
The hotel business is one of the most important components of the service industry and 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.
List of Top 15 Hotel Business Ideas
The idea of starting a hotel business can be a very profitable venture. It may require investments, but if you plan properly and work hard, you will surely get high returns.
According to the World Tourism Organisation UNWTO,
“Growth in international tourist arrivals and receipts continues to outpace the world economy and both emerging and advanced economies are beneﬁting from rising tourism income. For the seventh year in a row, tourism exports grew faster than merchandise exports, reducing trade deﬁcits in many countries.”
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.
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, spa, 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, and iPads, 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.
3. Bed & Breakfast
You can rent a room of your apartment for guests and provide them with the bed and breakfast service for charges. 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 the 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 multi-national 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 on rent and run like 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 mostly located beside the highways providing accommodation for the long drive travelers. These are mostly individually owned.
11. Serviced Apartments
A serviced apartment is fully furnished apartments 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 service 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 called Condotel, hotel-condo, or a 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 a full-service vacation home. 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 is 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.
The hotel business is a business of idea, creativity, and planning. You have to have a good sense of people’s choices and desires, their comfort level. Moreover, you have to have an eye for details and a great determination to succeed. We hope these hotel business ideas will help you in developing your hotel business in your preferred slot.
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 business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.