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.
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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 is a destination location where guests can stay, relax, and spend money, with revenue coming from accommodation, food and beverage, spa, activities, and events. Unlike a transit hotel (where you sleep and then leave), guests come to enjoy the property itself. Multiple expenditure streams result in much higher revenue per guest than a comparable hotel.
ADR (Average Daily Rate), RevPAR (Revenue Per Available Room = ADR × Occupancy), and occupancy rate are the main measures. Banks also consider TREVPAB (Total Revenue Per Available Bed) for full-service resorts. Experienced hospitality lenders carefully examine the impact of OTA commissions on net ADR and realistic occupancy ramp-up (not forecasting 70% occupancy in month one).
The room rate ranges from Rs.1,000 to Rs.7,500 per night, with 12% GST. 18% GST on tariffs above Rs.7,500 per night. GST is free on stays of less than Rs.1,000 per night. F&B in the resort restaurant: 5% GST excluding ITC. Resorts must collect and remit GST, and their pricing plan should take into account the applicable GST slab.
Capital subsidies for approved resort projects, long-term land leases at tourism circuit locations, single-window clearances, and MP Tourism star category designation (Heritage, Eco, Comfort) all provide promotional benefits. MP-based resorts near Kanha, Bandhavgarh, Pench, Satpura, Pachmarhi, and Bhedaghat are eligible for tourism zone incentives.
Online travel agencies (MakeMyTrip, Booking.com, and Goibibo) charge 15-25% commission for bookings made through their sites. Commissions are Rs.4.20 lakh per month based on Rs.30 lakh in room income and 70% OTA reservations. Increasing direct booking capacity (via website, social media, and recurring guest loyalty) minimizes commission dependency and increases net revenue per room
Yes. Small eco-resorts (Rs. 30-80 lakh) can obtain MSME term loans. Some state tourist strategies include significant capital support. The project report must indicate a realistic occupancy ramp-up, multi-stream revenue, OTA commission netting, seasonal variance, and a DSCR of at least 1.25, as well as a moratorium on principal payments in Year 1 as occupancy increases.
The equipment required varies depending on the activity. River rafting equipment includes rafts, paddles, helmets, life jackets, rescue ropes, and safety kayaks. Tents, sleeping bags, cooking supplies, GPS gadgets, and first-aid kits are all necessary for trekking and camping operations. Zip-line and rope course operators must use certified harnesses, helmets, cables, pulleys, anchors, and safety equipment. Quality equipment that meets accepted safety standards is required not only for participant safety, but also for insurance eligibility and regulatory compliance.
Starting at ₹2,999, with 24-48 hour delivery. The study covers activity-specific revenue predictions, seasonal demand analysis, safety compliance requirements, equipment costs, guide and staff expenses, insurance considerations, MP Tourism Policy incentives (where applicable), and PMEGP, Mudra, or MSME loan formats. If the bank or government authority has any concerns, a free revision will be supplied. Call +91 89899 77769.