Project Report for Resort
A resort is a type of hospitality property where customers pay not only for a lodging but also for an experience, such as a hill station escape, a wildlife lodge, a riverfront retreat, or a wellness facility. Rooms, food and beverages, activities, and events all contribute to revenue. The financial strategy is more sophisticated than that of a budget hotel, but the potential profit margin is substantially bigger. Sharda Associates generates CA-certified resort project reports. Starting at Rs. 2,999.
Get Your Report
What Is a Resort Business and How Does It Earn?
A resort is a destination hospitality property; unlike a transit hotel (where guests sleep and go), a resort is intended for guests to remain, spend time, and spend money on the property. Revenue comes from several streams:
To calculate room revenue, multiply the nightly room fee by the occupancy. Resorts normally charge Rs.2,500-25,000 or more per room per night, depending on the type, location, facilities, and season.
F&B (Food and Beverage): Restaurants, bars, in-room dining, and banquet/event catering make for 25-40% of overall resort revenue at well-managed facilities.
Spa treatments, swimming pool access fees, adventure activities (if available), guided nature walks, cultural programmes, and a kids club are all premium-priced experiences that set the resort apart from a typical hotel.
Events & MICE: Weddings, corporate retreats, team building events, and conferences are examples of high-value group reservations that can fill the hotel at premium rates for 2-4 days.
Day use: Guests who do not stay overnight but want to utilize the pool, spa, or eat at the restaurant generate additional revenue without incurring occupancy costs.
Types of Resorts at MSME Scale
- Nature & wildlife resort: Located near national parks, wildlife sanctuaries, rivers, and hills, these properties cater to nature, wildlife, and eco-tourism enthusiasts. Examples in the MP context include areas surrounding Kanha, Bandhavgarh, Pench, Satpura, and Pachmarhi. Typically 10-25 rooms/cottages, including a restaurant and outdoor activities.
- Hill station / mountain resort: Near hill stations and scenic highlands, aimed to weekend getaway travelers from adjacent cities. Strong demand during the summer and during long weekends.
- Riverside / waterfront resorts are located around rivers, lakes, or reservoirs and frequently include boating, fishing, and other water activities. Seasonal yet high demand in tourism areas.
- Eco resort / sustainable resort: Focused on sustainability and natural immersion, including glamping tents, solar electricity, organic food, and a plastic-free site. Premium urban travellers are driving up demand.
- Ayurveda, yoga, meditation, and naturopathy are offered in a wellness resort or yoga retreat, which also provides lodging. Higher ADR (Average Daily Rate) than activity resorts, with high corporate retreat and individual wellness demand.
- Farm stay resort: An agricultural setting with farm experiences such as milking, planting, and harvesting, as well as accommodations. Growing interest in agritourism.
Key Financial Metrics for a Resort Project Report
The average daily rate (ADR) is calculated by dividing total room income by the number of rooms sold. For a 20-room resort with 80% occupancy and a monthly room income of Rs.8 lakh, the average daily rate (ADR) is Rs.1,667.
RevPAR (Revenue Per Available Room) is ADR × occupancy rate. At Rs.2,500 ADR and 60% occupancy, RevPAR is Rs.1,500 per room/night. Banks use RevPAR to measure resort success.
Occupancy ramp-up: A new resort does not open with 60-70% occupancy. Months 1–3: 15–25%; months 4–6: 25–40%; months 7–12: 40–60%; and year 2: 55–70%. Flat projections are discounted by knowledgeable hospitality lenders.
TREVPAB (Total income Per Available Bed): Includes lodging, F&B, and activities, providing a comprehensive view of per-unit income generating.
Seasonal concentration: Most resorts have two or three peak seasons (school vacations, long weekends, wedding season). Peak months can generate 3-5 times more revenue than lean months; monthly plans must appropriately reflect this.
OTA Commission and Direct Booking Mix
Bookings made through online travel agencies (OTAs) such as MakeMyTrip, Booking.com, Goibibo, and Expedia incur a commission of 15-25% per booking. High reach at a substantial commission expense.
Direct bookings: via the resort’s own website, Instagram, WhatsApp, and phone — no commission, better net revenue. Developing direct booking capabilities (website, social media) is a crucial profit driver.
A resort with 70% OTA reservations and a 20% commission on Rs.30 lakh/month room income pays Rs.4.20 lakh/month in OTA commissions. Shifting 30% to direct bookings saves Rs.1.26 lakhs each month.
Revenue predictions must include net ADR (after OTA commission) for the OTA segment, not gross stated rates.
MP Tourism Policy for Resorts
- The Madhya Pradesh Tourism Policy includes particular incentives for hospitality and resort development:
- Capital subsidy: Based on project cost for approved resort/hotel projects in notified tourism zones.
- Land lease: MP Tourism leases land in tourism circuit areas on a long-term basis for resort construction, considerably lowering the upfront land cost.
- Single-window clearance: Coordinated clearances for tourism properties via invest.mp.gov.in.
- MP Tourism’s classification of resorts (Heritage, Eco, and Comfort categories) entitles classed establishments to promotional support and preferred ranking on MP Tourism platforms.
- For MP-based resort projects near tiger reserves, heritage sites, and natural attractions, the project report should include information about the MP Tourism Policy classification and incentives.
Licences and Compliance
Hotel and lodging license: Registration with the state tourism agency, as well as a commercial accommodation license from the municipal authorities. FSSAI: For restaurant and food service enterprises. Fire NOC: Ensures commercial facility safety compliance. Liquor license: If bar service is provided, contact the state excise department. GST: 12% on accommodation rates of Rs.1,000-7,500/night; 18% above Rs.7,500/night. Environment clearance: Required for projects that exceed certain area criteria and are located near ecologically sensitive areas.
Project Cost For Resort
Resort Type/Scale | Capital Cost (Rs.) |
Small eco resort / farm stay (8-12 rooms) | Rs.30-80 lakh |
Medium nature resort (15-25 rooms + restaurant) | Rs.80 lakh-2 crore |
Full-service boutique resort (25-40 rooms + amenities) | Rs.2-6 crore |
Large destination resort (50+ rooms, conference, spa) | Rs.6-20 crore |
Smaller resorts (Rs.30-80 lakh) may access MSME term loans + MP Tourism Policy support. Medium resorts need project finance from tourism-focused NBFCs or bank consortium. Larger properties need DPR-level project finance.
Why Choose Sharda Associates
- 45,500+ Project Reports: Hospitality and Tourism Property Experience Resort project reports involve multi-stream revenue modeling (rooms + F&B + activities + events), occupancy ramp-up staging, OTA commission netting, and seasonality, which we accurately model.
- Multi-Revenue Stream Correctly Modeled Room revenue, F&B, spa, activities, events, and day use are all modelled independently, with different development trajectories, rather than being combined into a generic “resort revenue.”
- Occupancy Ramp-Up Staged: 15-25% in months 1-3, increasing to 55-70% by year 2. Not flat high-occupancy since the first day.
- OTA Commission Netted from Room Revenue: 15-25% commission on the correctly subtracted OTA portion—net ADR utilized in predictions.
- MP Tourism Policy Linkage for MP Projects: Star categorization, capital subsidies, and land leases for MP-based resorts near tiger reserves and heritage areas are noted where appropriate.
- Seasonal revenue peaks are correctly reflected: peak season is 3-5 times lean season – monthly estimates rather than flat annual averages.
- Starting at ₹2,999 · 24–48 working hours ·
+91 89899 77769 | All India service
Frequently Asked Questions
A Resort Project Report is a detailed business plan and financial document prepared for starting or expanding a resort business. It includes details about accommodation facilities, rooms, food and beverage services, activities, infrastructure, investment cost, working capital, revenue assumptions, expenses and profitability projections.
For bank loans, it helps financial institutions evaluate the feasibility and repayment capacity of the proposed resort project.
Sharda Associates prepares customized Resort Project Reports according to the entrepreneur's business model and investment requirement.
Banks and financial institutions may require a project report while evaluating finance for establishing a resort.
The report explains land and development requirements, construction cost, rooms capacity, facilities, expected occupancy, revenue sources, operating expenses and repayment capacity.
Sharda Associates can prepare a bank-oriented Resort Project Report with detailed financial projections.
Investment depends on:
- Location of the resort
- Land availability
- Number of rooms
- Construction cost
- Amenities provided
- Restaurant and F&B facilities
- Recreational activities
- Staff requirement
- Working capital
A small leisure resort requires lower investment compared to a luxury destination resort.
A resort may include:
- Guest rooms
- Restaurant and food facilities
- Swimming pool
- Conference facilities
- Adventure activities
- Nature trails
- Spa and wellness facilities
- Event spaces
- Recreational areas
- Parking facilities
The project report can be customized according to the proposed resort concept.
Major costs may include:
- Land development
- Building construction
- Interior work
- Furniture and fixtures
- Kitchen equipment
- Landscaping
- Utilities
- Staff recruitment
- Marketing expenses
- Working capital
A detailed project report estimates these costs to calculate total project investment.
Revenue can be generated through:
- Room bookings
- Food and beverage sales
- Events and conferences
- Adventure activities
- Wedding functions
- Corporate retreats
- Wellness packages
Revenue depends on occupancy rate, pricing strategy, location and customer demand.
Resort profitability depends on:
- Occupancy rate
- Room tariff
- Operating expenses
- Food and beverage revenue
- Seasonality
- Location advantage
- Customer experience
- Marketing strategy
Financial projections help estimate expected profitability before investment.
A detailed project report may include:
- Project cost
- Construction and setup expenses
- Furniture and equipment cost
- Working capital requirement
- Means of finance
- Occupancy assumptions
- Room revenue projections
- F&B revenue
- Operating expenses
- Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
- Break-even analysis
- DSCR calculation
- Loan repayment schedule
Sharda Associates prepares these financial projections according to the actual resort project.
Yes, a resort project report can be prepared for presenting the business proposal to banks and financial institutions.
The report can include investment details, hospitality business model, revenue projections and financial feasibility.
Eligibility for any specific financing scheme depends on applicant eligibility, project size and applicable guidelines.
Sharda Associates can prepare a customized Resort Project Report for bank loan and business planning purposes.
The report can include:
- Business profile
- Resort concept analysis
- Location and capacity planning
- Investment calculation
- Infrastructure requirement
- Revenue model
- Expense estimation
- Profitability analysis
- Cash flow projections
- Balance sheet projections
- DSCR and repayment calculations
The report can be customized for eco-resorts, luxury resorts, adventure resorts, farmhouse resorts, holiday resorts and tourism-based hospitality projects.