A guest house is a type of comfortable accommodation. It is a private home that provides a comfortable place for guests or travelers to stay. It offers more home-like amenities at a lower rate than hotels and includes breakfast, a room to relax, a bed, Wi-Fi, and many other facilities. Let's look at it as a business...
What is a Guest House?
As you've read, a guest house is a type of accommodation, also known as a guesthouse. It is a private home converted solely for guests, especially for those who don't have any local relatives to stay with. The guest house owner usually lives in a separate area within the property. Unlike hotels, guest houses do not have full-time staff. Many guest house businesses are family-owned and operated, offering a welcoming and personalized experience that enhances their overall service quality. In most cases, family members work 10 to 12 hours a day, starting at 6 a.m., and they may hire short-term service staff. The number of employees is generally limited.
"Blair House" in Washington, D.C., USA, is the official guest house of the President and is considered one of the most luxurious and historic guest houses in the country.
Guest houses particularly attract travelers who desire a relaxing time.
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Operating a Guest House
Location
You should decide which city or town you want to open a guest house in—preferably a place that people visit frequently.
Size
Guest houses tend to be smaller than hotels, creating a familiar and welcoming atmosphere for guests. They typically have no more than 10 to 15 rooms.
Social Atmosphere
A social atmosphere can foster a sense of closeness between guests and owners. Guests often seek a place to relax in the room, garden, or surrounding areas where they can interact with each other.
Cleaning Service
Cleaning services are important for attracting guests, so regular cleaning of rooms, bathrooms, and other areas is essential.
Owners
Owners often live on the same property or in another area of the property, allowing for more personal interaction between the owner and the guests.
Cost
Guest houses are generally inexpensive, making them a popular option for travelers with budget constraints. Purchasing land in cities can cost more than renting, and renting also requires a higher budget. The minimum cost to start a small guest house can range from US $16,700 to 27,800 (₹15 to ₹25 lakh).
Services
Services vary in level; some offer breakfast or other amenities, while others do not. They are generally simpler than hotels (for example, they may have fewer luxury amenities or may not have a pool).
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How to Start a Guest House Business
Select a good location for starting a guest house. Use your network and friends to identify potential customers, and then create a business plan for that specific location.
Business Planning
First, prepare for the business based on the type of market in the city, town, or village you are planning to operate in.
Required Funds
Estimate the capital required to start a guest house.
Obtain guest house registration and licensing from the local municipal corporation. You must also get permission and licensing from the local police in the city or town where you are opening the guest house, along with fire safety clearance from the fire department.
Understand Your Customers
Understand your customers and the type of people you want to attract.
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Decision
A guest house offers comfortable, personal, and familiar accommodation. It is less expensive than hotels and provides a more homely and relaxing experience. It offers a calm atmosphere where individuals can enjoy culture, socializing, and a pleasant stay, with the essence of a home-like environment.
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