How to Open a Homestay in Himachal: A Step-by-Step Guide

The Starting Point

Almost every week, I get a DM or a call: “Bhai, I want to open a homestay in Himachal. How do I start?”And every time, I smile. Because I was you once.

Back in 2017, I left Delhi with a filmmaker’s camera and a crazy dream — to build something in the mountains. That’s how Mudhouse started in Jibhi. There was no blueprint, no mentor, no YouTube guide. Just trial, error, and money burnt in wrong places. Some decisions turned into magic. Some turned into sleepless nights and loans.

Now, after Mudhouse, Fika Homes, YouFinder, Dreamers Fellowship, and a few scars, I can finally say: here’s the roadmap I wish someone had given me.

So if you’re dreaming of your own Himachali homestay, here’s how to do it — step by step, with real talk.

Step 1: Location Isn’t Just About Views

Everyone thinks: “I want a mountain view!”But views don’t bring bookings. Access does.

• Is there a road?

• Can a taxi reach?

• Does Jio work here (at least)?

• How far is the nearest market/medical help?

Mudhouse worked in Jibhi not just because of the charm — but because it was hidden yet accessible. Guests could come without killing their backs on the road.

👉 Pro Tip: Don’t buy land just because it’s cheap and pretty. Buy land where people can actually arrive.

Step 2: Concept Comes Before Cement

Homestay? Hostel? Retreat? Café with rooms?If you don’t decide this early, you’ll waste lakhs later.

Fika was built as a home for slow living, not a party hostel. YouFinder was designed for retreats, not walk-ins. Each concept decides:

• How many rooms you build.

• How you design common spaces.

• What kind of guests you attract.

👉 Pro Tip: Ask yourself: “Who am I building this for?” If you don’t know your guest, you don’t know your property.

Step 3: Paperwork & Permissions

This is the part most dreamers ignore until the inspector knocks.

• Homestay License from HP Tourism.

• F&B License if you’re running a café.

• Panchayat / local approvals.

• GST Registration if your yearly revenue crosses the limit.

I know at least 3 people who had to shut down after spending lakhs — just because they skipped this step. Don’t.

Step 4: Budget & Hidden Costs

Here’s the part where dreams get real.Everyone underestimates costs. Everyone.

Your ₹25 lakh budget? It will touch ₹40 lakh once you add:

• Road construction or leveling.

• Water tank, borewell, pipes.

• Solar backup or genset.

• Furnishing, cutlery, bedsheets.

• And yes — marketing & staff salaries.

👉 Pro Tip: Whatever your estimate is, add 30% buffer. Mountains don’t care about your Excel sheet.

Step 5: Design for People, Not Just Instagram

At Mudhouse, we built hammocks and corners that looked beautiful but tore in 2 months. At Fika, we obsessed about interiors and forgot about enough storage.

Guests don’t care about your Pinterest moodboard. They care about:

• Hot water that works.

• Common areas that feel alive.

• A bed that doesn’t creak.

👉 Pro Tip: Walk through your property as a guest: check-in, drop your bag, order chai, go to the loo, sleep, wake up. Fix whatever feels off.

Step 6: Storytelling is Oxygen

This is the biggest difference between a property that struggles and one that thrives.

Mudhouse became famous not because of marketing spend — but because we told our story. People didn’t come just to stay; they came to belong.

Your story = your why.

• Why this land?

• Why this house?

• Why should a guest choose you over the 100 others?

👉 Pro Tip: Start sharing your journey from day one. Instagram, blog, WhatsApp. Let people see the process, not just the finished house.

Step 7: Operations Will Save Your Soul

Most first-timers think hosting is just “smiling and making chai.” Nope. It’s booking systems, check-in check-out, cleaning, inventory, café supply, volunteer management.

At Fika, when we didn’t have systems, I ended up doing everything myself. I was exhausted. Guests were happy, but I wasn’t. That’s not sustainable.

👉 Pro Tip: Write SOPs early. Even if it’s just a 2-room homestay.

Step 8: Seasonality is Real

Here’s a truth most people don’t hear until it’s too late: Himachal has 5–6 good months. The rest is patchy.

I’ve seen properties make ₹10 lakh in May–June and then nothing for 3 months. Staff still needs to be paid. Maintenance still eats money.

👉 Pro Tip: Plan off-season from day one. Host retreats, do workshops, collaborate with creators. Or shut for 2 months and save costs. But plan.

Step 9: Community Is Your Best Marketing

Guests will forget your wallpaper. They won’t forget the conversations they had around your fire.

At Mudhouse, strangers became family. At YouFinder, small retreats created life-long bonds. That’s what keeps people coming back — not discounts.

👉 Pro Tip: Don’t just host guests. Host experiences. Dinners, music nights, poetry, treks. Small things that create memories.

Step 10: Don’t Forget Yourself

The hardest lesson.Hospitality will drain you if you let it. I’ve seen owners sleep in storerooms, live on Maggi, and burn out in year one.

Your dream should add to your life, not take it away.

👉 Pro Tip: Build systems and hire help so you can breathe. Slow living is only real if you live it too.

Closing Thought

Opening a homestay in Himachal is not easy. It will test your patience, your money, your health. But if you do it right, it will also give you the richest stories of your life.

I’ve lived this journey- the wins, the losses, the nights of doubt. And I’d still do it all again.But you don’t need to repeat my mistakes.

📩 Before you spend your first rupee, let’s talk. A one-hour clarity call today can save you lakhs tomorrow.