FHRAI Calls for Regulatory Reforms to Boost India's Tourism and Hospitality Sector in Pre-Budget Meeting Chaired by FM Sitharaman

FHRAI Calls for Regulatory Reforms to Boost India's Tourism and Hospitality Sector in Pre-Budget Meeting Chaired by FM Sitharaman

By Nishang Narayan

Published on June 27, 2024

The Finance Minister, Nirmala Sitharaman, chaired a crucial pre-budget conference at North Block in New Delhi on June 25, 2024. The meeting was attended by the Federation of Hotel and Restaurant Associations of India (FHRAI) and other apex associations from the trade and service sectors ahead of Budget 2024-25. During the meeting, FHRAI presented critical suggestions aimed at boosting the tourism and hospitality industry and enhancing India’s tourism potential on the global stage.

Representing the hospitality sector in the country, FHRAI expressed optimism about India’s future as a global tourism powerhouse by 2047. The association proposed essential regulatory changes to support industry growth, emphasizing strategic reforms to address current challenges and unlock growth opportunities aligned with sector targets.

One of the key requests put forward by FHRAI was to grant Infrastructure Status for hotels across all categories and convention centres built at a project cost of Rs.10 crore and above. This move aims to boost the budget segment in the hotel industry.

GST rationalisation was another significant concern highlighted by Mr. Pradeep Shetty, President of FHRAI. The Federation requested a uniform 12% GST rate across all hotels and the delinking of restaurant tariffs from room tariffs. The current system of GST shifting to different slabs in the same hotel on different dates, depending on room rates, creates compliance issues and confusion among the public. Although there is no tax evasion, this confusion has become a major issue for hotels across the country due to notices and demands from the GST department.

Pradeep Shetty remarked, “Granting infrastructure status to hotels and convention centres across all cities is crucial for attracting investments and accelerating growth in the hospitality sector. This aligns with the Prime Minister's vision of tourism having the same potential as agriculture and real estate. We are encouraged by the Finance Minister's assurance of support in addressing these crucial needs of the industry.”

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He added, “We are confident in the Ministry's commitment to implementing GST rationalization for the hospitality sector. FHRAI remains dedicated to fostering a robust hospitality sector that supports India’s flourishing tourism industry, which has a multiplier effect on the economy and employment generation.”

FHRAI highlighted the significance of efforts under the “Incredible India” campaign and recommended enhancing the budget for tourism branding. They also requested specific measures to promote MICE tourism in the country.

The Finance Ministry acknowledged the concerns of the industry and promised to provide the necessary support to help the sector. The outcome of these discussions is anticipated to be reflected in the next budget, which will strive to expand India’s thriving tourist and hospitality industries.

About the Federation of Hotel and Restaurant Associations of India (FHRAI):

Founded in 1955, the Federation of Hotel and Restaurant Associations of India (FHRAI) is the apex body of the Indian hospitality industry and the third-largest hospitality association in the world. FHRAI serves as the leading voice of the hotel and restaurant industry and plays a pivotal role in supporting the growth trajectory of India’s hospitality and tourism sectors. The association provides a vibrant interface between the hospitality industry, government, regulatory bodies, academia, international organizations, civil society, and the media.


Lemon Tree Hotels Signs 76-Room Hotel in Sirhind, Punjab

Lemon Tree Hotels Signs 76-Room Hotel in Sirhind, Punjab

By Manu Vardhan Kannan

Published on November 1, 2026

Lemon Tree Hotels Limited has announced the signing of Lemon Tree Hotel, Sirhind, a 76-room property in Punjab's Fatehgarh Sahib district. The hotel will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited.

The upcoming property will feature 76 well-appointed rooms, a restaurant, banquet hall, meeting and conference room, swimming pool, spa, fitness centre and other public areas. It aims to cater to pilgrims, leisure travellers, business guests and transit visitors by bringing accommodation, dining, wellness and event facilities under one roof.

Sirhind is known for its historical, cultural and religious heritage. Its connectivity to Chandigarh and nearby commercial hubs makes it a destination for travellers visiting the region's historical landmarks and cultural attractions, as well as those travelling for business.

Commenting on the signing, Vishvapreet Singh Cheema, President, Lemon Tree Hotels Ltd., said, “Our growing presence in Punjab reflects the diverse opportunities the state offers across business, religious tourism and leisure. Sirhind’s rich religious and historical heritage, coupled with its regional connectivity, makes it a compelling addition to Lemon Tree Hotels network. With four operational hotels and 10 upcoming properties in the state, we continue to build a portfolio that responds to the distinct demand drivers of each destination.”

The hotel will also have access to key transport links. Sirhind Junction is approximately 3.5 km from the property, while Shaheed Bhagat Singh International Airport in Chandigarh is around 45 km away. With this signing, Lemon Tree Hotels continues to expand its presence in Punjab, where it currently has four operational hotels and 10 upcoming properties, according to the company.


True Palate Hospitality Targets 50 Outlets and ₹1,000 Crore Revenue by 2030

True Palate Hospitality Targets 50 Outlets and ₹1,000 Crore Revenue by 2030

By Manu Vardhan Kannan

Published on October 31, 2026

True Palate Hospitality, the company behind One8 Commune, Neuma and Pincode, is targeting 50 outlets and revenue of ₹900–1,000 crore by 2030. With around 20–22 outlets currently operating across India and international markets, the company plans to expand its restaurant portfolio over the next five years with a planned investment of ₹30–40 crore.

As part of its expansion plans, One8 Commune has signed projects in Guwahati, Dehradun and Raipur. The Guwahati outlet will mark the brand's entry into Northeast India. Pincode is also preparing to expand its domestic presence, with signed projects in Surat and Ahmedabad. Meanwhile, Neuma is exploring further opportunities, including a potential location in Goa. The company is also evaluating markets where its existing brands have shown promising performance.

True Palate Hospitality recorded revenue growth of more than 40% during its earlier expansion phase between 2022 and 2024. Its current year-on-year growth stands at approximately 15–20%. Going forward, the company plans to focus on carefully selecting markets, strengthening its teams and improving operational capabilities to support long-term growth.

Commenting on the expansion plans, Vartik Tihara, Co-Founder and Director, True Palate Hospitality, said, "Our ambition is to build a portfolio of hospitality brands that can grow across markets while retaining a distinct identity and a strong connection with their audiences. We are targeting 50 outlets over the next five years, with a revenue ambition of ₹900–1,000 crore by 2030. Our focus is on expanding our existing brands in a way that makes commercial sense, identifying the right markets and ensuring that each format has room to grow. We see opportunities across both established and emerging dining destinations, and our priority is to scale thoughtfully while building a sustainable business."

The planned investment of ₹30–40 crore will support new outlet development and strengthen the company's operational and leadership capabilities. Markets such as Goa, Surat and Ahmedabad are among those being considered for further expansion as the company looks to balance growth with commercial viability.

Aditi Tihara, Senior Vice President, True Palate Hospitality, highlighted the importance of operational readiness as the company enters new markets. She said, "Scaling a hospitality business requires much more than opening new locations. Every expansion involves identifying the right talent, training teams, establishing robust operating processes and ensuring that the experience associated with each brand translates consistently on the ground. One8 Commune, Neuma and Pincode each have a distinct identity, audience and operating model, and our approach must reflect those differences while maintaining the standards guests expect. As we enter new markets, our priority is to build the operational capabilities that allow us to grow sustainably, maintain quality across locations and keep the guest experience at the centre of every decision."

The company is also considering a combination of company-owned outlets and franchise-led models for future growth. The approach will depend on individual projects, market conditions and commercial viability, allowing True Palate Hospitality to manage its investments while expanding its brands across different markets.

Beyond restaurants, the company is developing its experiential entertainment offering through Commune Circus, a hospitality-led intellectual property that brings curated entertainment experiences to its outlets. The initiative features personalities from cricket and the entertainment industry, giving guests opportunities to interact with them in an intimate setting. The tour has travelled across One8 Commune locations in Aerocity, Delhi; Juhu, Mumbai; Goa; and Golf Course Road, Gurugram.

With its focus on expanding its restaurant portfolio, strengthening operations and exploring new business models, True Palate Hospitality is working towards its 2030 targets while building on the distinct identities of One8 Commune, Neuma and Pincode.


Heritage River Journeys Orders Two Luxury Cruise Vessels for the Brahmaputra

Heritage River Journeys Orders Two Luxury Cruise Vessels for the Brahmaputra

By Manu Vardhan Kannan

Published on October 31, 2026

Heritage River Journeys Private Limited has placed a repeat order with Hooghly Cochin Shipyard Limited (Hooghly-CSL) for the construction of two luxury river cruise vessels, each featuring 40 suites. Valued at approximately ₹250–300 crore, the order marks another step in the company's long-term investment in India's luxury river cruise and inland waterway infrastructure.

The contract was signed at SAGARMANTHAN in New Delhi on October 29, 2026, in the presence of Hon’ble Union Minister of State for Ports, Shipping and Waterways Shri Shantanu Thakur and distinguished international dignitaries. Heritage River Journeys was represented by its Founder, Mr. Raj Singh, and Chief Operating Officer, Mr. Vineet Arora.

The latest order follows a commitment made by Raj Singh to Assam Chief Secretary Ravi Kota, IAS, in July 2026 to invest ₹500 crore in the Brahmaputra. It also builds on an earlier vessel order placed in June 2025, reflecting the company's continued focus on developing a modern fleet designed specifically for India's rivers. The two new vessels are scheduled for delivery in June 2029 and June 2030, respectively, and will operate on the Brahmaputra River.

As interest in experiential travel, destination-led tourism and river journeys grows, investments in cruise infrastructure can support India's wider tourism ecosystem. These developments have the potential to create local employment, strengthen hospitality services, support destination development and benefit businesses connected with tourism and inland waterways. Through this repeat order, Heritage River Journeys aims to expand luxury river cruising in India while contributing to the infrastructure required to unlock the tourism potential of the country's rivers.

Building a Legacy of River Cruising in India

Heritage River Journeys began its river cruising journey with the launch of Bengal Ganga in 2008 under the aegis of Antara Cruises. Since then, the company has expanded its fleet to include Bengal Ganga, Ganges Voyager I, Ganges Voyager II and Ganga Vilas. The landmark itinerary of Ganga Vilas was inaugurated by Prime Minister Shri Narendra Modi.

The company has also expanded into private luxury and wildlife experiences with Nauka Vilas on the Hooghly River and four luxury catamaran yachts in Bhitarkanika National Park, Odisha. The latest order reinforces Heritage River Journeys' long-term commitment to expanding its fleet and strengthening India's position as a destination for luxury river cruising.

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