Suba Hotels Limited has reported strong growth momentum and portfolio expansion post IPO, according to its filing with SEBI. The company’s revenue for Q3 FY26 stood at Rs 35.28 crore, supported by the addition of 528 keys following its IPO, the company said in a statement.

The company highlighted that nearly 85 percent of its recent expansion has been asset-light, reinforcing capital efficiency and improving margin visibility. Its portfolio remains balanced across pilgrimage, leisure, business, and tourism-led markets.

For H1 FY26, Suba Hotels reported revenue of Rs 43.79 crore, marking a 49 percent year-on-year increase. EBITDA margin for the same period stood at 20.03 percent, reflecting an improvement of 66 basis points YoY. Profit after tax for H1 FY26 was reported at Rs 5.24 crore, an increase of 69 basis points, the statement added.

On its growth strategy, the company said it is focusing on pilgrimage and religious tourism across the Ayodhya–Ujjain–Vindhyachal belt. Its expansion continues to be driven by high-EBITDA, asset-light models through lease and revenue-share structures. Suba Hotels has also established an international presence in Dubai and is evaluating broader opportunities across the GCC region.

The company is pursuing a dual-market strategy with entry into tier I business hubs such as Hyderabad–Gachibowli, while scaling its presence in tier II and III cities benefiting from infrastructure development and tourism growth. It aims to maintain a balanced portfolio across leisure, industrial, IT, and religious demand, with a clear runway for ARR, occupancy, and EBITDA expansion without putting stress on the balance sheet. Strengthening direct bookings, loyalty programmes, and corporate contracts also remains a key focus to enhance margins.

Commenting on the performance, Mansur Mehta, Managing Director, Suba Hotels Limited, said, “India’s travel and hospitality demand is undergoing a structural shift, with growth increasingly driven by domestic travel, infrastructure-led connectivity, and rising activity in Tier II and Tier III markets. Suba Hotels is strategically positioned at the intersection of these trends, with a portfolio concentrated in high-demand micro-markets across business hubs, pilgrimage circuits, industrial clusters, and emerging leisure destinations. Our location-led strategy, with hotels positioned near airports, SEZs, highways, and key urban nodes, provides strong year-round occupancy visibility and reduces seasonality risk. This, combined with our diversified customer mix across corporate, leisure, MICE, weddings, and religious travel, enables stable cash flows and pricing resilience across cycles.”

Mubeen Mehta, CEO, Suba Hotels Limited, added, “In parallel, we have initiated our international expansion with the successful establishment of operations in Dubai, leveraging the Click Hotels brand in a high-demand, India-linked travel market. This marks an important step in building an asset-light international platform, with a disciplined approach to evaluating further opportunities across the GCC region. By combining domestic expansion in underpenetrated markets with selective international growth, supported by asset-light models, advanced revenue management, and strengthening direct and corporate channels, we are confident in our ability to scale sustainably, enhance returns on capital, and create long-term value for our investors.”

Union Budget 2026–27: Focus on Tourism, Skills and Destination Development

Presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman outlined a Yuva Shakti-driven roadmap anchored on economic growth, capacity building and inclusive development. From a hospitality and tourism perspective, the Budget places emphasis on skilling, infrastructure-led connectivity, destination creation and medical tourism, positioning travel and tourism as contributors to employment generation and regional development.

National Institute of Hospitality and Structured Upskilling of Tourist Guides

A key announcement for the hospitality sector is the proposal to establish a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology. The institute will function as a bridge between academia, industry and government, aimed at strengthening hospitality education, improving training standards and enhancing industry readiness.

In addition, the Budget proposes a pilot scheme to upskill 10,000 tourist guides across 20 tourist sites through a standardized, high-quality 12-week training programme delivered in hybrid mode. The initiative will be implemented in collaboration with an Indian Institute of Management, with a focus on improving visitor experience and professionalising guide services at key destinations.

Tourism Destination Development in Purvodaya and North-East

To support regional tourism growth, the Budget proposes the creation of five tourism destinations across the five Purvodaya States. Additionally, a Scheme for Development of Buddhist Circuits has been announced for Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. The scheme will cover preservation of temples and monasteries, development of pilgrimage interpretation centres, improved connectivity and enhanced pilgrim amenities.

Medical and Wellness Tourism Push

Strengthening India’s position as a medical tourism hub, the Budget proposes support for States to establish five Regional Medical Hubs in partnership with the private sector. These integrated healthcare complexes will include medical, educational and research facilities, AYUSH centres, Medical Value Tourism Facilitation Centres, and infrastructure for diagnostics, post-care and rehabilitation.

Infrastructure, Connectivity and City Economic Regions

Public capital expenditure has been increased to ₹12.2 lakh crore in FY 2026–27, reinforcing the government’s infrastructure-led growth approach. As part of this push, seven high-speed rail corridors will be developed as growth connectors to promote environmentally sustainable passenger systems, improving inter-city travel and tourism mobility.

The Budget also proposes mapping and development of City Economic Regions (CERs), with an allocation of ₹5,000 crore per region over five years. These regions are expected to leverage agglomeration benefits, supporting urban growth, business travel, conventions and hospitality-led mixed-use developments.

Support for MSMEs, Ease of Doing Business and Logistics Reforms

Recognising MSMEs as a key engine of growth, the Budget proposes a ₹10,000 crore SME Growth Fund to create future champions. This initiative is relevant for small and mid-sized hotels, restaurants, travel companies and tourism startups seeking access to capital and opportunities for scale.

The Budget also outlines multiple trade facilitation measures, including a single interconnected digital window for cargo clearance approvals and a shift to an operator-centric customs warehousing framework with self-declarations, electronic tracking and risk-based audits. These reforms are expected to benefit hospitality supply chains, food and beverage imports and event logistics.

Travel and Passenger Experience Measures

To ease travel-related costs, the Budget reduces TCS on overseas tour programme packages to 2 percent, from the earlier 5 percent and 20 percent slabs. In addition, baggage clearance provisions are proposed to be revised to enhance duty-free allowances in line with present-day travel realities, improving the overall international travel experience.

Sustainability and Green Mobility

High-speed rail corridors and investments in sustainable transport systems underline the Budget’s emphasis on environmentally responsible mobility. Improved connectivity is expected to support tourism dispersal, short-haul travel and the growth of emerging destinations.

Overall Outlook

With a combination of skilling initiatives, destination-focused development, infrastructure expansion and targeted tax reliefs, the Union Budget 2026–27 sets the foundation for experience-led tourism growth. The measures signal long-term intent to strengthen India’s hospitality ecosystem while supporting employment, regional inclusion and improved visitor experiences.

The year 2026 began on a positive note with the signing of the Free Trade Agreement between India and the European Union, a landmark deal widely described as the “mother of all deals” due to its far-reaching benefits for both economies. The agreement aims to address contemporary global challenges while enabling deeper market integration between the world’s fourth- and second-largest economies.

With a combined market size estimated at over INR 2091.6 lakh crore (USD 24 trillion), the FTA opens significant opportunities for nearly two billion people across India and the EU. The agreement delivers unprecedented market access for over 99% of India’s exports by trade value, while carefully preserving policy space for sensitive sectors and aligning with India’s long-term developmental priorities.

India has secured preferential access to European markets across 97% of tariff lines, covering 99.5% of trade value. Of this, 70.4% of tariff lines covering 90.7% of India’s exports will see immediate duty elimination. These include key labour-intensive sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and selected marine products. An additional 20.3% of tariff lines covering 2.9% of exports will receive zero-duty access over three to five years, while 6.1% of tariff lines covering 6% of exports will benefit from reduced tariffs or tariff rate quotas.

Several labour-intensive sectors including apparel, marine products, chemicals, plastics, rubber, toys, sports goods, gems, and jewellery, together accounting for exports worth over INR 2.87 lakh crore, will gain zero-duty access into the EU. These sectors were previously subject to duties ranging from 4% to 26%, and the agreement is expected to significantly enhance their competitiveness while supporting employment generation.

The agreement also provides preferential market access for agricultural products such as tea, coffee, spices, grapes, gherkins, cucumbers, dried onion, fresh fruits and vegetables, and processed food products. This move is expected to benefit Indian farmers while also enriching hospitality offerings in Europe through greater availability of Indian food products in hotels and restaurants. At the same time, India has safeguarded sensitive sectors including dairy, cereals, poultry, soymeal, and select fruits and vegetables, maintaining a balance between export growth and domestic priorities.

Lower duties of up to 10.5% on wooden, bamboo, and handcrafted furniture are expected to boost India’s presence in the European furniture market. The agreement supports growth in high-value, design-driven segments and is likely to encourage the use of Indian furniture in experiential hospitality spaces across EU member countries.

One of the most anticipated outcomes of the agreement is the expected reduction in prices of imported European products in India. Olive oil and gourmet food products, widely used in hospitality kitchens, are expected to see significant price drops. European chocolates, snacks, wines, and whiskies are also likely to become more affordable, supporting growth in India’s restaurant, bakery, and premium dining segments.

Beyond trade and pricing, the FTA also opens doors for cultural exchange and smoother mobility. Both sides have agreed to modernise Schengen visa processes, with faster processing timelines and joint action on visa fraud, making travel more accessible.

Overall, the India–EU Free Trade Agreement is expected to act as a major trendsetter in global trade relations. By improving affordability, expanding access to quality products, and strengthening hospitality and tourism linkages, the agreement is poised to deliver long-term economic and experiential benefits for both regions.