Before You Invest ₹50 Lakh in a Homestay - Read This!

The Dream We All Share

I get it. You’re tired of city noise, office politics, traffic jams. You imagine yourself waking up to a mountain sunrise, serving coffee to travelers, maybe hosting musicians by the fire at night.I had the same dream.

But here’s what nobody told me when I started:Dreams are free. Projects aren’t.

Over the last 8 years, I’ve built hostels, cabins, retreats, and cafes across Himachal and Goa. I’ve seen projects doing great, and I’ve seen beautiful properties shut down in just two years. Some of those mistakes were mine. Some were others.

Either way, I’ve paid in lakhs to learn lessons you can learn right here, for free.

So before you invest ₹50 lakhs in your “dream homestay,” read this carefully. It might save you your savings.

Where the Money Really Goes (And Why It flows Fast)

When I built my first hostel in Jibhi (Mudhouse), we thought: “Let’s just build beds, people will come.” They did -Jibhi wasn’t even on the map back then, and somehow Mudhouse became the reason people discovered it.

But by the time I was constructing Fika Homes, I had learned how money disappears like sand through your fingers:

1. Land & Location

   Buying land is just step one.

   Is there road access?

   Water connection?

   Will a landslide cut it off for 2 months?

   I’ve seen people spend crores just on making a road to their “dream plot.”

2. Construction

   In the city, you build in 6 months. In the mountains, the rain and snow laugh at your deadlines. Materials cost double because they travel on the back of a truck for days. By the time you finish, you’re already 80% over budget.

3. Design

   Everyone wants “Instagram-worthy” corners. But a pretty hammock that tears in 2 months, or fancy interiors that mold in the monsoon, are not design, they’re expenses.

4. Maintenance

   In Himachal, I’ve replaced plumbing thrice in one year because pipes freeze. In Goa, saltwater eats your wood. Maintenance is not “once in a while” , it’s a monthly line item.

5. People

   A property without good staff is just empty walls. But finding staff who stay in a remote village? That’s harder than fundraising. I’ve trained 50+ volunteers and staff ,half of them left within months because mountain life wasn’t for them.

   
   

The Mistake Everyone Makes

Most first-time owners fall into this trap: they build a beautiful property and forget the business.

I know at least 10 people who poured their hearts and savings into making the “most stunning property” in Himachal. Guess what? 5 of them are closed today. Why?

Because no one thought,

Not because they didn't want to, but they had no idea they have to:

• Who is our guest?

• Why will they travel here?

• How will we fill rooms in off-season?

  
  

Story: My Own Lakhs Lost

At Fika Homes, we built spaces that were warm and minimal, but we didn’t think enough about seasonality. Monsoons came, roads broke, bookings stopped, expenses didn’t. I remember sitting in the café, looking at the empty tables, thinking: “How do I even pay salaries this month?”

That’s when I realized: in the mountains, it’s not about how many rooms you have, but how well you plan for the 6 dead months.

👉 Lesson: Don’t build for summer. Build for the whole year.

10 Things That Can Save You Crores

1. Start Small, Grow Later

   One cabin can teach you more than 10 rooms ever will.

2. Market Fit > Marble Floors

   Build what your guests want, not what Instagram wants.

3. Test With Real Guests

   Host 20 people in a trial retreat before you open 20 rooms.

4. Don’t Copy Manali or Goa Prices

   A remote village is not Manali. Know your market.

5. Storytelling Is Everything

   People don’t book stays. They book stories. If your property has no story, it has no bookings.

6. Systems Save Souls

   Without SOPs for cleaning, check-in, food , you’ll burn out faster than your guests arrive.

7. Plan For Off-Season

   Workshops, retreats, events, or just close smartly. Don’t bleed money.

8. Hire Heart, Train Skills

   Staff and volunteers make or break your guest experience. Pick for vibe, not profiles.

9. Your Property Will Get Hurt

   Snow, rain, tourists, monkeys. Repairs are not “if,” they’re “when.”

10. Don’t Forget Yourself

    Hospitality can swallow you. If you don’t set boundaries, your dream project will become your nightmare.

    
    

The Part Nobody Tells You

Running a homestay is not a holiday. It’s early mornings, broken pipelines, clogged drains, power cuts, and guest check-ins at midnight. But, it’s also fireside conversations, strangers turning family, and lives being transformed under your roof.

If you’re ready for both sides of it, then welcome. This work can give you everything.

My Honest Advice

If you’re serious about building, don’t start by spending ₹50 lakh. Start by spending one hour talking to someone who’s already done it.

I’ve made the mistakes, lost the money, fixed the leaks, and built again. If my 8 years can save you 8 lakhs, isn’t that worth a call?

📩 Get Consultation, Before you build your walls, let’s build your clarity.