Homestay Project Report



The Homestay Project Report includes a comprehensive plan for setting up a homestay business in India. It contains a financial analysis along with the details of the permits and licenses you will require to begin this startup. If you want to start a business, and you have a good income then it is the best startup for you. If you want to grow your business in a short time, you can start this business as it has great market potential.

You can easily start a homestay business In India if you love hosting and have good enough space in your arena. You can earn money using just a bed and offering breakfast.

This is a running trend in India that people living near or in the hill stations are starting their homestay businesses and making good money. You just need to have a spare bedroom in your home or flat and some good furniture to make money in this business.

If you have a 2bhk or 3 bhk apartment, then it is like icing on the cake. You can bring it on the market online platform and charge Rs 1500 per night. The more rooms you have, the more money you can make.

Homestay Business Project Report

Homestay Project Report is well-written by experts and designed to provide you with complete details about this profitable startup. You will get the information in detail in this project report. You can download it by making a nominal payment and use it as a roadmap throughout the set-up journey. Whenever you face any problem in settling down with this business, you can look into the project report for solutions to all your troubles. 

Homestays or Guest houses are a concept that is becoming widely popular these days. If you own a house having space on your property you can also earn well by starting this business. The homestay concept is simple, and you can now rent out your vacant property for a short time to the guests in your city.

It is different from a hotel as you share the house residing with a guest. You may or may not provide room service or restaurant service. You need not invest money in heavy infrastructure and thus it is easy for your pocket to start this business.

What is a Homestay Business?

To explain your homestay in an easy language I would say that it is a homely accommodation that you provide to the visitors in your home. You are the host, and the visitor is your client or guest.

The room that you rent out to the visitor is a spare room of your home. As a host, you can offer them food as well or give them a spare kitchen to cook their food. It is a bed and breakfast concept. The cost of investment and labor is low as space is already there and you can do a bit of modification and give your home an attractive look.

How to Download Homestay Business Project Report 

Gone are the days of waiting at the door of the expert, as a result, get your homestay start-up sample report in hand, by instantly downloading the report in pdf document format.

First Step            –   Click Add to Basket>>  Check Out  >>  Payment

Second Step       –  Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.

Benefits of a Homestay Business

You can be in a win-win situation when you become a homestay business entrepreneur. It is profitable both for the host and the visitor. Visitors can save money and you can make money.

Homestay business is advantageous to the visitor in the following way.

  • They can get homely accommodation in a new city at a reasonable price.
  • If a visitor stays in the home of a local of the city, he might not find it difficult to manage things in a new city.
  • The visitor can know about the culture in a better way than the place he is visiting.
  • A visitor not only gets a professional service but also is driven by the emotions that are seen in the hospitality of the host.

The host may benefit as follows.

  • You can start a business homestay by investing in low-cost capital.
  • You can hit two birds with one stone by renovating your house. It gives your house a new look and you get the opportunity to start a new business as well.
  • As a visitor, choosing your homestay over a hotel for a natural ambience doesn’t demand much luxury from you.
  • Once you enter this business you can attract more visitors and earn more profits in the later months.

How do I start a homestay business in India?

You will have to keep a few important things in mind when you start a homestay business in India. The most important among the necessities is the licenses. You need to read below to know how you start a homestay business in India.

Give an aesthetic look to the spare room of your house. Do not over-decorate the room. It should look sophisticated. Simplicity is the beauty.

You should keep your homestay registered with the Ministry of Tourism. You can get the license after you register with the Ministry of Tourism. Once you get registered, you can start your business after availing license.

You will have to register yourself with the most popular websites. You can provide information to the visitors with the help of websites. You will get many customers from websites.

Basic amenities like clean drinking water facilities, clean and hygienic toilets and rooms, better electricity supply, or good internet connections can be a major attraction. The room should have proper disposal of garbage.

You should charge a reasonable amount from the visitors. The visitors can help you by giving genuine feedback. You can follow up the reviews and make changes in your homestay accordingly.

You can promote your business on social media and other platforms. You can add eye-catching pictures of your homestay on social media.

How can I get a license for my homestay business?

The main legal authority for this business is the Ministry of Tourism. It can provide you license for a homestay establishment. You can get registered under the Ministry of Tourism and then avail of this license. You can get your homestay business categorized as gold, silver or diamond. The classification is based on the service and accommodation you provide.

The committee of regional classification checks the facilities and services you are offering.

Once your business gets approval from the Ministry of Tourism, you need to get short-term training in hospitality.

The owner must reside in the homestay ambience to avail of the license.

As a host, you will have to follow a certain set of standards. If you don’t abide by it, the Ministry of Tourism can even cancel your license.

If you make any changes to the facilities you are offering, you must inform the Ministry of Tourism within 30 days.

Once the formalities are done, you can get a recognition certificate.

Documents needed to apply for a license for homestay business.

  • Building Ownership proof or lease of building document
  • Location plan to show access for the building from major city roads.
  • Elevation and plan of the building.
  • Photographs of the interior of the location.
  • Police Clearance Certificate
  • Local authority permissions to start this venture.

Investment Required for Starting a Homestay Business

Two major factors affect the cost of investment in a homestay business. It is the location and the property you have. The cost of transportation will also affect the business. The amenities that you provide play a major role in expenses. If you are converting your existing house into a homestay, then it can prove to be a significant investment.

The cost of investment for a homestay business can vary depending on the land you have, the location, the service you offer and a lot many. Break-even in this business is not of major concern as your house is worth sharing with the visitors and making money.

Online Platforms that Promote Your Homestay Business

The best way to start this business is to list your property on online platforms like Airbnb, Trip Advisor or You can advertise your business on social networking handles like Google, Facebook, Instagram etc.

You need to upload identification documents and property-related documents to sign up your business. You need not pay anything to get your business listed on these portals, you will just be paying a commission of 3 to 6% on each booking to these online platforms.

You have no restriction on the space that you need to let out. Be it a single room or a complete villa, you can rent it out as per the need and number of visitors. People are earning good by becoming full-time hosts to visitors in double-storeyed or triple-storeyed buildings.

You can keep one floor for your use and the other can be let out as a homestay to visitors or guests. Online platforms like Airbnb help you set your rates. You can get an idea about the charge you can keep for your space from online platforms by visiting their list of check prices of your area.

Keeping the rates is not a problem. The owners can keep the rates depending on the season and the demand for space by visitors. You can lower the price of homestays when you don’t get many visitors and increase the price when the number of visitors increases.

During off season price of stay can be reduced and during festivity, it can be increased. It can also be increased during holidays time.

As per our research, bookings are expected to drop during winter and during this time if you don’t find many visitors, you can use your space for your use. You can even block homestay during these days in advance only.

But remember, before you enlist, make sure you set all the permissions, and registrations and fulfil all legal requirements of the homestay business in India.

A new concept of Airbnb has been introduced that has brought well-defined rules that define whether your homestay qualifies as a commercial set-up or not.

The rules that I am talking about may vary from city to city and you can check out the exact requirements by visiting the nearest tourism office of your city. The official there will show you all the details about this business.

Cost of Setting Up Homestay Business in India

You can set up a homestay business in India by spending around Rs 50,000 to Rs 1 Lakh.

One Time Investment

There are certain one-time costs that you need to incur to set up this business. You need to arrange basic furniture like a bed, chair, table, linens, etc and it will cost you around Rs 10,000 to Rs 15,000.

Then you need to arrange for the basic amenities like towels, cutlery, water kettle etc and it adds to Rs 4,000 in the cost.

There are some optional amenities that you can arrange like AC, air purifier, cooler, geyser etc and it adds cost of Rs 30,000 to Rs 40,000.

Monthly Expenses Of A Homestay

Electricity or internet bills cost you around Rs 5000.

Laundry cleaning costs you Rs 5000.

Groceries that you buy for breakfast and other basic items like toiletries, coffee pouches, milk pouches, pepper and salt etc. This costs you around Rs 2,000.

You will also have to hire staff to help you with small tasks or manage your homestay. You can hire a full-time assistant to host guests in your homestay.

You need to pay a salary of around Rs 15,000 to the assistant.

Income Potential

Your income will completely depend on the space you are letting out, the amenities you are offering, and your location. A single room with necessary amenities can charge Rs 1500 to Rs 2000 from the guests.

If you own a villa or offer a complete floor on let out, you can make more money and get more bookings as your space is large. You can charge Rs 1800 for one good room. You can grab more bookings if your let-out space is more.

You can earn Rs 50000 per month if your visitors are frequent and more in number. If your house is near the tourist spots, then you can charge more price for the room.

You can add the amenities mentioned above and earn more. You can also offer a functional kitchen to tourists as a lodging option. You can grab more bookings from foreign tourists if you keep an air purifier in the room.

As an idea, for an average booking of 15 days, in a month, of one room, you can make Rs 20,000 easily after deducting operational costs or commission of online platforms.

Drawbacks of homestay business

You get lean periods which means some days there is no business in a homestay with which you make money, but you have to bear the expenses.

If it is a tourist season you make good money but in hot summers or chilly winters, people prefer to stay home. If your homestay is in Hill Stations, you get fewer visitors in winter.

If your income completely depends on this business, then you must plan your expenses wisely.

Contents Of Homestay Project Report
Sr. No.Particulars
1Project at a Glance
2Highlights of The Project
3General Information and Location
4Promoters Background
5Project Introduction
6The Project Proposal
7Prospect for Investment
8Potential Target Customers/Market
9Marketing Strategy
10Critical Success Factors
11Process Details and Technical Aspects
12Process Flow Chart
13Quality Specifications
14Installed and Operational Capacity
15Raw Materials and Consumables
16Machinery Power and Manpower
17Tentative Implementation Schedule
18Basis & Presumptions
19Capital Investment Estimates
20Projected Profitability Statement
21Term Loan Repayment Schedule
22Debt Service Coverage Ratio
23Break-Even Analysis
24Permits and Business Licenses
26Concept of Homestay
27Homestay Activities
28Types of Homestays
29Product Line of Homestays
30Benefits \of Homestays
31Homestay Business Opportunity
32Homestays As A Source of Micro-Entrepreneurship
33Steps To Start Own Homestay Business
34Smart Tips To Follow In Homestay Business
35Listing Homestay Business On Airbnb
36Risks & Challenges In Homestay Business
37Homestay Classification Scheme in India
38Homestay Registration Procedure in India
For whom is the Homestay Project report format useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who wants to self-study

In addition to those who want to prepare project reports themselves.

Sample Project Report Format of Homestay Business Project Report

In our project report format, we cover technology details, diagrams, flow charts etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which are necessary for the Investor/bank.

You will get the report data from our Project Report in PDF format which you can use easily. You can also modify the information according to your needs. One will be able to access the data easily according to your requirements. Additionally, you can easily convert the data to PDF format.


Homestay is a great business if your house is big. If you have fewer family members then also this business can turn out to be profitable. The cost of investment is low, and you can make a good income from this business. You need not leave your home to make money and you can earn it by staying home only.

The Homestay Business project report is designed for an individual enthusiastic about investing in this business and willing to generate extra earnings with his investment in this business. The complete set-up requires a detailed project report and business plan that can tell the entrepreneur in detail about the market research and a lot more. Our project report contains all the necessary details that you need to know before setting up your business. It will help you in assisting to write down the project report and applying for a bank loan.

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Frequently Asked Questions On Homestay Business Project Report
How do you start a homestay business in India?

You can easily start a homestay business in India by exploring the market to know the best location in your area. You will also have to study the homestay project report to get every important detail about this business.

What are the requirements to start homestay business in India?

You require a well-written homestay project report for this business. This you can get from our website in a gist of time. It contains every significant detail about this startup that can benefit you in making wise decisions. You will also have to arrange space and buy pieces of equipment that we have listed in the project report.

Where can I get homestay business project report for bank loan pdf?

Well, you can explore the best homestay project report PDF on our website and take help by checking out all the important details for your new business from it. It will serve as a guide using which you can write your project report and submit it to the bank to avail a loan for your new venture.

What is the right project report on homestay business for a bank loan?

We have clearly stated the right format for this start-up in our project report. You can check out the project report details by downloading it after making a nominal payment to us. We have covered every important aspect of this venture in our report.

Can I download homestay project report pdf in the format of excel or Word file?

You can easily download homestay project report from our website in PDF Format and use it for writing your project report. If you want to get it in a word or Excel file. It is very simple to later convert the pdf to Word or Excel using free file converting tools.

Can I download homestay project report and use it for bank loan under pmegp mudra and other government scheme?

The main objective of homestay project report is to highlight all important aspects of this business for your new set up and to provide sample format for preparing project reports for other purposes. However, according to your need, we will prepare a customized project report for your set-up so that you can get a loan from the bank under any scheme.

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