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.


ROHL Expands in Maharashtra with Regenta Central Shivani in Solapur

ROHL Expands in Maharashtra with Regenta Central Shivani in Solapur

By Nishang Narayan

Published on July 9, 2025

Royal Orchid Hotels Ltd. (ROHL) continues to build on its growth momentum in Maharashtra with the launch of Regenta Central Shivani, Solapur. Strategically located in the MIDC area on the scenic Bhima and Seena river basins, the new property marks ROHL’s 13th hotel in the state and the fourth launch this year.

Regenta Central Shivani features 65 well-appointed rooms, including three accessible rooms, designed with a Rajasthani theme that blends local character with modern comfort. Thoughtfully crafted to cater to both business and leisure travellers, the hotel offers a range of amenities such as a swimming pool, spa, and gym.

The property stands out with the largest common area in Solapur, housing ROHL’s signature all-day dining restaurant that accommodates 170 guests, a cozy lobby cafe, and a vibrant poolside bar with 40 covers. For events, it provides versatile spaces including a 1000 sq ft meeting room, an expansive 8600 sq ft banquet hall, and a sprawling 25,000 sq ft lawn, making it ideal for everything from small gatherings to medium-scale celebrations.

Speaking on the launch, Chander Baljee, Chairman and Managing Director of Royal Orchid Hotels Ltd., shared, “We are thrilled to expand our presence in Maharashtra with our 13th property in the state, addressing the growing demand for tourism and business accommodations. Solapur, with its rich tradition of textiles, handicrafts, and leather goods, serves as a strategic commercial hub with excellent connectivity to cities like Hyderabad and Pune. This expansion aligns with our plans to penetrate micro-markets with properties ranging from upscale hotels to value stays. We are excited to partner with Mathura Agro for Regenta Central Shivani, Solapur.”

Venugopal Karwa and Lavesh Karwa, MDs of Mathura Agro Industries, added, “This collaboration with ROHL is an exciting milestone for us. With the introduction of the Regenta brand’s fresh and vibrant energy to Solapur, we look forward to offering our guests a distinctive and exceptional experience.”

Located just four hours from Pune and Hyderabad, Solapur is known as the textile city and is surrounded by iconic temples such as Tuljapur, Pandharpur, and Akkalkot, adding cultural richness to its commercial appeal.

With this launch, ROHL continues to strengthen its footprint in key micro-markets across India, offering a blend of upscale hospitality and value-driven stays.


IHCL to Open Vivanta Jaipur in Jagatpura, Strengthening Rajasthan Portfolio

IHCL to Open Vivanta Jaipur in Jagatpura, Strengthening Rajasthan Portfolio

By Nishang Narayan

Published on July 9, 2025

Indian Hotels Company (IHCL) has announced the signing of a new greenfield hotel in Jaipur, Rajasthan, under its Vivanta brand. The 160-key Vivanta Jaipur will come up in Jagatpura, making it the closest hotel to the newly renovated Terminal 1 of Jaipur International Airport.

This upcoming property will feature an all-day dining restaurant, a bar, a specialty rooftop restaurant, a fully equipped gym, swimming pool, health club, and state-of-the-art conference facilities. Designed to cater to both leisure travellers and the growing business and MICE segments, it aims to deliver a world-class hospitality experience.

Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Fuelled by major infrastructure developments, Jaipur has rapidly evolved as a key regional hub, significantly boosting demand from business and MICE segments apart from the long-established leisure segment. This signing aligns with IHCL’s strategy to expand presence in such high-growth micro markets of metros and state capitals across India. We are delighted to collaborate with Dinesh Choudhary, Vivek Choudhary and Rajat Choudhary for this project.”

The project is a collaboration with Wonder Build Developers Private Ltd. Speaking on the partnership, Vivek Choudhary, Director, Wonder Build Developers, shared, “We are proud to partner with IHCL to bring the Vivanta brand to Jaipur. This collaboration will contribute to the city’s growing hospitality landscape and offer a world-class experience to travelers. With IHCL’s expertise and the strong brand recognition of Vivanta, we are confident that the hotel will emerge as a preferred destination.”

With this addition, IHCL’s portfolio in Rajasthan will grow to 31 hotels, including 8 under development. Wonder Build Developers, led by Dinesh Choudhary and his sons Vivek and Rajat, has a diversified business portfolio spanning infrastructure development, real estate, NBFC, and hospitality.


Marriott to Bring Westin to Ludhiana with Vardhman Amrante

Marriott to Bring Westin to Ludhiana with Vardhman Amrante

By Nishang Narayan

Published on July 7, 2025

Marriott International has signed an agreement with Vardhman Amrante, an Oswal Group venture, to bring its premium wellness-focused Westin brand to Ludhiana. The Westin Ludhiana is slated to open in the last quarter of 2030, marking the brand’s debut in Punjab’s industrial and cultural hub.

Planned as part of a vibrant mixed-use development, the new hotel will feature 200 keys alongside retail outlets, a multiplex, and a gaming zone, adding fresh energy to Ludhiana’s growing urban landscape.

Highlighting Marriott’s strategic expansion into high-growth markets, Ranju Alex, regional vice president – South Asia, Marriott International, shared, “Through this collaboration, we aim to redefine guest service while unlocking Ludhiana’s potential. The Westin Ludhiana will empower guests to be the best version of themselves, maintaining their well-being even as they travel.”

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Echoing the excitement, Adish Oswal, chairman of Oswal Group, said, “We’re thrilled to partner with Marriott International to bring the acclaimed Westin brand to Ludhiana. This development is set to become a landmark, offering a wellness-driven luxury experience that matches the city’s growing stature as a regional powerhouse.”

The Westin Ludhiana promises a robust mix of experiences — from multiple dining venues and a chic Lobby Bar to the WestinWORKOUT Fitness Studio, Heavenly Spa by Westin, and an outdoor pool. Business and leisure travellers alike will benefit from the expansive banqueting spaces, lush outdoor lawns, and an exclusive Executive Club Lounge.

With its focus on holistic wellness, the upcoming hotel underscores Marriott’s continued commitment to cater to evolving traveller needs and further strengthen its footprint across India.

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