Starting Accommodation Business

What are the types of accommodation? What are the services and amenities that you will offer? Where is the best place to set your accommodation business?

People who spend their time travelling, going on a holiday, have business trips will always look for a place where they can rest or spend the night and this is why accommodation business will be very in-demand.

Once you decided to start an accommodation business you need to consider what type it will be, as there are different kinds, with different services.

Types of Accommodations

Hotel, Hostels, Guest House, Resort Hotel, Apartment, Inns, Restaurant with room, Private Houses, Lodge, Country House, Bread & Breakfast, Self catering, Bunk House, Halls of Residence, Tents for Campsites, Touring Caravans, Farm, Country Hotel, Camping Barn and many more.

Whatever may be the type of accommodation business you will choose it must go well with your customer’s budget and should have its own distinctive class for attracting more clients.
You may just start on a cheaper kind of accommodation but it does not matter as long as customers will enjoy the same service that 5 Star hotels can offer.
Customers will always consider accommodation rates, price of your meals, location, having easy access to the places your customer may want to go during their stay, local transportation and other facilities.

Accommodation Rates

If your target markets are students, you have to set your rates to an affordable price that is easy on the budget as some of the students may be working on their own for their studies. If you it would be for people spending their holiday or for business trips make sure that you are able to provide packages for them.


This is very obvious, if you would like to have halls of residence you must place your accommodation business near school or university or if you are targeting customers who are newly wed or taking their family holiday then you need to set your accommodation business in a place where there are surroundings that they will enjoy viewing.


Customer will also consider the facilities and amenities that you can offer them. Here are some examples of added services you can provide them: High Velocity Internet access, Telephone usage, In-room safe, Mini bar, Pay TV, Bathroom with Bathtub, Office area where they can work comfortably.

Things to Consider Before Starting an Accommodation Business

  • You have to create a business plan for your accommodation business as it will require a large amount of capital for you to start. You need to consider if the location where you place your business will attract customers.
  • You also need to set your employees expectation that you will be accommodating customers even during holidays and weekends.
  • Like other business you need to obtain planning permit, health sanitation permit as you will opt to serve food to your customers, federal and state licenses, business registration and insurances for your business and your staff.
  • Sufficiency of funds to sustain your business until your investment will be return and will help your business to develop.


  • mpho nenzhelele said on October 29, 2012
    i like to start an accommodation business which i am targeting student or tertiary student around limpopo province in south africa. so i like to know how can i start such business as i dont even have money to start but i have dream and believe that, with your support i will be do it. thanx
  • Lindiwe said on January 24, 2013
    i'd like to start an accommodation my target will be from students and working people. My problem is that i struggling on a business plan, i just don't know where to with it or go about it. please help this lost sole.
  • Phelane t said on April 17, 2013
    I would like to start an accommodation business and i have a place, my target working people and contractors. The problem i dont have money to start and dont know where to go for a business plan. I am in sasolburg, free state province, south africa
  • madimbo said on April 17, 2013
    i would like to start bed and breakfast business but i need a structural plan of one bed and shower and do nto who can assist/
  • simranjeet said on June 8, 2013
    I want to start my Accommodation business in New Zealand in Aukland for the students and my place would be near Aukland university how much will it cost and how can I start this business please can you help out in this.
  • poifo mofokeng said on June 16, 2013
    i want to start accommodation business but the area i am situated is rural and people income is working at farms. But the group i am targeting is professionals. HOW can i start business.
  • poifo mofokeng said on June 16, 2013
    the place is at Coligny small town in North West province
  • Rrantweetwe said on July 4, 2013
    i want to start accommodation business in Rustenburg East but I do not have money. I already bought a land and have a title deed for that land.Where can I get money to start and I am targeting people in the mines and industries
  • Joaquim said on September 17, 2013
    I project to start an accommodation business in Pretoria or Johannesburg, a guesthouse type business. Bead, Breakfast & dinner. I need a working partner.(
  • welcome said on November 2, 2013
    hi, i'm a 24 year young male, I have already started the accommodation business for tertiary studend in mpumalanga but I still need financial support to provide them with all necessary need such as internet. secure apartment and so on. I would like if to add more rooms as students will be coming down to mpumalanga province. thank you I hope I would get proper assistance.
  • Doreen said on January 3, 2014
    Hi All, I have a viable business idea, To open a Private Student/Learners accommodation/Hostel. Most of the students in Windhoek are struggling with accommodation. The hostel will offer services like Computer cafe, self catering facilities, open ground for extra mural activities, Transport/Taxi services etc. I'm looking for an Investor or Joint Venture Partner to assist with the START UP CAPITAL. contact me at:
  • Mahlangu NN said on January 29, 2014
    Hi, i'm 23 yrs old and i would like to start an accommodation business for students @ da University of Limpopo. Financial assistance as a start will be highly appreciated
  • Emmanuel said on February 5, 2014
    I would like to start accommodation business for tertiary students and leisure travelers. but no start up financials
  • sithembiso said on July 1, 2014
    I would like to start accommodation business such that my target group will be student and my biggest challenge is fair and acquiring finances. kindly advice as to advice as I really need to initiate this business.
  • emmanuel said on July 2, 2014
  • Phathekile said on July 5, 2014
    I want to start a business of accommodation for students we have a home in Soweto and we wish to start immediately with my brother what do we need to go to Universities because our main target are students that are getting Bursaries
  • Siphokazi Mlenzana said on October 13, 2014
    I like to start an accommodation business in Alice Eastern Cape for University of fore here students.
  • Peter said on January 22, 2015
    I can help you with business plan and all the instruction and give you the list of all organizations that gives start up money or loan to start your own business , 18 - 35 age to qualify for a loan...
  • Nhlakanipho said on January 26, 2015
    I would like to start an accommodation business which will target working class only, and I am struggling to get a loan that will cover all my starting expenses please give advice on how to go about applying for a loan.
  • Phathutshedzo said on February 20, 2015
    I want to start a student accommodation business, I have already acquired a piece of land near a certain FET college in lompopo, I am in the middle of registering my business, getting my BEE certificate, tax clearance and business bank account and having a plan for the structure being finalized. my biggest problem is having a business plan in place and how do I get funding from the government through their youth development programmes? because when I tried NDA in Polokwane they told me that they don't help with funds for construction, and I don't want to acquire a loan as I will have to start paying back the following month and that wont be realistic. Please help on the next step a should take.
  • Vincent said on March 3, 2015
    I want to enter into the accommodation industry or the real estate ,my target is the working class in limpopo
  • Siyanda said on March 11, 2015
    Hi, I want to start a student accommodation business in Dundee due to the unmet demand on specifically on student accommodation. A place which is safe and is of student environment. Please assist me on how to draft a business plan for student accommodation
  • Philimon Diale said on March 16, 2015
    I'm 4rm Limpopo at thabazimbi, regorogile so i want to Start accommodation business in my home town So i need a good place in thabazimbi anyone who can help that my number 0782708966
  • Patience said on August 11, 2015
    Hi, I want to start an accommodation business, my target is on the mining people. I have lot of ideas , I want to go big when it comes to accommodation, and I also want to help the orphans, I wont to built an orphan home one day. I need some finance to start my business. Can I get helped? I will really appreciate if I can get helped. Thanking you PATIENCE
  • Julius Kobola said on September 8, 2015
    i'd like to turn a residential into student accommodation, my target will be students. My problem is that I don't know if there are any restrictions to this since the area I have invested is in Town(lephalale, Limpopo)though its 10 minutes walk to the Technical college, will appreciate some advice.
  • Sizwe Mdletshe said on November 24, 2015
    I like to start the accommodation business and I have identified land within the radius of less than 10K from the institution. I am targeting students who will be enrolled from the newly built college. My problem is that I have no idea where to start, and that I don't have money to fund my business plan. Kindly assist me accordingly.
  • Tshepo said on March 10, 2016
    Hi, I would really like to start an accommodation business, just that I don't have the money to this. I am currently in Joburg. I used to stay in East London(SA) I know of a lot of a lot of buildings that can be bought and renewed there. and also there is a lot of land. East London is full of students.
  • siphokazi mnyateli said on May 2, 2016
    Hi I want to start a business accomodation I'm targeting tertiary students my problem is that I don't have funds to start it also someone who can help with business plan. I'm in Port Elizabeth, Eastern Cape,in South Africa
  • Absi said on May 9, 2016
    I want to start an accomodation business. my target being the work force from remote areas.
  • Olwethu said on May 18, 2016
    Hi I want to start accommodation for students in FET colleges in the urban areas (Queenstown, Whittlesea) as discovered that they are struggling and ending up being victims of crime and abuse. I need guidance on business plan and suggested processes to fully adhere with regards.
  • ramaila mg said on May 27, 2016
    Hi, my wife is having a stand in Jouberton (north west)not far from Tlhabologo FET College and we need to start accommodation business for students and employees on the particular stand, our challenge is business plan as well as funding to can start the business, assistance in this regard will be highly appreciated.
  • Letta said on June 8, 2016
    Hi I have a house exacly next to TUT Soshanguve in pretoria,i have an idea on building two block of flats for student accomodation but my problem is this is only in my mind i dont know where to start with a business plan and funding...Please help
  • EMILY NANIKI said on August 1, 2016
    hi my name is emily naniki buda from Delmas in mpumalanga i want to start accommodation business i dont know how to start that business can u please help me
  • torri said on August 19, 2016
    Good day, My plan is to start a business in the self catering accommodation property sector. I plan to acquire a start up loan to finance the purchase of the land R600000.00 smallholding, I will then fund the build with my own money. I need some advise on a few of the below.
    1. Acquiring funding for land purchase
    2. Possible funding outlets in south Africa
    3. Criteria for startup in this venture
    4. Pre funding guidelines to maximise success
    5. Business plan with regards to loan amount and total investment
    6. Funding repayment terms.
    7. Research guidelines and useful tool and resources
    8. Taxation and legal requirement
    9. Company registration. Two owners
    10. Any other helpful advise
    Thank you kindly
  • Fiona said on June 15, 2017
    Hi, Would like to open a small farm with accommodation affordable for families. Also need help with Acquiring funding for building. Criteria for start up in this venture, business plan outlines. Research guidelines and useful tools/resources. Legal requirements & Taxation. Registering this. Any other advise would be useful.
  • Naledi said on July 19, 2017
    Hi. I want to start an accommodation business in Rustenburg for workers and students. I do not have money to start such. Where can I get money?
  • tshiamo khoza said on October 6, 2020
    hi im 19 years old . I want to start accommodation for student and working people. my problem is that I don't have fund to start it also someone who can help with business plan.


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