Cost to turn a home into a homestay in India (2026)
Design IRL Editorial · Figures checked 7 November 2026 · For homeowners thinking of opening a few rooms to paying guests · How we make our guides
Turning a home into a homestay costs roughly ₹1–5 lakh per room, depending on how much work each room needs; one source puts a two-room homestay at ₹5–10 lakh in total. Most of the money goes into the bathrooms, and you will need to register under your state's homestay scheme.
Budget per room
The data for homestays is thin and mostly low quality, so treat these as rough guides. A rough working range is ₹1–5 lakh per room, depending on how much work the room needs.
| Item | Approximate range per room |
|---|---|
| Room renovation: walls, floor, electrical, finishes | ₹30,000–75,000 |
| Furniture: bed, wardrobe, seating, curtains | ₹60,000–1 lakh |
| Bathroom fixtures, basic | ₹15,000–25,000 |
| Bathroom fixtures, premium | ₹50,000 or more |
One source puts a two-room homestay at ₹5–10 lakh in total. Add linen, towels, signage and a contingency of 5–10%.
Bathrooms are the big cost
Guests expect an attached bathroom with reliable hot water. Adding a new bathroom costs far more than refreshing an old one, because it needs plumbing, drainage and waterproofing. Bathroom fixture costs we found are not India-specific, so get local quotes.
- Check water pressure and hot-water capacity for several guests at once.
- Waterproof properly before tiling, especially on upper floors.
- Choose fittings you can get spares for locally.
Decide how deep the renovation goes
| Depth | What it means |
|---|---|
| Refresh | Paint, new linen and furniture, existing bathrooms cleaned up |
| Moderate | New furniture, refurbished bathrooms, some electrical work |
| Gut | New bathrooms, rewiring, new floors, layout changes |
Start with a walk-through and list what each room needs. That is the quickest way to see which end of the range you are in.
Keep the character of the house where you can. Guests often choose a homestay because it feels like a home, not a hotel. Spend on comfort first: a good mattress, blackout curtains, a working fan or AC, plenty of sockets and a reading light by the bed. Decorative extras can wait until you see what guests ask for.
Think about common areas too. A shared sitting room, a dining space or a garden can lift what you charge, but each adds cleaning and upkeep. If you plan to serve meals, a home kitchen is usually enough for a few rooms. A larger operation may need a proper commercial kitchen and the food licences that come with it.
Registration, fire and safety
Most states have a homestay or bed-and-breakfast registration scheme, run by the tourism department. Rules, room limits and fees vary by state and change. In Himachal Pradesh, for example, the 2025 rules set fees of up to ₹18,000 a year in municipal-corporation areas. Check the current rules on your state tourism portal.
- Fire extinguishers and clear escape routes.
- Safe electrical wiring and earthing.
- Guest records, as your state requires.
- A fire NOC where your state or building size calls for one.
Licence fees change
Licence fees and rules vary by state and change often. The figures here come mostly from agent and software-vendor blogs. Check the current fee and process on the official state or municipal portal before you rely on them.
When you need an architect
For a refresh, a good contractor and perhaps an interior designer are enough. Bring in an architect if you are adding rooms or bathrooms, changing the structure, or need drawings for approvals. Add a structural engineer if you are adding a floor above an existing one.
Get quotes on the same scope
Write down the work for each room, then get 2–3 quotes against that same list. It makes quotes easy to compare.
Will it pay back?
Work out your total spend, then divide by what one room earns in a month after costs such as cleaning, laundry, utilities and booking commissions. That tells you how many months each room takes to pay back. Be realistic about how many nights a month you will fill, especially off-season.
If you are borrowing for the work, include the EMI in your monthly costs. On the GST side, works contracts are charged at 18% and input credit on building work is generally blocked. Confirm your position with a CA.
Common questions
How much does it cost to convert a home into a homestay?
A rough working range is ₹1–5 lakh per room, depending on how much work the room needs, and one source puts a two-room homestay at ₹5–10 lakh in total. Data for homestays is thin, so treat these as rough guides.
What does it cost to furnish a homestay room?
Furniture for a homestay room, including bed, wardrobe, seating and curtains, costs about ₹60,000–1 lakh. Room renovation (walls, floor, electrical, finishes) adds ₹30,000–75,000, and basic bathroom fixtures ₹15,000–25,000.
How do I register a homestay in India?
Most states have a homestay or bed-and-breakfast registration scheme run by the tourism department, with rules, room limits and fees that vary by state. In Himachal Pradesh, the 2025 rules set fees of up to ₹18,000 a year in municipal-corporation areas.
What fire and safety measures does a homestay need?
A homestay needs fire extinguishers and clear escape routes, safe electrical wiring and earthing, guest records as your state requires, and a fire NOC where your state or building size calls for one.
Do I need an architect to convert my house into a homestay?
Not for a refresh, where a good contractor and perhaps an interior designer are enough. Bring in an architect if you are adding rooms or bathrooms, changing the structure or need drawings for approvals, and a structural engineer if you are adding a floor.
How do I work out if a homestay will pay back?
Divide your total spend by what one room earns in a month after cleaning, laundry, utilities and booking commissions, and include any EMI. Be realistic about how many nights a month you will fill, especially off-season.
Find the people
Related guides
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- Building or renovating a home in Noida: rules and costs (2026)Which authority approves your plot, what the UP Apartment Act and your society allow in a flat, the OC and registry check before interiors, GRAP and hard water, stamp duty, and firms to hire in Noida.
- Building or renovating a home in Gurugram: rules and costs (2026)DTCP, HSVP or MCG: who approves your plot, the stilt-plus-four stay, what the Haryana Apartment Act allows in a flat, water and power in new sectors, GRAP, stamp duty, and firms to hire in Gurugram.
- Building or renovating a home in Delhi: rules and costs (2026)MCD and NDMC plan sanction, the no-sanction rule for small plots, DDA's 2026 rules for altering flats, GRAP construction bans, groundwater, stamp duty, and firms to hire in Delhi.
Sources
Most published cost figures come from firms that sell the work. We give ranges and you should get 2–3 quotes.