Start Hostel or Paying Guest Business - Know the details from Investment, Legal, and the other details

We know that education is very important nowadays. In such a situation students stay away from home for a good education and do their studies. And often they need a hostel or PG i.e. paying guests to stay. Apart from this, tourists also look for hostels or PGs in some places because most hotel rates are very high. In such a case, if opening a hostel or PG business, it can be beneficial. Here are some of the things that you will need to run your own hostel or PG business and setup.

What is a hostel or PG? (What is Hostel or PG)

Hostels or PG is a budget-oriented place, where people usually live with a group of people and receive the full service offered here. There can be special students, students or single family or any other traveller. But there is a difference in hostel and pg. The hostel is the place, which is opened in a large area and there are many students living there, there are staff also, through whom all the facilities like a living, food are given. On the other hand, PG is the place, which is available in small areas. Here people live in a single family or some group. Most of the stay here is just allowed. Those who live there have to make arrangements for their own food. Therefore, in both places, people have to pay a little less for the money than the hotel.

Start Hostel or Paying Guest Business

Type of Hostel

What type of hostel or PG are you wanted to open in your hostel and PG business, they are being told as follows: -

• Student hostels: - These are the hostels, which are only available to students. But they can also be of different types like -

1. Girls Hostel: -
You can open only girls' hostels to start your business. Only girls and their group can live in it. These hostels have a few different rooms, these rooms can be single, double and 4-seater. Where girls have to share their room with another girl.
2. Boy Hostel: - You can also choose the option of a boy host to start your business. Only boys and their group can live in this hostel. And there are many different rooms available just like the girls' hostel.
3. Mixed hostel: - A mixed hostel of both boys and girls is also available in today's time. Where different groups of boys and girls live in one hostel. Here too, a few rooms are provided to them.

• Tourism hostels:
- Many tourists visit tourism sites. They want a place to live, but because of the expensive hotel, they prefer to stay at the hostel. Tourism hostels are made for such people only. It provides all the facilities for living and eating people. You can rent only if you want to rent.

• PG:
- We have already told you about PG ie Paid Guest, that it is in small areas. People in this group can also live with the family. There are not many different groups in it. In this, they are given a room or flat to live.

Location Required for Hostels or PGs

You should open a hostel or pg in a place where people search for it more. That is where people need it more. For this, you can think of an area near a college or school. Because most students and students like to live in hostels or PGs near college or school so that they do not have any problem in coming and going. Then selecting such a place will help you increase your business. Apart from this, you can also open hostels on the highways or the main roads. If you are opening a tourist hostel, then you should open the hostel near the tourist spot, so that people are easy to stay here.

Costs and earnings in the hostel or PG business

Before starting any hostel or PG business, you will need to make some investment in it. Because in it you have to make things available to your customers, such as some things like bed, clothes, utensils etc that they use. Apart from this, you will also need a building to open a hostel. You also have to pay for the hostel's license. In this way, you will need to invest some money to start this business. But if you have invested it once, then you will not need to invest it again and again.

To keep costs low in the growing competition, you have to set up this business with less investment. Accordingly, you plan your project. For this, you start with Phase-1, where you invest only 35-40% of your income, and start your business and run it. You can later develop Phase - 2 and Step - 3 so that it gives you margin time to improve your past mistakes and to fully invest your money.

Requirements For Setup of The Business

To prepare the hostel set up, you have to split your hostel area into separate areas. Living like food, bathroom, sports room, kitchen area, common area, reception area, recreation area and bar (if necessary) etc. Apart from this, you can add your innovation while setting up a bed area. You can also provide 3 or 4 beds in one room. Apart from this, you can also set up your place and with innovative ideas.

Given Facilities (Hostel Facilities)

To start the hostel business, you have to provide some features to your customers, which is as follows –

• Security lockers: - The hostel can be called a small hotel. They work almost like hotels. But some facilities offered to those who are staying in the hotel are not given here. Includes security for luggage occupants. People in the hostel have only security lockers for their luggage. When launching your hostel business, you provide the best security lockers for the occupants. Otherwise, the misuse of yours and your hostel's reputation will be bad.

• Bedding: - If you want to use the bed by combining double-deck or single deck or both in your hostel's rooms, you will have to decide it first. You will also need to keep in mind the privacy of those who live here, because people living in the hostels share their room with each other.

• Internet facility: - You must also provide the facility of the internet in your hostel, because it has become important in today's time. Internet access can be either wifi or landline based. Apart from this, your guests will need to keep a laptop or computer to use the internet. You can avail the internet by allowing you to stay in your hostel, allowing you to take additional fees.

• Maps: - If you are opening a tourist hostel, your guest would like to travel around the city where they are living. In order to help them and to ensure their safety, you must provide them with a map of that place so that they can get guidance while travelling in the city. If you link to the tour guide agency, you can also visit the city through him.

• Food - Drink: - In most hostels, food is provided. You can set up a mash in your hostel, which can be arranged for your guests, or you can contact any Tiffin service centre.

In this way, you can establish your business well by giving all these facilities to your customers.

License and Registration

Many times it happens that people sit in the hostels and do not register themselves. Such hostels are not safe. And people do not even like to come in such a place. You have to take care of it. You will need to get a license by registering your hotel or pg. You can obtain the following license.

• Trade license: - Business license is mandatory while opening the hostel. Trade license is a certificate document, which allows business to continue and for this the document is issued.

• FSSAI: - If you are going to provide food facility in the business of your hostel, then you have to make sure that food is of good quality and healthy, it should not cause any harm to anybody. For this, you go to your local food and safety government agencies and you can prove yourself there and get a license by giving an FSSAI application.

• NOC: - You may also need a NOC from the municipal corporation in your business. You must also inform the local police station. It usually includes all papers and exasmen of the premises.


The most important in the hostel's business, the staff at the hostel are required. You will first need an arrangement to handle the hostel, which will take care of those who visit your hostel or other things. Apart from this, you will also need cleaning workers, guards, mash employees etc. Keep in mind that you hire the best employee in your hostel, because they depend only on enhancing or decreasing your hostel's reputation.

Promotion / Marketing

In order to develop your business, you have to promote your hostel so that more people come to your hostel. You can get promoted by placing ads outside the school or college, by advertising in the newspaper. Holding can also be used in tourism sites, as well as a pam-plate, so that people can be attracted to seeing your hostel's ad, and more people can come and drive your business.

By starting this business in this way you can get more profit in less investment.
Because this is a long lasting business.