What
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  • imageTravel & Leisure
Where
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At a glance
On Inquiry
Investment Range
6 - 10
Franchise Count
2,001 - 5,000 sq.ft
Area Required
On Inquiry
Payback Period
7
Years in Franchising

Spaga Hotels Franchise

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

Travel & Leisure Hotel B2C Owner-Operated Individual/Corporate
Investment and financials
Cost overview
Investment range On Inquiry
Franchise / Brand fee On Inquiry
Royalty / Commission On Inquiry
Investment tier Mid
Area required 2,001 - 5,000 sq.ft
Staff required 15 - 60
Setup complexity Complex
Business term 15 Years
Renewal available Yes
Returns outlook
Expected monthly revenue
On Inquiry
Revenue model Moderate
Business model B2C
Break-even
Capital payback On Inquiry
Capital sensitivity Medium
Investor fit profile
Operations
Operation mode Owner-Operated
Location type Standalone/Tourist Area
Property required Standalone/Tourist Area
Home-based possible No
Can run part-time No
Primary customer Individual/Corporate
Market characteristics
Seasonality Low
Recession resistance Medium
Digital integration Medium
Years in franchising 7 Years
Avg units / year 1.4
Ideal for
Experienced professional Small retailer upgrading to branded model
Franchise support
Provided by brand
Not provided by brand
Data not available
Tax System Inclusion
Franchise Manuals
Head Office Support
Field Assistance
Agreement Template
Marketing Co-op Fund
Training and agreement details
Training location
Information Not Available
Business term
15 Years
Renewal available
Yes
Brand strength
7 Years
Years Franchising
1.4
Avg Units / Year
2018
Founded
B
Brand Tier
B
Tier B — Growing brand with expanding presence
A+Established AMature BGrowing CStartup
Growing
Forefind rank history
Current rank
#19
Travel & Leisure category
2025
Moved up 22 places since 2020
Based on Forefind scoring model
Licences and compliance
Required licences and registrations for operating this franchise in India. Requirements may vary by state and city tier.
Hotel Classification
FSSAI
Setup complexity:
Complex
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