🎙️ Raman Sharma: 30 Years in Hotels — Truths, Profits & Punjabi Startup Advice
Hotel industry expert Raman Sharma on TechCast Punjabi Podcast
🌟 Raman Sharma: 30 Years in Hotels — Truths, Profits & Punjabi Startup Advice
Raman Sharma has spent over three decades mastering hotel management — from running successful operations in Chandigarh and Mohali to advising others on licenses, departments, budgeting, and revenue strategies.
In this no-nonsense episode, he breaks down how hotels really work — including startup costs, 33% profit margins, legal compliance, and the biggest mistakes new hotel owners make.
If you’re thinking of starting a hotel, restaurant, or food stall — or just curious how Punjab’s hospitality business functions — this episode is your blueprint. Practical. Honest. Actionable.
🧭 How Did Mr. Raman Sharma Begin His Hospitality Journey?
It all began back in 1995 when Mr. Sharma completed his graduation with a background in accounting. At that time, hospitality wasn’t even on his radar. But as life would have it, an unexpected opportunity opened a door—and he walked right through it.
His first role was at Monarch Hotel, where there was no General Manager, and he was entrusted with full responsibility. Working tirelessly day and night, he earned the owner's trust purely through dedication.
💡 Key Insight: “Work honestly even when no one’s watching. Sincerity might not pay instantly, but it always pays eventually.”
📈 How Did He Build His Career?
After his first stint, Mr. Sharma continued his journey at G.K. Hotel, Chandigarh. Here, he wasn’t limited to one department. He rolled up his sleeves and got hands-on with HR, finance, legal paperwork, and daily hotel operations. This practical, all-round exposure helped him grow faster than any classroom ever could.
Later, during the launch of Twilight Hotel, he played a pivotal role, and now, he oversees the finance and administration for both properties under the Western Court Group of Hotels.
🏨 What Makes Hotel Management So Challenging?
A hotel is much more than just beds and buffets.
Mr. Sharma reveals that over 25 departments run behind the scenes. These include:
- Pollution Control
- Labour Welfare Compliance
- Fire Safety
- Taxation (GST, Income, Corporation Tax)
- Infrastructure Audits
- Legal Licenses and Approvals
Even minor oversights like a noisy generator or water leak can invite legal trouble, especially in residential areas.
🤔 Common Mistakes New Hotel Owners Make
When asked about why some hotel ventures fail, Mr. Sharma shared a thought-provoking insight:
“Many people open hotels for status, not sustainability.”
- Choosing side streets with poor visibility or parking
- Ignoring essential utilities like gas storage and exhaust systems
- Prioritizing aesthetics over feasibility
✅ Pro Tip: Always consult an expert before construction begins.
💸 What’s a Good Profit Margin in Hotels?
Profitability is a vital benchmark to measure the health of a hotel business. Based on Mr. Sharma's extensive experience, here’s what he considers a healthy margin:
“If your hotel earns ₹1 crore monthly, ₹33 lakhs should be your net profit.”
Most successful hotels operate at a 30% to 40% profit margin, especially if they enjoy strong occupancy. Lower margins indicate system leaks which he can often detect just by scanning the financials.
📍 What Are the 5 Must-Haves for a Hotel to Succeed?
According to Mr. Sharma, running a successful hotel is not just about having a good building or fancy interiors. There are five key factors every hotel must focus on to thrive in a competitive market:
- Prime Location – Central or easily accessible
- Top-Quality Food – Never compromise
- Exceptional Service – Warm, fast, personalized
- Smart Pricing – Affordable yet profitable
- Aesthetic Ambience – Clean, inviting, and Instagram-worthy
💼 How Can Students Build a Career in Hotel Management?
Students can build a career in hotel management by starting out in one of the foundational departments. These entry points help them understand the core workings of the hospitality industry and gradually climb the ladder with experience and skills. Here are some common areas where freshers typically begin:
- Front Office
- Kitchen (Production)
- F&B Service
- Housekeeping
🎓 Mr. Sharma’s Mantra: “Degrees open doors. Experience builds careers.”
🌍 What’s the Reality of Working Abroad Compared to India?
Many young professionals are drawn to opportunities abroad, believing they offer more respect and better salaries. While international markets do provide structured growth and recognition, Mr. Sharma advises building a strong foundation locally before considering overseas roles.
“In countries like Canada or the UAE, staff roles in hotels are viewed with pride and dignity. Here in India, social perception sometimes gets in the way. That mindset needs to evolve.”
🍽️ Want to Open a Food Outlet? Here’s What He Recommends
If you're planning to start a food outlet, it’s best to avoid trying to please everyone. Mr. Sharma suggests focusing on a single cuisine or niche. That way, you can build a reputation for quality and consistency in your chosen specialty.
Focus on one cuisine. Even small stalls can earn ₹50K to ₹1L monthly if quality is maintained.
🧠 “Look at KFC or Domino’s. They scaled by perfecting just one offering.”
📲 Are Platforms Like MMT and OYO Worth It?
Absolutely, says Mr. Sharma. Platforms like MakeMyTrip and OYO have transformed how rooms are sold. Instead of going vacant, rooms now get visibility and bookings online—even if it comes with a small commission. But as Mr. Sharma explains, the tradeoff is often worth it.
- Customer reviews
- Real-time photos
- Dynamic pricing
- Higher visibility
🧮 Why Should Hotel Owners Consider Outsourcing Accounting?
Many hotels lose money without realizing it due to poor tracking of finances. Mr. Sharma recommends outsourcing certain financial functions to stay profitable and efficient. Here’s what he suggests outsourcing:
- Bookkeeping
- P&L Reviews
- Operational Cost Reports
“If your finances aren’t transparent, your business silently suffers.”
🏗️ Is Investing in a Banquet Hall a Good Business Move?
If done strategically, a banquet hall can become a major revenue stream for your hospitality business. Mr. Sharma outlines the ideal setup below:
- Space: 3 showroom-sized units
- Capacity: 250+ guests
- Cost: ₹2–2.5 crores
- Monthly Returns: ₹40–50 lakhs
- Net Profit: ₹20–25 lakhs
✅ ROI: Within 1 to 2 years if executed smartly
🎯 Final Thoughts from Mr. Raman Sharma
“Whether you’re a student or investor, the hotel business has space for everyone. But it rewards those who plan ahead and learn continuously.”
📩 Want to Connect with Gurinder Singh?
If you're interested in legal research, career guidance, or educational consulting, you can reach out to her professionally.
Email Here Book now!❓ Frequently Asked Questions (FAQs)
While a degree in hotel management can give you a good start, it’s not mandatory. Many professionals, like Mr. Sharma, have built successful careers through experience in various departments such as front office, F&B, and housekeeping. Passion, discipline, and willingness to learn are key factors.
The cost depends on location, size, and amenities. A small budget hotel may need an investment of ₹1–2 crores. Location is key, and you must also factor in legal licenses, staffing, and monthly operational costs. Consulting with experts can help optimize your budget.
Yes, food outlets often require lower initial investment and can be highly profitable if done right. Focusing on a single cuisine and maintaining consistent quality can generate monthly revenues between ₹50K to ₹1L or more, depending on location and footfall.
New hotel owners often focus on aesthetics rather than utility. They choose poor locations, overlook parking or storage requirements, and ignore the importance of licenses and tax compliance. These oversights can hurt profitability and create legal complications.
Online platforms help fill rooms that would otherwise remain empty. Even with a 25% commission, they can increase visibility and boost revenue through reviews, photos, and dynamic pricing. They’re especially helpful for new or lesser-known hotels.
Hotel owners need various licenses such as FSSAI (for food safety), GST registration, Fire Safety Certificate, Pollution NOC, Building Permit, and Trade License. Ensuring full legal compliance before launch avoids major issues later.
While experience is a big advantage, many successful hoteliers have entered the field by hiring the right experts and consultants. Learning on the job and understanding finance, service, and compliance are critical to success.
A well-planned hotel in a prime location can break even within 2 to 3 years. Factors like occupancy rate, operating cost, marketing, and guest satisfaction all influence this timeline.
Franchises offer brand recognition and built-in systems but come with royalty fees. Creating your own brand offers full control and profit retention but requires strong marketing and operations. The choice depends on your risk appetite and vision.
Focus on service quality, cleanliness, responsiveness, and guest feedback. Encourage guests to leave reviews and address negative ones professionally. Even simple gestures like welcome drinks or handwritten notes can earn 5-star ratings.