Detailed Project Report
Homestay (Bed and Breakfast)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹18.90 L
- Term loan from bank
- ₹17.01 L
- Promoter’s contribution
- ₹1.89 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.71 L
- Average DSCR
- -0.99
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Let spare rooms in your own home to tourists and travellers with breakfast, living alongside them as host family.
| Main product or service | Homestay (Bed and Breakfast) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Individual foreign tourists
- Domestic tourists, students and young professionals
- Long-stay business travellers and families
- Online homestay and travel portals (about 10% commission in the profile)
- Guest reviews and repeat visitors
- State tourism department listings
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Construction of an additional room and bathroom | 1 | 3,00,000 | 3,00,000 |
| Bathroom fittings and accessories (× lot) | 1 | 2,00,000 | 2,00,000 |
| Repair and painting of the property (× —) | 1 | 2,00,000 | 2,00,000 |
| Furniture, furnishing, beds, linen and blankets for three rooms (× 3 rooms) | 1 | 3,00,000 | 3,00,000 |
| TV, air-conditioner, fridge and tea maker for three rooms (× 3 rooms) | 1 | 3,00,000 | 3,00,000 |
| Lounge, dining area and kitchen refurbishing with TV and AC (× —) | 1 | 3,00,000 | 3,00,000 |
| Additional kitchen equipment (× lot) | 1 | 1,00,000 | 1,00,000 |
| Cutlery, crockery and linen (× lot) | 1 | 25,000 | 25,000 |
| Water heating and safe drinking water (× —) | 1 | 75,000 | 75,000 |
| Total | 18,00,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Homestay Facility. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Breakfast and meal ingredients — breakfast costed at ₹30 per guest, a meal at ₹80
- Toiletries, consumables and laundry — ₹20 per occupied room
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 18.00 |
| Contingency | 0.90 |
| Total fixed capital | 18.90 |
| Working capital margin | 0.00 |
| Total project cost | 18.90 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.89 | 10.0 |
| Term loan from bank | 17.01 | 90.0 |
| Total | 18.90 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 |
| Operating profit (EBITDA) | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 |
| Depreciation | 2.84 | 2.41 | 2.05 | 1.74 | 1.48 | 1.26 | 1.07 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.84 | 1.60 | 1.31 | 1.02 | 0.73 | 0.44 | 0.16 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.03 | -7.36 | -6.71 | -6.11 | -5.56 | -5.05 | -4.58 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.03 | -7.36 | -6.71 | -6.11 | -5.56 | -5.05 | -4.58 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.03 | -7.36 | -6.71 | -6.11 | -5.56 | -5.05 | -4.58 |
| Depreciation | 2.84 | 2.41 | 2.05 | 1.74 | 1.48 | 1.26 | 1.07 |
| Cash accruals (PAT + depreciation) | -5.19 | -4.95 | -4.66 | -4.37 | -4.08 | -3.80 | -3.51 |
| Term loan repaid | 1.31 | 2.62 | 2.62 | 2.62 | 2.62 | 2.62 | 2.62 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.50 | -7.56 | -7.28 | -6.99 | -6.70 | -6.41 | -6.13 |
| Cash and bank | -6.50 | -14.07 | -21.34 | -28.33 | -35.03 | -41.45 | -47.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 |
| Reserves and surplus | -8.03 | -15.39 | -22.09 | -28.21 | -33.77 | -38.83 | -43.40 |
| Term loan outstanding | 15.70 | 13.08 | 10.47 | 7.85 | 5.23 | 2.62 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.56 | -0.41 | -9.74 | -18.47 | -26.65 | -34.32 | -41.51 |
| Net fixed assets | 16.07 | 13.66 | 11.61 | 9.87 | 8.39 | 7.13 | 6.06 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -6.50 | -14.07 | -21.34 | -28.33 | -35.03 | -41.45 | -47.57 |
| Total assets | 9.56 | -0.41 | -9.74 | -18.47 | -26.65 | -34.32 | -41.51 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.06 | -0.80 | -0.85 | -0.92 | -1.00 | -1.10 | -1.21 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.99 |
|---|---|
| Lowest DSCR | -1.21 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.84 | 2.41 | 2.05 | 1.74 | 1.48 | 1.26 | 1.07 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 17.01 | 1.84 | 1.31 | 15.70 |
| 2 | 15.70 | 1.60 | 2.62 | 13.08 |
| 3 | 13.08 | 1.31 | 2.62 | 10.47 |
| 4 | 10.47 | 1.02 | 2.62 | 7.85 |
| 5 | 7.85 | 0.73 | 2.62 | 5.23 |
| 6 | 5.23 | 0.44 | 2.62 | 2.62 |
| 7 | 2.62 | 0.16 | 2.62 | 0.00 |
17 Licences and registrations
- Registration under your state tourism department's homestay scheme (desirable, says the profile)
- Optional approval and grading by the Ministry of Tourism
- Fire safety clearance (the profile names this as the specific requirement)
- Shop and establishment or local body registration
- Report foreign guests to the police/FRRO through Form C
- GST registration once turnover crosses the limit
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Homestay Facility — https://www.standupmitra.in/Default/ViewFile/?id=1516112961070_Homestay%20Facility.docx&path=ProjectProfile
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.