SME Toolbox

From homestay to hospitality chain: Lessons from India’s most successful hosts

May 15, 2025

What if your spare room could be the start of India’s next big hospitality brand? That’s exactly what some of India’s most successful hospitality entrepreneurs thought when they turned their humble homestays into thriving hospitality chains. From offering a single room to running a network of boutique stays, these visionary hosts cracked the code to scaling up in the competitive travel sector. With a growing demand for authentic, personalised stays, small business owners in India have a golden opportunity to build their own hospitality empires.

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What if your spare room could be the start of India’s next big hospitality brand? That’s exactly what some of India’s most successful hospitality entrepreneurs thought when they turned their humble homestays into thriving hospitality chains. From offering a single room to running a network of boutique stays, these visionary hosts cracked the code to scaling up in the competitive travel sector. With a growing demand for authentic, personalised stays, small business owners in India have a golden opportunity to build their own hospitality empires.

Small beginnings, big growth

1) SaffronStays: From a single villa to a luxury homestay chain

SaffronStays began as an idea to offer travellers exclusive access to privately owned vacation homes. What started with a single property has now grown into a network of 250+ luxury homestays across India. They partner with homeowners, maintain hospitality standards, and market these unique stays to high-end travellers.

Lesson: Instead of owning properties, focus on curating a unique experience and creating a network that benefits both homeowners and travellers. SMEs can replicate this by partnering with property owners and branding their offerings under one umbrella.

2) V Resorts: Crafting experiences beyond just stays

V Resorts took a different approach by turning unknown rural properties into experiential travel destinations. By integrating local art, food, and culture, they created a stay-and-experience model that attracted urban travellers.

Lesson: Travelers are looking for something beyond accommodation. Curated food, local interactions, and adventure activities can set your brand apart.

3) The Postcard Hotels: Luxury meets authenticity

Founded by Kapil Chopra, former president of The Oberoi Group, The Postcard Hotels focuses on ultra-luxury yet intimate, locally rooted experiences. Each property, though luxurious, retains a homely charm.

Lesson: Even small players can cater to luxury travellers by focusing on exclusivity and personalisation. SMEs should emphasise unique storytelling and premium service to attract a high-spending audience.

Growth strategies: Turning a small stay into a scalable brand

1) Define your niche and brand identity

Success in hospitality comes from specialisation. Are you offering eco-tourism stays? Heritage homestays? Adventure retreats? Identify a niche and create a strong brand identity around it.

Actionable tip: Pick a niche that aligns with market demand and your passion—luxury farm stays, yoga retreats, or pet-friendly getaways, for example.

2) Master the art of hospitality and guest experience

A memorable stay is what creates repeat customers and word-of-mouth marketing. Exceptional service, personal touches (like handwritten notes or surprise upgrades), and seamless experiences matter.

Actionable tip: Train staff (or yourself) in hospitality etiquette, problem-solving, and personalised guest interactions. Small details lead to five-star reviews.

3) Leverage digital marketing and storytelling

In a world where Instagram-worthy stays drive bookings, having a strong digital presence is non-negotiable.

Actionable tip: Use high-quality images, compelling storytelling, and influencer collaborations to showcase your property. Engage potential guests through blogs, videos, and virtual tours.

4) Partner with travel platforms and aggregators

Airbnb, MakeMyTrip, and Booking.com have propelled small properties into mainstream travel choices. Partnering with the right platforms increases visibility and bookings.

Actionable tip: Optimise your listing with attractive descriptions, competitive pricing, and instant booking options to attract global travellers.

5) Expand smartly with a franchise or management model

Instead of buying multiple properties, consider managing or franchising others under your brand, just like SaffronStays did.

Actionable tip: Create a playbook for consistent quality standards and customer experience before scaling to new locations.

6) Tap into sustainable and experiential tourism trends

Eco-tourism and immersive experiences are no longer just trends, they are necessities. Sustainability-conscious travellers are actively choosing stays that support local communities and reduce environmental impact.

Actionable tip: Introduce sustainable initiatives such as solar power, zero-plastic policies, and farm-to-table dining to appeal to responsible travellers.

Your small stay could be the next big brand

Today, a single homestay with great service, a strong brand story, and smart marketing can grow into a recognised travel brand. Your homestay is not just a side business, it could be the foundation of India’s next big travel brand. Scale smartly, innovate boldly, and remember: every hospitality empire starts with a single guest.

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