Who wouldn’t want to restart their life and live off running a successful Homestay or Airbnb in Goa?
I mean I would do that too!
Despite having a similar life — and owning a hotel on lease in Manali — when the mountains start getting too much, and I miss the coastal life, I find myself planning a trip to Goa. And if given a chance, I would love to relocate the business here (or at least a part of it).
I mean Goa feels perfect. It is laid-back, has beautiful nature & offers so much freedom that hardly any other coastal town in India does.
“Thanks to a multi-cultural vibe, Goa was the perfect place for us to relocate from Delhi and start a business here,” I remember Sapna emphasising, who owns 8 Airbnb in central and north Goa.
I spent 4-nights at one of her rental apartments at Colva Beach. Her journey left me so inspired and intrigued, that this time, as I planned a 15-day backpacking trip across South Goa, including Colva, Benaulim and Palolem, I decided to only stay at Airbnbs and learn more about businesses like her.
After a brief conversation, I figured she wasn’t originally from Goa. She was from Varanasi and briefly worked in corporate in Delhi, yet she owned 8 rental apartments in Goa. She fully owned 4 properties and the rest were taken on lease.
I asked if I could interview her and she could help me and help my readers get a better idea of running an Airbnb or a Hotel On Lease in Goa.
Since she asked me to keep her partially anonymous, because of some controversial answers she has provided below, I am keeping her hotel name unnamed. For tips on how to run a successful hotel property business in Goa, this is what she has to say to newbies…
Running A Successful Hotel In Goa: Top Tips
Here are 10 questions that can help you shape you decision better.
This is me asking the question and the Airbnb owner in Goa, Sapna, answering questions…
1. What’s the minimum budget one should think of while planning to start a hotel business in Goa?
If you’re thinking of running a small homestay or a 5-room guesthouse on lease, you’ll need at least ₹15-20 lakhs for the first year. This includes lease deposits (usually 10-12 months’ rent upfront), renovations, licenses, staff salaries, and basic marketing. For a mid-range boutique hotel (10-15 rooms), budget ₹50-80 lakhs. The biggest expense? Lease deposits and bribes—yes, bribes. You’ll need to ‘manage’ local officials for licenses unless you want endless harassment.
2. What are some of the best locations for running a hospitality business on lease in Goa?
North Goa (Anjuna, Vagator, Morjim) is great for party crowds and short-term rentals, but leases are expensive and competition is cutthroat. South Goa (Palolem, Colva, Benaulim) is better for peaceful, long-stay guests and families. If you want steady income, avoid overly touristy areas—look for semi-prime locations like Assagao or Siolim where demand is high but supply isn’t saturated yet.
3. When did you begin with your first Airbnb in Goa? And what fuelled your success?
I started in 2018 with one tiny apartment in Colva. What worked? Aggressive Instagram marketing and undercutting competitors’ prices initially. Once I had cash flow, I reinvested into more properties. The real game-changer? Partnering with travel influencers for free hotel stay in Goa in exchange for promotion. Now, 80% of my bookings come from Instagram and repeat clients.
4. Is it a risky business?
Extremely. Hotel lease agreements in Goa are often verbal or loosely documented. Many landlords increase rent arbitrarily once they see you’re profitable. I’ve had friends whose leases were terminated overnight because the owner’s nephew wanted to start his own hostel. Always get a lawyer to draft your agreement with a 5-year lock-in clause.
5. Do you agree with the saying, ‘Locals are not very friendly to outsiders doing business in Goa’?
100%. Goans are warm as tourists but can be hostile to outsiders buying or leasing property. They see it as cultural erosion. I’ve faced threats, false complaints to tourism officials, and even sabotage (like power cuts during peak season). My advice? Stay low-key, employ locals, and contribute to the community—sponsor a football tournament or beach cleanup. It helps ease tensions.
6. Stories of landlords harassing tenants—is running a hotel on lease in Goa just a fantasy?
It happens a lot. One landlord shut off my water supply because he wanted a 50% rent hike mid-season. Another accused me of ‘illegal construction’ to force me out. The solution? Never rely on a single property. Spread your risk across multiple leases. And always record every interaction with the owner—Goa’s legal system moves slowly, but evidence helps.
7. Suggest a very appealing idea to generate good revenue quickly.
Target ‘workation’ crowds. Offer monthly packages with high-speed WiFi, a co-working space, and free bike rentals. Charge a premium (₹50k-₹1L/month) and market aggressively on LinkedIn and Facebook groups for digital nomads. Another hack? Partner with yoga instructors and offer retreats—huge profit margins.
8. Furnished property vs. empty land for construction—which is more profitable?
Furnished leases are safer but eat into profits. Raw land is cheaper long-term, but Goa’s construction laws are a nightmare. If you’re an outsider, avoid building a hotel in Goa—you’ll drown in bribes and delays. Stick to leased properties unless you have deep pockets and local contacts.
9. What licenses are needed to run a hotel on lease in Goa?
You need a Goa Tourism registration, Fire NOC, Health License, and GST registration. The process takes 6-8 months if you do it legally… or 2 weeks if you know the right ‘agents’. Expect to pay ₹2-5 lakhs in ‘fees’.
10. How do you handle seasonality in Goa?
Months are dead. Diversify—offer long-stay discounts, host events (art workshops, detox retreats), or temporarily list on Zolo for students. Many owners shut down May-September and go travelling.
11. Any last advice for newcomers?
Don’t romanticize Goa. It’s a business, not a vacation. Be ready for fights, scams, and stress. But if you survive the first 2 years? It’s the most profitable and freeing life you’ll ever have.