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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.”
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.
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By Manu Vardhan Kannan
Published on August 2, 2026
Lemon Tree Hotels Limited has announced the opening of Keys Prima by Lemon Tree Hotels, Kempty Road, Mussoorie, marking the group's second operational property in the popular hill station. With this launch, the company has expanded its operational portfolio in Uttarakhand to 10 hotels, while 11 additional properties remain under development across the state.
The hotel is managed by Carnation Hotels Private Limited, a wholly owned subsidiary of Lemon Tree Hotels Limited. Nestled along Kempty Road against the scenic backdrop of the Garhwal Himalayas, the property features 47 thoughtfully designed rooms and suites across Superior, Deluxe, Executive and Studio Suite categories. Designed to cater to both leisure and social travellers, the hotel offers an upper midscale hospitality experience with a range of modern amenities.
Guests can enjoy all-day dining at Keys Café or relax with beverages at Unlock Bar. The property also features a swimming pool, fitness centre, spa, and a dedicated kids' zone. For meetings, conferences, weddings and social gatherings, the hotel offers Grand Chamber, a well-equipped banquet and conference venue.
Commenting on the opening, Vishvapreet Singh Cheema, President, Lemon Tree Hotels Ltd., said, "Uttarakhand continues to be one of the most prominent tourism markets in the country, with sustained demand across leisure, pilgrimage and MICE travel through the year. Mussoorie, in particular, is one of those rare destinations whose appeal has endured across generations, retaining its place as one of India's most loved hill stations. The opening of our second hotel here allows us to be part of the destination's timeless appeal while responding to the growing demand for trusted hospitality. With its location on Kempty Road and a product designed to bring together leisure, wellness, dining and celebrations, the hotel is well placed to appeal to the many ways in which guests experience Mussoorie."
The hotel offers convenient connectivity for travellers, located approximately 71 km from Dehradun's Jolly Grant Airport, 44 km from Dehradun Railway Station, and around 10 km from Mussoorie Library Bus Station.
The opening further strengthens Lemon Tree Hotels' multi-brand presence in Uttarakhand, a key market for the company's growth strategy. With 10 operational hotels and 11 more in the pipeline, the hospitality group continues to expand across the state's major leisure and pilgrimage destinations, catering to the rising demand for quality accommodation in one of India's leading tourism markets.
International Airlines Group (IAG), the parent company of British Airways, Iberia, and Aer Lingus, has reported a 16% decline in second-quarter operating profit, citing higher fuel costs and weaker travel demand resulting from the ongoing Middle East conflict. The airline group also expects its overall capacity to remain flat for the rest of the year.
For the second quarter, IAG posted an operating profit before exceptional items of €1.41 billion, down from €1.68 billion during the same period last year. Despite the decline, the result slightly exceeded analysts' expectations of €1.37 billion.
The airline group said rising fuel prices and emissions-related expenses significantly impacted performance. During the second quarter, fuel costs and emissions charges increased by nearly 23% to €2.22 billion, affecting all of IAG's airlines from March onwards.
Although the company has slightly lowered its full-year fuel cost forecast to between €8.3 billion and €8.6 billion, compared with the approximately €9 billion projected in May, fuel remains one of its biggest financial challenges.
IAG stated that the prolonged conflict in the Middle East has weakened travel demand across several markets, adding pressure on airlines already facing elevated operating costs. The company had previously issued a profit and capacity warning in May as geopolitical uncertainty began affecting bookings.
The group's traditionally strong transatlantic business has also experienced pressure as changing travel patterns impact one of its most profitable markets.
Looking ahead, IAG said it is around 57% booked for the second half of the year, with booked revenue currently in line with the same period last year. The airline expects to offset approximately 60% of its higher fuel expenses through increased ticket prices and ongoing cost-efficiency initiatives.
The latest results reflect the broader challenges facing the aviation industry, with several European carriers reporting similar pressures from rising operating costs, geopolitical tensions, and softer travel demand in recent months.
Indian Hotels Company (IHCL), India's largest hospitality company, has announced the signing of a Gateway hotel in Tiruchirappalli (Trichy), Tamil Nadu. The project will be developed as a greenfield property, further strengthening IHCL's presence in one of South India's key business and spiritual destinations.
Commenting on the signing, Ms. Suma Venkatesh, Executive Vice President, Real Estate & Development, IHCL, said, “As travel demand continues to grow beyond metros and Tier 1 cities, destinations such as Trichy are emerging as significant markets, supported by a diverse mix of business, education and religious travel. With its central location and access to the region's most revered sites, this signing reinforces IHCL's commitment to expanding its footprint in high-growth Tier-2 cities while strengthening our spiritual circuit in South India.”
Strategically located on the Grand Southern Trunk Road, the 176-key Gateway Tiruchirappalli will offer views of the Kaveri River and the iconic Rockfort Temple on one side, while overlooking the Sri Ranganatha Swamy Temple at Srirangam and Jambukeswara Temple at Thiruvanaikaval on the other.
The hotel will feature an all-day dining restaurant, a specialty restaurant, and a bar. Guests will also have access to a swimming pool, gym, health club, and spa, providing a complete leisure experience.
Designed to serve both business and social events, the property will offer over 5,000 sq. ft. of banquet space, along with meeting rooms, pre-function areas, and one acre of outdoor lawns suitable for weddings, celebrations, conferences, and corporate gatherings.
Speaking about the partnership, Mr. A. Bagurudeen, Try Alam Hotels Pvt. Ltd., said, “We are pleased to partner with IHCL to bring the Gateway brand to Tiruchirappalli. The city continues to witness steady growth across industries, creating demand for hospitality infrastructure.”
Tiruchirappalli is one of Tamil Nadu's leading cultural and pilgrimage destinations, known for landmarks such as the Rockfort Temple, Sri Ranganathaswamy Temple, and Jambukeswarar Temple at Thiruvanaikaval. The city's growing business, education, and tourism sectors continue to drive demand for quality hospitality infrastructure.
With the addition of this property, IHCL's portfolio in Tamil Nadu will grow to 33 hotels, including 14 under development.
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