Union Budget 2026 reactions from hospitality leaders

Budget 2026 Signals New Growth Phase for Indian Tourism

By Author

Published on February 3, 2026

The Union Budget 2026 has drawn strong reactions from leaders across hospitality, tourism, real estate and allied sectors, with a common emphasis on skill development, destination-led growth and improved regional connectivity as critical levers for India’s next tourism expansion phase.

Yogesh Mudras, Managing Director, Informa Markets in India (organisers of SATTE), highlighted the Budget’s long-term approach to strengthening tourism fundamentals.

"The Union Budget 2026 lays out a forward-looking roadmap with a clear focus on infrastructure, economic growth, and better regional connectivity. One of the standout announcements for the sector is the plan to set up a National Institute of Hospitality, a move that could really strengthen India's tourism and hospitality ecosystem in a meaningful way. By bringing academia, industry, and government onto the same platform, the institute has the potential to create a skilled workforce that matches the evolving expectations of both domestic and international travellers. For hospitality businesses, this could mean higher service standards, smoother operations, and a more reliable long-term talent pipeline. In the bigger picture, initiatives like this tend to build investor confidence, encourage the development of new hotels, resorts, and tourism infrastructure, and further support India's positioning as a global travel destination. While the industry was also hoping for wider policy measures to make investments easier and simplify operations, this strong push toward skill development still sets a solid foundation for more structured, long-term growth in tourism and hospitality."

A key Budget theme has been the structured development of 50 destinations in partnership with states, supported by enhanced connectivity to regions such as Himachal Pradesh and Kashmir. This, industry leaders note, signals a deliberate effort to decentralise tourism demand beyond saturated metros and established leisure hubs.

Nandini Taneja, Chief Executive Officer, Bhumika Enterprises, sees the Budget as particularly relevant for emerging cities and inclusive growth.

"The proposal to establish a National Institute of Hospitality is a timely step for India's hospitality sector, especially in Tier-2 cities emerging as key travel and business hubs. By bridging academia, industry, and government, the institute can help create a skilled local workforce — critical for the growth of hotels and tourism-led developments. Equally encouraging is the Budget's push for women-led entrepreneurship through community-owned SHE-Marts, which will give SHG-linked women structured retail access and a pathway to enterprise ownership. This strengthens grassroots economic participation while supporting more inclusive local economies."

She added that,

"Together, stronger talent pipelines and inclusive economic initiatives will enhance service standards, improve operational efficiency, and boost investor confidence, accelerating hospitality-led growth in emerging cities and preparing them for rising domestic and international tourism demand."

Framing the Budget through a market-expansion lens, Ambika Saxena, CEO, TWH Hospitality, emphasised tourism’s elevation as a core economic driver.

"The Budget signals a clear shift in positioning tourism as a core economic growth driver rather than a peripheral sector. The structured development of destinations, along with improved connectivity, will expand India's viable hospitality markets beyond established hubs. With stronger destination infrastructure and a more robust talent pipeline, the industry gains better long-term demand visibility, investment confidence, and the ability to scale sustainably."

From a broader travel and enterprise perspective, Mr. Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises, welcomed the Budget’s alignment with long-term national goals.

"The Union Budget outlines a strong, forward-looking roadmap toward a Viksit Bharat by 2047. We welcome the government's continued focus on strengthening India's travel, tourism, and hospitality ecosystem through improved connectivity, accessibility, and destination infrastructure. The emphasis on skill development, heritage, and ecotourism reflects a deep understanding of the sector's economic potential. These measures will boost demand, support local economies, and strengthen India's position as a global hub for high-quality hospitality and travel."

Beyond hospitality, the Budget’s ripple effects are also being felt in retail and lifestyle sectors. Abhinav Kumar pointed to the alignment between manufacturing, logistics and brand-led growth.

"The Union Budget 2026-27 lays out a forward-looking path for India's retail and fashion ecosystem, reinforcing domestic manufacturing, innovation and brand competitiveness. Initiatives like the integrated textile programme, mega textile parks, MSME support and improved logistics create a stronger, more resilient supply chain for domestic and global brands in our portfolio. By fostering expansion into Tier-II and Tier-III cities, enabling digital and financial infrastructure and supporting high-quality production, the Budget provides the roadmap for Brand Concepts to scale efficiently, innovate responsibly and strengthen India's position as a hub for future-ready fashion and lifestyle businesses"

Taken together, industry reactions suggest that while stakeholders were hoping for deeper policy simplification and faster investment clearances, the Budget’s focus on skills, destination development and connectivity lays a credible foundation for decentralised, sustainable growth across India’s tourism and hospitality landscape.

MAYFAIR Elixir Signs Premium Hotel in Santiniketan, Eyes FY29 Debut

By Manu Vardhan Kannan

Published on July 19, 2026

MAYFAIR Elixir, the growth and expansion arm of MAYFAIR Hotels & Resorts, has signed a premium hospitality project in Santiniketan, West Bengal, further strengthening the group's presence in Eastern India.

The hotel, scheduled to open in FY2028-29, will become MAYFAIR's fifth property in West Bengal. Located in the UNESCO World Heritage Site of Santiniketan, the development aims to cater to leisure travellers, cultural enthusiasts and guests looking for intimate celebration venues.

Designed as a premium retreat, the upcoming property will combine modern hospitality with the cultural heritage of Santiniketan, offering personalised experiences that reflect the MAYFAIR brand while embracing the destination's artistic and literary legacy.

The signing was announced during Jagannath Rath Yatra and forms part of the group's long-term strategy to expand across destinations known for their cultural significance and tourism potential.

Speaking on the partnership, Rajendra Chatterjee, CEO & Managing Director of WESTROAD Group, which owns the property, said:

"Santiniketan is more than a destination. It is an emotion that celebrates creativity, learning and Rabindranath Tagore's legacy. We wanted a hospitality partner that understands the importance of preserving this essence while delivering exceptional guest experiences. MAYFAIR Group's expertise, its deep understanding of regional culture and unwavering commitment to excellence made it the natural choice. We look forward to creating a landmark experience in Santiniketan with MAYFAIR Elixir."

Commenting on the signing, Randhir Gupta, Vice President – Commercial & Business Development, MAYFAIR Hotels & Resorts, said:

"Santiniketan has long been one of India's most celebrated cultural destinations. Yet, the market has remained underserved in the premium hospitality segment. This signing is a strategic addition to our growing portfolio, allowing us to introduce the MAYFAIR experience to a destination of global significance. Santiniketan perfectly aligns with our vision of expanding into culturally rich destinations with long-term tourism potential."

Bjorn DeNiese, Managing Director, MAYFAIR Elixir, added:

"This marks an exciting chapter in the growth journey of MAYFAIR Elixir. As we expand our footprint across India, our vision is not simply to add destinations, but to create hospitality experiences that celebrate the unique character and cultural identity of every place we enter. Santiniketan, with its extraordinary legacy of art, literature and learning, embodies the values we believe modern travellers increasingly seek."

He further said the company has several new destinations, hospitality concepts and strategic partnerships in the pipeline as it continues to grow its portfolio across India.

The latest signing reinforces MAYFAIR Hotels & Resorts' focus on expanding into culturally significant destinations while strengthening its presence in key tourism markets across the country.

Most Read In News

Swiggy Partners with FITPASS to Promote 360-Degree Wellness ...

Swiggy Ltd. has announced a strategic partnership with FITPA...

Atelier Expressions Acquires Majority Stake in Luxury Mithai...

Atelier Expressions, the premium lifestyle platform of TVS V...

Fairfield by Marriott Agra Strengthens Leadership Team with ...

Fairfield by Marriott Agra has announced the appointment of ...

IHCL's Taj Named India's Strongest Brand for the Fifth Conse...

Indian Hotels Company (IHCL), India's largest hospitality co...

ITC Hotels Reports Strong Q1 Growth, Accelerates Asset-Right Expansion

By Manu Vardhan Kannan

Published on July 18, 2026

ITC Hotels Ltd reported a strong start to FY27, posting double-digit growth across key financial metrics while continuing to expand its portfolio through its asset-right strategy.

During the first quarter, the company recorded consolidated revenue from operations of ₹936 crore, up 15% year-on-year. EBITDA increased 19% to ₹292 crore, while profit after tax (PAT) rose 36% to ₹182 crore, reflecting steady operational performance despite a challenging business environment.

The company said the quarter was impacted by uncertainty arising from the West Asia conflict, which affected international air travel and contributed to inflationary pressures. Demand remained subdued during April due to weaker foreign tourist arrivals, but travel sentiment improved significantly in May and June, leading to a strong recovery in occupancy and room rates.

Excluding branded residences, revenue from operations grew 10% year-on-year, supported by an 8% increase in room revenue, driven primarily by the retail segment. The company reported a 4% growth in Average Daily Rate (ADR), while occupancy improved by 290 basis points, resulting in an 8% year-on-year growth in RevPAR.

ITC Hotels maintained a 33% RevPAR premium over the industry, highlighting the continued preference for its brands and guest experience.

The company's food and beverage (F&B) revenue grew 11%, led by specialty restaurants and banquet business. Meanwhile, management fees increased 35% year-on-year, supported by strong performance at managed hotels in leisure destinations and the stabilisation of properties added over the previous year.

Operational efficiencies also improved during the quarter, with EBITDA margin (excluding branded residences) expanding by 125 basis points to 31%, driven by growth across rooms, F&B, management fees and ongoing cost management initiatives.

Among its operational highlights, ITC Ratnadipa reported positive EBITDA while retaining its leadership in RevPAR. The company also continued the phased handover of Sapphire Residences, with 16 apartments handed over so far.

As part of its asset-right growth strategy, ITC Hotels completed the acquisition of Kumarakom Resort & Spa and has begun a comprehensive renovation programme. The property is expected to reopen under the ITC Hotels luxury resort and spa brand by the third quarter of FY27.

The company also strengthened its development pipeline by signing eight new hotels across Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur and Zirakpur. It further marked the signing of the 25th Storii property at Amchong Tea Estate, Guwahati, while the opening of Fortune Bhimtal expanded its presence in the growing leisure travel segment.

On the sustainability front, ITC Hotels commissioned a 1.5 MWp captive solar plant at ITC Grand Bharat, increasing its total installed renewable energy capacity to 52.4 MW.

The company also strengthened its environmental credentials with ITC Royal Bengal becoming its 13th hotel to receive LEED Zero Water Certification, while Welcomhotel Vadodara achieved LEED Platinum Certification, taking the total number of LEED Platinum-certified hotels in its portfolio to 24.

Looking ahead, ITC Hotels said the outlook for India's hospitality sector remains positive, supported by the country's strong economic growth, infrastructure development, rising discretionary spending and favourable demand-supply dynamics, particularly across Tier I cities.