The hospitality industry in India has developed into a multi-faceted sector over the past few years. It has an average annual rate of 7.5% and is forecasted to value 18.36 Lakh Crore by 2025. With the remarkable growth trajectory of the tourism sector at 3.9% per annum, investing in the hospitality industry will definitely prove to be a profitable option for the coming years.
Considering the current market scenario, the average occupancy rate of hotels has surged to 66.6%, at its highest since the last decade. Therefore, incorporating a master plan and infusing money in this business with hotel financing loan is a smart choice.
Here are a few useful steps from experts’ which can help you to grow your hotel:
Step 1: Create a growth plan
The cornerstone to any successful business is a well-defined plan. Conduct a market survey and map a plan accordingly. Understand what your customers demand and what you lack. You should hire the best brains to give you actionable effective ideas to run a successful hotel business.
Step 2: Remodeling is another relevant move
Renovation and remodeling of an existing hotel set up can take your business to the next level. Add state-of-the-art infrastructure with high-end amenities to attract both the new and existing customers. These changes will require some serious financing. There are NBFCs which provide hotel financing that can range up to Rs. 30 Lakh.
Step 3: Expand to a new location
Take your hotel business to another city; keep an eye on properties at strategic locations, and buy at the best price using a business loan. These loans are unsecured and you don’t need to pledge collateral for the loan amount disbursal. You have to select a place which will offer a broader consumer reach beyond the peak seasons. Seasonal demands will not generate enough revenue to sustain the business annually. So, make sure you know how to
expand your hotel to another city according to your business requirements.
Step 4: Hire skilled resources
Starting with capable front desk staffs to hotel keepers, master chefs to a dynamic sales team, every employee is an asset. Top business houses put as much emphasis on employee recruitment as they do to corporate branding. Recruiting the most efficient candidates is no doubt a large investment but it definitely provides a brand value to your business.
Step 5: Good marketing
To grow your business between your peers, you must allocate a separate budget for a distinct marketing team. Promote and take your business online to reach out a larger consumer base. Add offers, discounts as and when required. Get associated with various online travel services.
With the surging demand in the hospitality industry, financial institutions are offering investor-friendly financial solutions to the hoteliers. NBFCs provide customized business loans for hotel financing with attractive rates of interest. They also provide tailor-made pre-approved offers on business loans, personal loans, mortgage loans and other financial services and products.
These offers make loans easier to avail and save a lot of time. You can check your pre-approved offer by submitting a few necessary details on its online portal.
These business loans can also come with a Flexi Loan facility. With this feature, you can withdraw as much funds you need from the disbursed amount and pay interests only on that utilized amount. Moreover, you will only pay the interest part as EMIs. Principal repayment can be done at the end of the tenure.
Availing a flexible business loan and investing it now can be a smart choice. Make the best of these financial solutions for a better future ROI.