Name- Deepak

18609025
M.B.A-2ND YEAR.
 One of the fastest growing sectors of the economy of our
time is the hotel industry. The hotel industry alone is a
multi-billion dollar and growing enterprise. It is exciting,
never boring and offer unlimited opportunities. The
hotel industry is diverse enough for people to work in
different areas of interest and still be employed within
the hotel industry. This trend is not just in India, but also
globally.
 Modern hotel provide refined services to their guest.
The customer or guests are always right. This principle
necessitated application of management principle in
hotel industry and hotel professional realized the
instrumentally of marketing principles in marketing the
hotel industry.
 Like most of the countries in world, India also has hotels divided in
different categories depending on their location, facilities, infrastructure
and amenities provided. All the star hotel in India are government
approved with continous control on the quality of service offered.
 Five star hotel:- the most luxurious and conventionally located hotel in
India are grouped under five star deluxe hotel categories. Five star
deluxe in India are globally competitive in the quality of service
provided, facilities offered and accomadation option. These are top of the
line hotel located mostly in big cities. These hotels are provided modern
facilities for accommodation and charge high.
 Four star hotel:- a rung below five star hotel are four star hotels these
hotels provide all modern amenities to the travelers with a limited budget
quality of services is almost as high as the five star hotel and above
categories. These kind of hotels are there for the travelers with limited
budget or the place which might not get the tourist traffic associated with
large cities.
 Three star hotel:- these are mainly economy class hotel located
in bigger and smaller cities and catering to the need of budget
travelers. Lesser in amenities and facilities, these hotels are value
for money and give accomadation and related services would be
stripped down version of higher categories of hotel but sufficient
to fulfill customer basic needs.
 Two star hotel:- these hotels are most available in small cities
and in particular area of larger cities. Catering to the backpacker
tourist traffic, these hotel provide all the basic facilities need for
general accomadaion and offer lowest prices.
 One star hotel:- the hotels with most basic facilities, small
number of rooms location in the far flung areas are grouped under
one star hotel category. these hotels are best when customer is
looking for cheapest accomadation option.
 Our hotel is situated in Shimla hardly 2 km away from the railway station.
 So firstly: what is your dream?
 If you don’t have a plan, you won’t know where you are going, and you’ll
find yourself constantly on the back foot, taking one step forwards and
two back.
 We are starting with hundreds of rooms, the costs to get started can be
substantial. Between the land, the equipment, the furniture, and the
licensing requirements, owners typically need a lot of capital to get
started. However, there is no industry average because the costs range
widely based on the value of the property and the building materials
used.
 To start a hotel business firstly we requires the capital, how much
investing our own and how much we are taking loan from bank on which
rate of interest and how much government giving subsidy.
 LAND: • COST OF LAND: this cost refers to the whole sum amount which is
to be paid to the owner of the land. The amount can be vary because it
depend on size of land
. BUILDING: • CONSTRUCTION COST: it refers to the raw building structure
of the hotel campus . and it would cost around 2.8 crores . this amount is
going to be incurred in the building. In this raw material cost and labour
wages is also covered
INTERNAL DESIGN COST : it refers to the interior designing of the structure
of the hotel where the architecture use their skill in making the good hotel
ambience . it will design the all the wall and the room in unique way to
attract the more customers .
PLANT AND MACHINERY: In the hotel industry we need some different
equipments and machinery for the ease to daily work . generator for the
power back up and the centralized air conditioned and the solar boiler
for the kitchen and oven . and the water teatement plant .
 Building Permit The National Building Code of India was prepared by the Bureau of
Indian Standards to unify the building regulations throughout the country.
 Business Registration It is recommended that a hotel be setup under an artificial legal
entity like company or LLP. By operating a company under an artificial legal entity, the
liability of the promoters with respect to the business can be limited and the business as
a going concern would be easily transferable to another person.
 Service Tax Registration Service tax is applicable on the accommodation services
provided by the hotel and food services provided by a restaurant in the hotel. Therefore,
hotels must obtain and maintain service tax registration.
 VAT Registration Value Added Tax (VAT) is applicable on the food served by a restaurant
in a hotel. Therefore, hotels must obtain VAT registration to comply with VAT regulations.
Since, VAT fall under the purview of the State Governments,
 Bar License: If the hotel operates a bar or serves alcohol in the restaurants, a bar license
will be required from the relevant authorities. Bar license is usually provided by
departments operating under the State Government. Hence, the requirement for bar
license varies from state to state.
 PUBLIC AREAS: • Paved outdoor parking area, lighted, direct
access from car with loading area.
 • Furnished open lobby area .
 • Reservation phone line to be answered by an individual.
 • 24-hour reception desk accessible by phone 24 hours from
inside and outside.
 • Secure deposit / storage area or device for safekeeping of
guest articles.
 • Elevator required if four or more floors
 GUEST ROOMS: • Daily housekeeping must be available. • Guest rooms
clearly identified with a name or number on or by the entrance door.
 • Keyed self-locking door, plus additional locking device (such as
deadbolt) and security device (such as security chain, swinging bar door
guard) or peephole.
 • One approved and functional smoke detector per unit. •
 Connecting Room Doors: All connecting doors must be equipped with an
effective keyed locking device to prevent opening from the other side.
 • Sliding Patio Doors: Each sliding door must be equipped with an
effective locking device. A secondary security lock is required on all
ground floor doors.
 • Windows: Each opening window in a ground floor unit must be
equipped with an effective locking device
 The hotel industry has to comply with health and safety regulations. But what really
distinguishes an excellent lodging facility from an average Joe are real concern for the
safety and comfort of the guests and employees.
 Smoke detectors Most hotels still insist on installing these basic safety equipment. While
there are advanced automated smoke detectors that are flooding the market now, the
traditional ones when kept in good condition can serve the purpose too for smaller hotel
units. Smoke detectors should be placed in corridors, storerooms, under stairways, guest
rooms, public areas and storage spaces.
 Fire extinguishers There is a reason why every property has a fire extinguisher. When it
comes to the hotel industry, it it assumes even more importance. Fire extinguishers are
made to control and extinguish small fires.
 • Class A fire involving ordinary combustibles • Class B fire involving flammable liquids •
Class C fire involving electrical equipment • Class K fire involving cooking oils and fat.
 CCTV cameras So you may be wondering why this made it to the list, when it is so all-
pervasive in the hotel industry. It is indeed true that all major hotels across the world are
equipped with CCTV cameras. However, there are still some individual units, nature
resorts (that attempt to keep all electronic devices away) that refrain from employing
CCTV cameras.
Thank you