In the recent few years, India’s hospitality sector has witnessed consistent and robust growth. Especially with the Union Budget 2019 ruling in favour of the hotel industry, with tax rate cuts, the growth in this segment has been consistent.
Nonetheless, setting up a new hotel business, especially for budding entrepreneurs, can be a gruelling task.
While several pain points can be encountered while setting up the business, financing it still remains a major cause for concern.
So, how can one arrange for the substantial capital required to set up this business?
Well, by availing a loan for hotel business in India, of course. You can easily avail the advance via a pledge of your asset. Advances like gold loan come as a handy option when to secure finance for your hotel business.
How can Availing a Gold Business Loan Aid Small Entrepreneurs?
While securing funding for business leads one to consider loans automatically, availing credits against gold with attractive hotel loan interest rates in India can be exceedingly beneficial in this scenario.
There are several reasons to back it!
- It is a secured, high-value loan
Starting a hotel requires significant funding right at the onset, alongside the ongoing recurring costs of the business while it is running. In this case, you can opt for a business loan against your gold, without having to worry about diluting the equity of your asset.
Rupeek Fintech Pvt. Ltd. offers a high LTV on your gold against convenient hotel loan interest rates in India. This makes for an easy way to secure finances for your hotel business, especially if you are a budding entrepreneur.
- There are no end-use restrictions
A gold business loan has no end-use restrictions. It can be utilised to fund any aspect of your business, whether for making a substantial payout for construction or merely purchasing novelty items. This advantage proffered by a gold loan makes availing it all the more lucrative.
- Immediate loan sanction
The process of loan sanction is initiated immediately after one applies for the loan. To start the process, you will have to first request a gold loan through Rupeek’s app or via call. Next, a loan manager is appointed to visit your house and complete the KYC registration and verification. After completion of the process and gold valuation, the loan amount is transferred directly to your bank account. The entire process is done within 30 minutes. Your gold, in turn, is safely deposited at the vault of your nearest branch.
- Safe and hassle-free financing
When it comes to financing your business, gold loan for hotel business in India is perhaps the safest option available. Your gold is stored safely with assured returns. Further, you can choose optimal loan tenure of 6 months, which can be extended up to 1 year. This loan also comes without any hidden charges, making it a lucrative and hassle-free proposition all round.
With such benefits and more, securing a gold business loan can be extremely beneficial for budding entrepreneurs to set up a hotel business in India.
While the reasons are many, it is also crucial to analyse the trials and tribulations that you have to undergo to start your own hotel business in the country.
Setting Up a Hotel Business in India – Planning and Investment
With tourism tracking record growth in India, there is no dearth of demand for hotels in the country. However, like every other business, establishing a new hotel amidst the existing competition can be arduous, and not to mention, extremely expensive.
These are the major areas of concern which need significant planning and investment on the business owner’s part while setting up a hotel –
- Planning hotel logistics
One of the first concerns of opening and operating a hotel is planning and financing the logistics around it. Ideally, the hotel site should be near railway stations or airports, to ensure guests have convenient conveyance nearby.
If the hotel is to be located outside the city, one must ensure that it is well connected to the main city.
- Investing in the land
Before investing in the land to set up a hotel, one must have a clear idea of what type of hotel they want to set up. Whether a boutique hotel or an executive one, the area acquisition must be thought about carefully before investing in the land. Normally, a facility with 70 to 120 rooms can require an area of about 10,000 to 60,000 square feet.
- Acquiring hotel licenses
Acquiring licences is one of the major pain points when it comes to setting up a hotel business. With several archaic requirements still in place for starting a business in India, one has to literally acquire several licenses to get their hotel up and running.
Some of these licensing requirements adhere to the sections of lodging, water, liquor, sewage, food, pollution control, etc. Alongside these, the hotel area has to undergo verification of elevator operation, fire codes and such other safety measures.
- Hotel staff recruitment
Running a hotel is hardly a one-person job. However, searching for and recruiting competent staff can be quite a long drawn process. In this regard, one should put special emphasis on the roles of managers, customer care executives, housekeepers, cleaners, washers, waiters and so on.
A hotel cannot be put under the customer’s radar unless one adopts a comprehensive marketing strategy for their business. While billboards and handing out pamphlets remain the ever-trusty gimmicks, in the twenty-first century, it is also important to invest in setting up a hotel website and utilise the far-reaching capacity of social media to attract clients.
These are merely some of the major hurdles that one must undertake to start a business. There are about a thousand others that require minute planning and a substantial investment.
Nonetheless, Indian entrepreneurs have plenty of untapped potential when it comes to availing capital for setting up a business. Particularly, availing a secured advance against gold to fund their business ideas is one of the areas which has only begun to gain momentum in the country. However, with Rupeek offering a gold loan for hotel business in India, securing funding for setting up your dream hotel has become significantly easier!
Nonetheless, it is first extremely crucial to set a budget for your hotel before undertaking the venture. After all, financing a business can work effectively only when one has a definitive plan in place!