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.


Hyatt Signs The Landmark Kanpur as India’s Second JdV by Hyatt Hotel

Hyatt Signs The Landmark Kanpur as India’s Second JdV by Hyatt Hotel

By Hariharan U

Published on October 3, 2025

Hyatt Hotels Corporation has announced the signing of The Landmark Kanpur, which will soon join the JdV by Hyatt portfolio, becoming India’s second hotel under this lifestyle brand. The property, owned by Som Datt Landmark Hotels and Recreations Private Limited, is set to open in 2026.

Located in one of Kanpur’s most prestigious neighbourhoods, the hotel is being thoughtfully restored to reflect the JdV by Hyatt ethos while building on The Landmark’s rich legacy in the city. Once open, it will feature 170 guest rooms, a spa, four food and beverage outlets, and expansive event spaces, including a 7,200 sq. ft. lawn on the 21st floor, designed to serve both corporate travellers and social gatherings.

The JdV by Hyatt brand short for joie de vivre is known for its vibrant, independent hotels that capture the spirit of their neighbourhoods while offering heartfelt, joy-driven hospitality. With this signing, Hyatt continues to expand its presence in India’s fast-growing lifestyle and experience-driven hotel segment.

Speaking on the development, Dhruva Rathore, Vice President, Real Estate & Development for India & South West Asia, Hyatt, said, “We're thrilled to welcome The Landmark Kanpur to the JdV by Hyatt family. This association reflects our commitment to collaborating with exceptional local operators to deliver unique guest experiences in promising markets. Building on The Landmark's esteemed legacy in Kanpur, we're excited to take this property to new heights.”

Echoing the sentiment, Vikas Malhotra, Managing Director, Som Datt Landmark Hotels and Recreations Pvt. Ltd., added, “As Kanpur’s first and only five-star hotel, The Landmark has long been a pioneer in the city’s hospitality landscape. Collaborating with Hyatt and joining the JdV by Hyatt brand marks an exciting new chapter – one that brings global standards of service while retaining our deep local roots. We look forward to welcoming guests to an enhanced, reimagined experience.”

This signing underscores Hyatt’s strategy to strengthen its lifestyle portfolio in India, offering travellers distinctive stays that combine global quality with strong local character.


Sterling Opens Rampath Ayodhya Resort, Blending Devotion with Comfort

Sterling Opens Rampath Ayodhya Resort, Blending Devotion with Comfort

By Hariharan U

Published on October 3, 2025

Sterling Holiday Resorts has expanded its footprint into Uttar Pradesh with the launch of Sterling Rampath Ayodhya, its 67th property and 57th destination. Located just steps away from the ceremonial Ram Path, the hotel offers pilgrims, families, and culture-seekers a perfect retreat while visiting the Ram Mandir.

With this opening, Sterling marks its 11th spiritual location, reinforcing the brand’s vision of offering journeys that balance devotion with modern comfort. The move comes at a time when Ayodhya is emerging as one of India’s most significant spiritual destinations, attracting a rising wave of travellers seeking cultural immersion.

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The boutique hotel features 35 thoughtfully designed rooms, across Cocoon Double, Deluxe, and Classic categories, crafted to provide calm and comfort after temple visits. Dining is led by The Divine, a pure-veg restaurant serving sattvic-inspired meals, with special Jain options available on request reflecting the ethos of Ayodhya itself.

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Speaking about the launch, Vikram Lalvani, MD & CEO of Sterling Holiday Resorts, said, “Ayodhya is at the heart of India’s spiritual and cultural renaissance. Sterling Rampath Ayodhya is more than a hotel — it is a gateway to devotion and discovery, serving guests who arrive with faith, families, and a sense of cultural curiosity.”

Adding to this, Rishi Uppal, Director, Kalyan KK Hotels India Pvt Ltd., shared, “Ayodhya is emerging as one of India’s most important spiritual destinations. Our vision was to create a property that not only serves pilgrims with comfort and care but also honours the cultural fabric of the city. In Sterling, we found a partner who shares this vision.”

Sterling’s spiritual portfolio has been growing steadily, with recent openings in Guruvayur, Vellore, and Rudraprayag. The addition of Ayodhya strengthens the company’s mission to bring together tradition, devotion, and hospitality across sacred destinations in India.

About Sterling Holiday Resorts Ltd.

Sterling Holiday Resorts Limited is among India’s leading hospitality brands, with 64 resorts, hotels, and retreats across 55 unique destinations, offering over 3,400 rooms. Its properties cover hills, beaches, jungles, pilgrimage sites, heritage towns, and drive-to locations. The company caters to leisure travellers, MICE, weddings, and group events. Sterling is a 100% independently managed subsidiary of Thomas Cook (India) Ltd., part of Fairfax Financial Holdings Limited.

For bookings and more information, visit www.sterlingholidays.com


Sterling Unveils Kadumane Hills Sakleshpur, a Boutique Retreat in the Western Ghats

Sterling Unveils Kadumane Hills Sakleshpur, a Boutique Retreat in the Western Ghats

By Hariharan U

Published on September 29, 2025

Sterling Holiday Resorts has launched Sterling Kadumane Hills Sakleshpur, a boutique resort created as a sanctuary for those looking to unplug, reconnect, and rejuvenate amidst nature. This marks Sterling’s first boutique property in Sakleshpur and the fourth in Karnataka.

Located high on a scenic hill in the Western Ghats, the resort welcomes guests with a signature 4x4 jeep ride that sets the tone for an offbeat adventure. Spread across 14 acres of untouched landscape, the property features handcrafted wooden cottages that open to sweeping views of valleys and forests, blending comfort with the spirit of slow travel.

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At Rasavati, the resort’s dining space, food takes a wellness-first approach with wholesome vegetarian meals and Malnad-inspired specials. Guests can further unwind at the wellness centre, which offers authentic Ayurvedic therapies aimed at holistic healing. For those seeking adventure, options include treks to hidden waterfalls, birdwatching, plantation walks, and a visit to the famed Bisle Ghat viewpoint, often called “India’s Amazon.”

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Speaking about the launch, Vikram Lalvani, MD & CEO, Sterling Holiday Resorts, said, “Sterling Kadumane Hills Sakleshpur is a milestone in our journey to create immersive, boutique resorts that redefine leisure travel. This property is designed as an expansive canvas for discovery—where wellness, slow travel, and mindful living come together.”

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Mr. Raghavendra, Owner, Kadumane Hills Resorts, added, “We are delighted to partner with Sterling, who bring deep expertise and a shared vision for ‘slow travel’ in this region. Together, we aim to create experiences that highlight the culture, cuisine, and natural beauty of Sakleshpur.”

The retreat’s tranquil setting and intimate vibe make it ideal for couples, families, wellness seekers, and offbeat travellers who want more than just rest they return home refreshed and renewed.

Sterling Kadumane Hills Sakleshpur is located 17 km from Sakleshpur town and about 224 km (roughly 5.5 to 6 hours by road) from Bangalore. The nearest airport is Mangalore International Airport, around 3.5 hours away.

With this launch, Sterling reinforces its growing portfolio of resorts across India, offering experiences that range from hill stations and jungles to beaches and heritage towns.

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