FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

By Nishang Narayan

Published on January 19, 2025

The Federation of Hotel & Restaurant Associations of India (FHRAI), one of the world’s largest hospitality associations, has outlined a series of reforms it hopes to see in the Union Budget 2025-26. Representing over 60,000 hotels and 500,000 restaurants nationwide, FHRAI emphasized that these changes are critical for bolstering investment, creating jobs, and driving the growth of India's hospitality and tourism sector—a significant contributor to the national economy.

Key Recommendations by FHRAI

  1. Infrastructure Status for Smaller Projects
    FHRAI proposes granting infrastructure status to hotel and convention center projects costing ₹10 crore or more. Currently, this status is limited to projects exceeding ₹200 crore for hotels and ₹300 crore for convention centers, along with a requirement for the city population to exceed one million. FHRAI highlights that these restrictions exclude smaller, tourism-rich towns, preventing their access to financing and infrastructure benefits.

    “India’s tourism sector has immense untapped potential in historically significant towns and emerging destinations,” said K Syama Raju, President of FHRAI. “Infrastructure status for smaller projects will unlock growth opportunities in these regions.”

  2. Simplified Licensing and Single-Window Clearance
    FHRAI calls for a single-window clearance system to streamline the complex and time-consuming licensing and approval processes. Simplified regulations would encourage investments and ease operations for hospitality businesses.

  3. GST Rationalization
    The association advocates for rationalizing GST rates to make India more competitive internationally. FHRAI recommends:

    • Delinking GST on restaurants from room tariffs.
    • Revising GST rates for restaurants, banquets, and events.
    • Revisiting GST’s "place of supply" rules to allow input tax credits for services sourced across states, thereby reducing operational costs.
  4. Excise and Liquor Licensing Reforms
    FHRAI emphasizes the need for simplified excise and liquor licensing processes. Drawing inspiration from the FSSAI registration system, the association suggests nominal fees and easier compliance to promote the growth of leisure and entertainment services.

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Addressing Industry Challenges

India’s hospitality sector, known for generating substantial employment and foreign exchange earnings, faces multiple challenges due to restrictive policies. FHRAI asserts that reforms in licensing, taxation, and infrastructure will enhance India’s competitiveness as a global tourism destination.

“Our hospitality and tourism sector is vital to economic growth, yet it operates under significant regulatory burdens,” Raju added. “Budget 2025-26 presents an opportunity for the government to align policies with industry needs, fostering sustainable growth and positioning India as a leader in global tourism.”

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Vision 2047: A $1 Trillion Tourism Economy

By addressing these critical reforms, FHRAI believes India can advance its vision of becoming a $1 trillion tourism economy by 2047. Simplifying regulations, fostering investments, and reducing operational barriers will create jobs, increase foreign exchange earnings, and drive the sector's long-term growth.

About FHRAI

Established in 1955, the Federation of Hotel & Restaurant Associations of India (FHRAI) is the apex body of the hospitality industry in India. Representing over 60,000 hotels and 500,000 restaurants, FHRAI serves as a voice for the sector, collaborating with government bodies and international organizations to support the growth of India’s hospitality and tourism industries.


Eight Continents Hotels & Resorts Expands UK Presence with The Royal Hotel Cookstown

Eight Continents Hotels & Resorts Expands UK Presence with The Royal Hotel Cookstown

By Hariharan U

Published on April 30, 2026

Eight Continents Hotels & Resorts has announced the addition of The Royal Hotel Cookstown to its international portfolio, marking a significant step in strengthening its presence across the United Kingdom.

The move reflects the group’s strategy of building a curated collection of distinctive hospitality destinations that combine design, cultural authenticity, and personalised guest experiences.

Under this partnership, the property will continue to be owned by the Thom family, while Eight Continents Hotels & Resorts will take over the day-to-day management. The collaboration is designed to merge the hotel’s established legacy with the group’s experience-led approach, ensuring a balance between operational efficiency and high-quality service delivery.

The group plans to focus on refining the hotel’s brand positioning across regional and international markets, while enhancing operational performance. Key initiatives will include strengthening service delivery through people-first training, implementing structured operational frameworks, and driving commercial outcomes through disciplined revenue strategies. A more cohesive, design-led identity across guest touchpoints is also part of the transformation plan.

Commenting on the expansion, Richa Adhia, Managing Director, said, “We are delighted to expand our presence in Northern Ireland with The Royal Hotel Cookstown. This is a natural step in strengthening our footprint in our home market while continuing to build a globally connected portfolio. Our focus will be on elevating operational performance and guest experience, while preserving the property’s identity and legacy.”

For guests, the transition is expected to be seamless, with existing service standards maintained while benefiting from enhanced operational systems and upgraded experiences.

With a growing portfolio that includes brands such as Treetop, Hanric, Stamps, Ocho Homes, and Signature Collection, Eight Continents continues to expand across key destinations. Its presence spans regions including Belfast, Guernsey, and Zanzibar, alongside a strong footprint in India across Kasauli, Varkala, Udaipur, Sariska, Jodhpur, and Pushkar.

Founded in 2020 by Haninder Sachdeva, the group has positioned itself as a design-led, experience-driven hospitality brand, focusing on boutique properties that blend local heritage with global standards.

This latest addition reinforces the group’s ambition to build a globally connected hospitality network while maintaining a strong emphasis on curated, meaningful travel experiences.


The St. Regis Goa Resort Wins Best Luxury Resort at FICCI Awards 2026

The St. Regis Goa Resort Wins Best Luxury Resort at FICCI Awards 2026

By Hariharan U

Published on April 30, 2026

The St. Regis Goa Resort has been awarded Best Luxury Resort at the FICCI Travel & Tourism Excellence Awards 2026, marking another milestone in its journey as one of India’s most distinguished luxury destinations.

Spread across 49 acres of lush greenery, lagoons, and scenic waterways, with direct access to a pristine South Goa beach, the resort continues to stand out for its seamless blend of natural beauty, refined design, and personalised service.

This recognition comes at a time when the resort has been actively enhancing its guest experience. A key highlight is the reimagined Presidential Villa, designed as a private, ultra-luxury retreat that combines contemporary elegance with Goa’s cultural influences. It reflects a growing focus on offering immersive, high-end stays for global travellers.

The resort has also elevated its suite offerings, bringing in a sense of residential comfort paired with signature St. Regis sophistication. Every detail is crafted to ensure intuitive service and a refined stay experience.

Dining continues to play a central role in the resort’s identity. From authentic Italian flavours at Oliveto to globally inspired cuisine at Miri, each restaurant is positioned as a standalone destination, adding depth to the overall guest journey.

Beyond accommodation and dining, the resort curates signature experiences that define its brand. The iconic St. Regis Evening Ritual, personalised butler service, wellness offerings, and family-focused activities all contribute to a well-rounded luxury experience.

Its unique combination of expansive landscapes, beach access, and evolving experiences ensures it remains distinct from conventional resort offerings. Whether it is a quiet lagoon view, a wellness escape, or a destination celebration, the property offers a rare sense of scale and exclusivity.

Speaking on the achievement, Arun Vishnu, General Manager, said, “We are honoured to receive the award for Best Luxury Resort at the FICCI Travel & Tourism Excellence Awards 2026. This recognition reflects not only the beauty of our destination, but the dedication of our team and our commitment to elevating the guest experience. We are proud to represent Goa on a national stage and grateful to our guests for their continued trust.”

This accolade further strengthens the resort’s position in India’s luxury hospitality landscape, where thoughtful innovation meets timeless elegance


Country Inn Hotels & Resorts Adds Six Properties in a Month

Country Inn Hotels & Resorts Adds Six Properties in a Month

By Hariharan U

Published on April 29, 2026

Country Inn Hotels & Resorts, the flagship brand of Espire Hospitality Limited, has marked a significant milestone with six hotel openings within a single month, strengthening its footprint across key travel destinations in India.

The latest additions include new properties in Goa, Katra, and Patna, following earlier launches in Rishikesh and Dehradun. With this, the brand continues to build a diverse, multi-format portfolio catering to leisure, pilgrimage, and business travellers.

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The 44-key Country Inn in Goa marks the brand’s entry into one of India’s most popular leisure markets. Located close to Calangute Beach, the hotel offers a relaxed coastal setting with an all-day dining restaurant, Ruhani, and a poolside bar, Liquid, alongside modern rooms and leisure facilities.image

In North India, the launch of Country Inn in Katra strengthens the brand’s presence in pilgrimage destinations. Positioned near the gateway to Vaishno Devi Temple, the 36-room hotel is designed to offer convenience and comfort for spiritual travellers, with easy access to key routes and attractions.

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Further expanding into urban markets, Country Inn Smart Stays in Patna introduces a new format tailored for city travellers. Located in a central commercial district, the 50-room property offers access to landmarks such as Mahavir Mandir, Golghar, and Bihar Museum, along with business-friendly amenities including banquet halls and meeting spaces.

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Commenting on the expansion, Akhil Arora said, “These openings across Goa, Katra, and Patna, following our recent launches in Uttarakhand, represent a thoughtful step in strengthening our presence across India. By tapping into diverse markets—from leisure and pilgrimage to urban centres, we are building a portfolio that aligns with evolving travel trends.”

With this rapid expansion, Country Inn Hotels & Resorts continues to focus on destination-led growth, combining accessibility, comfort, and brand-led hospitality across emerging and established markets.

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