About the Business
Join Spaga: Your Gateway to Success in the Hospitality Industry and Be a Part of India’s Premier Hotel Chain!
About Spaga:
Spaga is a renowned name in India’s hotel industry, known for its commitment to providing guests with exceptional value for money and top-quality stays at our hotels. We pride ourselves on being more than just a traditional hotel chain; we consistently receive high ratings and accolades from our satisfied guests.
Founded by Midhun Sebastian, Spaga boasts a top-tier management team consisting of seasoned professionals and management experts from Naipunnya College in Kerala.
Our Business Model:
At Spaga, we operate on a franchisee model, collaborating not only with established hotels but also those in construction and those yet to be built. We provide comprehensive end-to-end support to our franchisees, including assistance during the hotel’s construction phase. Our support services encompass:
Design Consultation
Project Management
Vendor Support for Various Services
Once the hotel construction is completed, we continue to offer extensive support, including:
Pre-opening Stage Support (staff recruitment, training, management, hotel listing, quality inspections)
Sales and Marketing
Inventory Management
Customer Support
Our hotels maintain an average occupancy rate of over 75%, surpassing the industry average of 50-55%. We achieve this while maintaining a robust Average Room Rate (ARR) of Rs. 2200+. Partnering with us often leads to a 3 to 5-fold increase in monthly profits for hotel partners. Additionally, since a significant portion of the business operates on a prepaid basis through Treebo, we exercise substantial control over the cash flows in the business.
To compensate for our services in getting the hotel up and running and ensuring healthy occupancy and sales, we receive a modest share of the overall room revenue.
Franchise Facts & Requirements:
Land Area Required: At least 5000 Sq. Ft.
Total Built-Up Area Required: At least 12000 Sq. Ft. (For under-construction properties)
Investment Required: INR 1 crore to 5 crores (Based on the type of project)
ROI: 12% to 25% (Based on the type of project)
Expected Break Even: 3 years to 7 years (Based on the type of project)
Location: Pan India (Land or property should be suitable for hotel construction)
Franchisor Support:
We offer comprehensive support across the entire value chain:
Design & Development:
Access to Spaga’s architectural partner for hotel construction
Ready-to-use design templates to choose from
Flexible designs to accommodate investor preferences
A network of contractors and builders for construction
Hotel Operations:
Access to Spaga’s network of operators and management contractors
Adherence to Spaga’s operational and quality standards
Quality assurance manager assigned to every property for inspections and issue resolution
Procurement:
Utilization of Spaga’s extensive vendor network across India
Cost benefits due to economies of scale from large volumes
Assured quality for products and services
Technology:
State-of-the-art central reservation system
Inspection app for real-time reporting and issue resolution
Real-time dashboards
Continuous adoption of cutting-edge technologies
Human Resource:
Assistance with staff recruitment and HR policies
Comprehensive training programs and modules
Staff motivation through incentives, rewards, and recognition
Sales & Marketing:
Access to Spaga’s robust sales and marketing machinery
Dynamic revenue management system
Strong online and offline sales presence
Participation in Spaga’s marketing campaigns
