FHRAI Advocates for GST Reform: Proposes Delinking F&B Rates from Hotel Tariffs

FHRAI Advocates for GST Reform: Proposes Delinking F&B Rates from Hotel Tariffs

By Nishang Narayan

Published on November 28, 2024

The Federation of Hotel & Restaurant Associations of India (FHRAI), the third-largest hospitality association globally, has reiterated its demand for delinking Food & Beverage (F&B) service rates from hotel room tariffs. This appeal was presented during the DG GST Samvad meeting on November 14, 2024, where key FHRAI leaders, including Vice President Mr. Pradeep Shetty, voiced the hospitality industry's concerns.

Currently, the GST on F&B services is linked to hotel room tariffs, creating operational complexities and policy inconsistencies. For hotels with room tariffs exceeding ₹7,500, F&B services are taxed at 18% with input tax credit (ITC), while those below ₹7,500 are taxed at 5% without ITC. This structure has been challenging, particularly for midscale hotels, hampering their ability to dynamically adjust room pricing and manage compliance efficiently.

A Call for Simplicity and Neutrality

FHRAI proposed delinking F&B rates from accommodation charges to simplify compliance, enhance tax neutrality, and foster industry growth. “The current policy deviates from GST’s principles of neutrality and simplicity,” stated Mr. Shetty. “Delinking will empower the industry to adopt market-driven pricing strategies while ensuring operational efficiency and revenue neutrality for the government.”

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FHRAI also advocated introducing an 18% GST slab with ITC benefits for standalone restaurants. This move could reduce operational costs and boost tax compliance, further supporting the sector’s growth trajectory.

A Balanced Solution for Growth

By decoupling F&B charges from room tariffs, FHRAI envisions a level playing field for midscale and high-tariff hotels. The proposed changes promise to enhance tax compliance, streamline operations, and enable hotels to respond flexibly to market trends, potentially increasing GST revenues through higher room tariffs.

About FHRAI

Established in 1955, FHRAI serves as the apex body of India’s hospitality industry. Representing hotels and restaurants nationwide, the association plays a pivotal role in shaping the sector’s growth, fostering collaboration with government and international bodies, and advocating for industry-friendly policies.

The hospitality industry now awaits the GST Council’s decision, which could mark a significant step toward a fairer and more growth-friendly tax regime.


Machan Resorts LLP Reports Strong Growth, Eyes Expansion in 2025

Machan Resorts LLP Reports Strong Growth, Eyes Expansion in 2025

By Manu Vardhan Kannan

Published on March 18, 2025

Machan Resorts LLP, a leading hospitality group with over three decades of excellence, has recorded exceptional growth in 2024, driven by rising interest in experiential travel and sustainable luxury.

Key performance indicators highlight this upward trend, with a 7% rise in occupancy rates, a 10% boost in Average Daily Rate (ADR), and a 5% increase in Revenue Per Available Room (RevPAR). While Maharashtra remains a key market, Rajasthan has quickly gained momentum, spurred by an uptick in destination weddings and growing international tourist arrivals.

Despite facing industry-wide challenges such as rising operational costs and evolving guest expectations, Machan Resorts has continued to expand steadily. Strategic infrastructure investments, sustainability initiatives, and supportive government policies have strengthened the group’s position as a leader in luxury eco-hospitality, appealing to both business and leisure travelers.

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"We are optimistic about our future and anticipate a projected growth of 12% in revenue and 200% in the number of keys," said Rakshit Sharma, COO of Machan Resorts, at the company’s year-end corporate management meet held at The Machan in Lonavala.

He added, "We remain committed to pushing boundaries and elevating our guest experience, ensuring even greater milestones in the year ahead."

The Machan, the group’s flagship property, is an award-winning eco-resort in Lonavala, celebrated for its luxurious tree houses offering serene escapes amid nature. Beyond The Machan, the group owns Legacy Mandawa, a heritage haveli in Rajasthan, and is actively expanding its portfolio with new developments in Jaisalmer, Udaipur, Mulshi, Pawna, Pune, and Karjat.


ROHL Unveils Two New Regenta Hotels in Goa, Eyeing Weddings and MICE

ROHL Unveils Two New Regenta Hotels in Goa, Eyeing Weddings and MICE

By Manu Vardhan Kannan

Published on March 18, 2025

Royal Orchid Hotels Ltd. (ROHL) has strengthened its presence in Goa by opening two fresh properties under its Regenta brand in the scenic town of Colva, pushing its total count in the region to six. The newly launched Regenta Baywatch Resort and Regenta Beach House, both located just a short stroll from Colva Beach, offer an appealing blend of modern architecture and coastal elegance. Designed with both business and leisure travelers in mind, these twin hotels are ideal for hosting corporate gatherings, grand weddings, and memorable celebrations.

The Regenta Beach House stands out as a boutique coastal retreat, boasting a private beach with stunning ocean views. Positioned as a premium venue for upscale events, this 18-key property features a versatile beachfront space capable of hosting up to 1,000 guests. Guests can also enjoy ocean-facing rooms and suites for a luxurious stay. Food lovers will find curated dining options like 'Cibo Sano', which specializes in healthy, guilt-free cuisine, and 'Salty Breeze', a charming seaside restaurant known for its relaxed ambiance and panoramic views of the Arabian Sea.

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Just around the corner, the Regenta Baywatch Resort offers a larger set-up with 133 thoughtfully designed rooms and suites that reflect a blend of minimalist design and contemporary style, staying true to the ROHL brand's hallmark of understated elegance. The resort houses a range of dining options, including an all-day dining restaurant, a specialty outlet, a terrace restaurant, and a bar. Guests can unwind by the pool or rejuvenate at the in-house spa. The property also boasts several banquet halls and sprawling lawns, making it a top pick for social functions, destination weddings, and corporate events.

In 2024, Goa welcomed nearly 10 million visitors, reinforcing its reputation as one of India's most popular travel destinations. These two new ROHL hotels provide easy access to Sernabatim Beach, Colva, and other idyllic coastal spots while offering unmatched hospitality. The close proximity of both properties also allows them to accommodate large groups with ease, catering perfectly to guests visiting for special celebrations and large-scale events.

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Sharing his thoughts on the launch, Arjun Baljee, President of Royal Orchid Hotels Ltd., stated, “Building on our 15+ year legacy in Goa, ROHL is proud to announce the launch of two new signature properties that will further solidify our commitment to elevating the state's hospitality landscape and delivering unparalleled guest experiences. With their unique locations and superior amenities, we're confident that these two hotels will carve out a distinct presence in Goa's thriving market especially for weddings and MICE events. We're excited to collaborate with Mr Ajit Patel to bring this vision to life.”

Ajit Patel, Director of HARP Resource Pvt Ltd and Prudential Landmark Pvt Ltd, added, “We are thrilled to partner with ROHL, a trusted name in hospitality sector. We are confident that Regenta Baywatch Resort and Regenta Beach House will not only elevate Goa's tourism appeal but will also set new benchmarks in the industry catering to all kinds of guests.”


IHCL Achieves 10 Million Loyalty Members Milestone

IHCL Achieves 10 Million Loyalty Members Milestone

By Nishang Narayan

Published on March 17, 2025

Indian Hotels Company Limited (IHCL), India's largest hospitality company, has reached a significant milestone, with its Taj InnerCircle loyalty program, integrated into Tata Neu’s NeuPass, surpassing 10 million members. This achievement reflects IHCL’s strong digital transformation, leveraging the One Tata ecosystem to enhance customer engagement.

Parveen Chander Kumar, Executive Vice President – Commercial, IHCL, emphasized the program's impact, stating, "The rapid growth of our loyalty member base with NeuPass is a testament to the power of the One Tata ecosystem. Today, loyalty-driven revenue contributes over 40% of IHCL’s total enterprise revenue. We are committed to enhancing lifetime customer value and leveraging technology to enrich guest experiences across our diverse portfolio, from mid-scale to luxury hospitality."

5X Growth in Loyalty Members & Digital Expansion

IHCL’s loyalty program has grown fivefold, culminating in this 10-million-member milestone. The integration with Tata Neu, spanning travel, hospitality, shopping, and financial services, has provided IHCL with a competitive edge in attracting and retaining members. The combination of enhanced rewards, seamless booking experiences, and exclusive privileges has significantly strengthened customer loyalty and engagement.

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About IHCL

With a legacy dating back to 1903, IHCL is a leader in Indian hospitality, known for brands such as:

  • Taj – Ranked World’s Strongest Hotel Brand 2024 & India’s Strongest Brand 2024 by Brand Finance
  • SeleQtions – A curated collection of hotels
  • Tree of Life – Private escapes in tranquil settings
  • Vivanta – Sophisticated upscale hotels
  • Gateway – Full-service hotels
  • Ginger – Pioneering the lean luxe segment

IHCL operates 368 hotels, with 128 under development across 4 continents, 14 countries, and 150+ locations, making it India’s largest hospitality company by market capitalization.

For more information, visit: [IHCL Website]

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