Commercial LPG Shortage Impacts Hotels Across India Amid Middle East Crisis

Commercial LPG Shortage Impacts Hotels Across India Amid Middle East Crisis

By Manu Vardhan Kannan

Published on March 10, 2026

A shortage of commercial LPG cylinders across India is beginning to affect hotel and restaurant operations, as supply disruptions linked to the ongoing tensions in the Middle East impact distribution across several cities.

The crisis is reportedly connected to geopolitical tensions involving Iran, Israel and the United States, which have disrupted LPG imports and created supply challenges for commercial establishments across the country.

Several hotels in Bengaluru have reportedly shut operations due to the shortage, while restaurants and hotels in Chennai began witnessing scarcity of commercial LPG cylinders since this morning. The disruption has affected kitchens that rely heavily on commercial gas for daily food preparation.

At the same time, the waiting period for consumer LPG cylinder bookings has reportedly been extended from 21 days to 25 days. This means households can now place a new order only after 25 days from the previous booking.

In a recent statement, Indian Oil Corporation said it has temporarily paused deliveries of commercial LPG cylinders and advised customers to explore alternative arrangements until the supply situation stabilises.

The shortage has also affected other major cities including Mumbai. Industry estimates suggest that nearly 20 percent of hotels and restaurants in the city have already shut operations, with as many as 50 percent at risk of closure in the next two to three days if the situation continues.

The Bangalore Hotels Association has expressed concern over the sudden halt in supply. In a statement, the association said, “Since the gas supply has stopped, hotels may have to close from tomorrow.” It also highlighted that hotels play an important role in providing daily meals for students, medical professionals and the general public.

Association president PC Rao said that despite earlier assurances from oil companies that supply would remain uninterrupted for 70 days, the sudden disruption has come as a “big blow” to the hospitality sector.

Industry bodies including the Federation of Hotel and Restaurant Associations of India (FHRAI) and the National Restaurant Association of India (NRAI) have formally requested government intervention. The organisations have cited widespread distribution disruptions and supplier hesitancy even though commercial LPG supply to restaurants was expected to continue without restrictions.

The impact is also visible in food delivery operations. Restaurants operating through platforms such as Zomato and Swiggy are witnessing reduced order volumes in certain areas due to kitchen limitations and temporary closures.

Smaller eateries and independent restaurants are expected to face the greatest impact as they depend entirely on LPG cylinders for cooking. Larger chains with alternative systems such as piped natural gas or electric kitchens have been able to continue operations with fewer disruptions.

Some establishments have already begun adjusting operations. A statement from Annapoorna Restaurant noted that the popular eatery will reduce operating hours and limit menu varieties until the supply situation improves.

The shortage could also lead to price increases for everyday food items such as tea, coffee and quick meals if the disruption continues for longer periods.

According to industry estimates, India consumes about 31.3 million tonnes of LPG annually, with nearly 87 percent used by households and the remaining share supplied to commercial establishments such as hotels and restaurants.

The government has begun responding to the situation by increasing refinery production and prioritising supply for essential sectors. Officials have also indicated that adequate stock is available through alternate supply routes, suggesting that the disruption may be temporary.

Industry experts believe the hospitality sector could face short-term operational challenges over the next three to seven days, after which supply is expected to stabilise as domestic production increases and logistics are restored.


IHCL’s Soulinaire Partners with IF.BE to Elevate Cultural Experiences in Mumbai

IHCL’s Soulinaire Partners with IF.BE to Elevate Cultural Experiences in Mumbai

By Manu Vardhan Kannan

Published on April 7, 2026

Indian Hotels Company Limited’s lifestyle catering brand Soulinaire has partnered with IF.BE (Ice Factory Ballard Estate), a well-known cultural centre in Mumbai. This collaboration marks a new phase for the 150-year-old restored industrial space, bringing together culture and curated hospitality experiences.

Mr. Kamal Malik, Founding Partner, IF.BE, said, “IF.BE has always been envisioned as a space where ideas, people and disciplines converge. Through this collaboration with Soulinaire we are able to extend that vision - bringing together strong cultural programming with a level of culinary refinement and operational depth that enhances every interaction within the space.”

Mr. Abhijit Mehta, Partner, IF.BE, said, “The collaboration brings together IF.BE’s curatorial focus with Soulinaire’s systems-led approach to refined, high-volume catering and service. Known for its emphasis on personalization, scale, and consistency, Soulinaire extends IF.BE’s offering beyond programming, introducing a more considered and cohesive food and beverage dimension across events, gatherings, and daily experiences.”

Located in Mumbai’s historic Ballard Estate, IF.BE is a unique cultural hub set inside a restored 150-year-old ice factory. The space blends heritage architecture with modern art and design, creating a platform for creativity, discussions, and community engagement.

Mr. Somnath Mukherjee, Executive Vice President - Operations, IHCL, said, “This partnership brings together two brands with a shared commitment to craft, culture and experience. IF.BE has evolved into a distinctive cultural destination within Mumbai’s urban fabric, and this association marks Soulinaire’s entry into one of the city’s historic precincts to curate experiences that are rooted in design and dialogue. We are happy to collaborate with Mr. Kamal Malik and Mr. Abhijit Mehta.”

The venue features three dining and social spaces, including Native Bombay, a modern Indian restaurant, The Banyan Tree Café set in a calm courtyard, and The Native Lounge, a contemporary bar. Along with this, IF.BE offers flexible event spaces such as The Ice Factory, The Cathedral, and The Substation, which host a range of activities from art exhibitions and conferences to brand showcases and private events.

With this collaboration, IF.BE and Soulinaire aim to create a more seamless mix of culture and hospitality, offering visitors well-curated experiences that bring together food, art, and social interactions in one space.


Atmosphere Core Enters Shillong with Boutique Hotel Project

Atmosphere Core Enters Shillong with Boutique Hotel Project

By Manu Vardhan Kannan

Published on April 7, 2026

Atmosphere Core has announced its expansion into Northeast India with the launch of a boutique hotel project in Shillong. The company has partnered with Shri Rocky Dhar to introduce DHAR GOLF VISTA by Atmosphere Shillong, marking its entry into the scenic hill station of Meghalaya.

Scheduled to open in 2027, the property will be located in the capital city of Meghalaya, around an hour from Shillong Airport and close to the well-known 18-hole Golf Link Arena. The project is positioned as an upper upscale boutique hotel, designed to cater to both leisure and business travellers.

Speaking about the development, Mr. Salil Panigrahi, Co-Founder & Managing Director of Atmosphere Core, said, “As part of our dynamic expansion across India, a key focus is our approach towards developing premium experiences in hill station destinations particularly in the beautiful northeastern region. This upcoming boutique property at Shillong, Meghalaya is being thoughtfully designed to cater to a diverse range of travellers from leisure seekers and corporate guests to curated events and social get-togethers”.

The hotel, operating under the Atmosphere Hotels & Resorts brand, will feature 75 keys, including deluxe rooms, suites, and presidential suites. Guests can expect views of the golf course, surrounding greenery, mountain valleys, and the city, creating a calm and immersive stay experience.

Dining will be a key highlight at the property, with an all-day dining restaurant offering outdoor seating, a themed sports pub, and a rooftop resto bar serving both local and international cuisine along with a wide selection of beverages.

The wellness experience will be led by the award-winning ELE|NA Ayur spa, offering therapy rooms and professional treatments aimed at relaxation and rejuvenation. Additional facilities will include a swimming pool with an outdoor deck facing the golf course, a golf simulation pavilion, a kids’ play area, and an indoor games room.

At an elevation of 1,496 metres, Shillong is known for its mix of natural beauty and cultural charm. Attractions such as Ward's Lake, Elephant Falls, Shillong Peak, and Umiam Lake continue to draw travellers throughout the year. The city is also known for its vibrant music culture and festivals like the Shillong Autumn Festival.

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Mr. Souvagya Mohapatra, Managing Director Atmosphere Core India, Bhutan, Nepal & Sri Lanka, added, “The Northeastern state’s hill stations have always been central to our vision of creating iconic luxury experiences. Shillong the capital city of Meghalaya, with its awe-inspiring cultural heritage backdrop and timeless appeal, is a natural choice for our expansion. As plans to enter this extraordinary destination unfold, I am confident that this collaboration will redefine hospitality in the region”.

Shri Rocky Dhar, owner of DHAR GOLF VISTA by Atmosphere, concluded, "Atmosphere Core’s distinguished legacy of excellence aligns perfectly with our vision to unveil a transcendent world-class hotel in Shillong. With our vision and focused approach, we are committed to manifesting inspiring, bespoke hotels and resorts that embody the pinnacle of sophistication. This illustrious partnership will not only elevate Shillong’s hospitality landscape but will also set an unrivalled benchmark for elegance and impeccable service in this breathtaking and scenic Northeastern state of India."


IHCL Signs Gateway Hotel and Convention Centre Near Bengaluru Airport

IHCL Signs Gateway Hotel and Convention Centre Near Bengaluru Airport

By Manu Vardhan Kannan

Published on April 7, 2026

Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced the signing of a Gateway Hotel and Convention Centre in Kanamangala, Devanahalli, near Kempegowda International Airport, Karnataka. This will be a greenfield project, marking another step in the company’s expansion in North Bengaluru.

Speaking on the development, Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Bengaluru is widely recognised as one of India’s fastest-growing cities, driven by a strong business ecosystem and sustained infrastructure development. With the rapid expansion around the airport, North Bengaluru has emerged as a significant growth corridor, and this signing aligns with our strategy to build scale in the micro-market addressing the rising demand from corporate and MICE segments. We are delighted to partner with Hombale Group for this project.”

The upcoming 300-key Gateway Hotel and Convention Centre in Kanamangala, Devanahalli, will feature an all-day dining restaurant, a bar, a specialty restaurant, and a lounge. Guests will also have access to a fully equipped gym and a swimming pool, offering a comfortable stay experience.

As a convention centre, the property will include spacious and flexible banquet and meeting spaces. The largest banquet hall will span over 16,000 sq. ft., making it suitable for large conferences, corporate gatherings, and social events.

Ms. Shailaja Vijay Kiragandur of Hombale Group said, “We are happy to partner with IHCL to bring the Gateway brand to North Bengaluru aligning with the region’s growth trajectory.”

Bengaluru, often referred to as the Silicon Valley of India, continues to grow as a major hub for IT, biotechnology, aerospace, and advanced manufacturing. The steady development around the airport region has made North Bengaluru an important zone for hospitality growth.

With this addition, IHCL will expand its presence in the city to 20 hotels, including 11 currently under development.

Hombale Group, the owning company, is engaged in both construction and film production. The group has completed over 10 million sq. ft. of construction across various state and central Government projects. Hombale Films, founded by Mr. Vijay Kiragandur in 2014, is also recognised as one of the leading film production houses in South India.

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