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.


Mountain View Luxury at Fortune Resort Kalimpong

Mountain View Luxury at Fortune Resort Kalimpong

By Hariharan U

Published on August 12, 2025

Nestled high in the serene hills of Kalimpong, Fortune Resort by ITC Hotels offers guests a seamless blend of nature’s splendour and contemporary hospitality. With panoramic views stretching from snow-capped Himalayan peaks to lush valleys and sprawling tea gardens, the resort is a tranquil sanctuary for those seeking both rejuvenation and inspiration in the Eastern Himalayas.

The property’s thoughtfully designed rooms and suites strike a balance between elegance and warmth. Modern amenities meet classic charm, with large windows framing postcard-worthy landscapes that change with the mountain light from soft morning hues to dramatic sunsets.

Food is an experience in itself at Fortune Resort Kalimpong. The signature restaurants showcase a culinary journey that spans the globe from authentic Himalayan delicacies to refined international fare. Guests can enjoy their meals in stylish indoor dining spaces or opt for scenic outdoor settings where the crisp mountain air elevates every flavour.

Beyond the property, the resort offers an array of curated experiences. Nature lovers can venture into pine-scented forests on guided trails, while culture enthusiasts can immerse themselves in Kalimpong’s rich heritage through local tours and interactions. For those who simply wish to slow down, the peaceful surroundings offer a perfect backdrop for quiet contemplation.

Fortune Resort Kalimpong is equally adept at hosting intimate getaways and grand celebrations. Whether it’s a romantic escape, a family holiday, a wedding, or a corporate retreat, the property’s versatile spaces, personalised service, and breathtaking vistas create an unforgettable setting for every occasion.

With ITC Hotels legendary hospitality as its foundation, every stay here is infused with warmth, attention to detail, and a deep connection to place. At Fortune Resort Kalimpong, every sunrise feels like a painted masterpiece, and every moment lingers long after the journey home.


Lemon Tree Hotels Expands Footprint in Uttar Pradesh with New Chandausi Property

Lemon Tree Hotels Expands Footprint in Uttar Pradesh with New Chandausi Property

By Hariharan U

Published on August 10, 2025

Lemon Tree Hotels Limited has announced the opening of Lemon Tree Hotel, Chandausi, its eighth property in Uttar Pradesh. The 61-room property is set to launch in two phases, with Phase I debuting 31 well-appointed rooms, the Citrus Café multi-cuisine restaurant, and expansive banquet spaces.

Phase II will follow with the remaining 30 rooms and suites, along with Republic of Noodles, the brand’s signature Pan-Asian restaurant, a Pool Bar & Grill, fitness centre, swimming pool, and additional banquet facilities.

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Chandausi, located in the Sambhal district, is a quaint yet well-connected town whose name derives from “Chanda Si” meaning “moon-like”. Positioned strategically on the railway route linking Moradabad, Bareilly, and Delhi, the city offers strong connectivity while preserving its small-town charm.

Commenting on the launch, Vishvapreet Singh Cheema, President, Lemon Tree Hotels, said, We are pleased to announce the furthering of our footprint in Uttar Pradesh with the launch of our new property in Chandausi. This aligns with our vision of establishing a presence across India in cities across all tiers to become the most preferred hospitality chain in the country.”

With its blend of modern amenities and strategic location, Lemon Tree Hotel, Chandausi aims to cater to both business and leisure travellers seeking a fresh, vibrant stay experience in this historic town.


juSTa Hotels & Resorts to Launch Heritage-Inspired jüSTa Kashi Parampara in Varanasi by August 2025

juSTa Hotels & Resorts to Launch Heritage-Inspired jüSTa Kashi Parampara in Varanasi by August 2025

By Nishang Narayan

Published on August 9, 2025

jüSTa Hotels & Resorts, operated by Onora Hospitality Pvt. Ltd., is all set to make its Uttar Pradesh debut with the launch of jüSTa Kashi Parampara in August 2025. This will be the boutique brand’s 26th hotel in India and its first in the spiritual city of Varanasi.

Located just 800 meters from the iconic Assi Ghat, jüSTa Kashi Parampara occupies an 80-year-old ancestral home, transformed into a hotel for the first time. Offering a seamless blend of heritage and design, the property promises a deeply immersive stay experience in the cultural heart of India.

“This project is close to our hearts, not just because of its unique character and location, but because it continues our commitment to preserving and reviving heritage properties across India. We started this initiative with jüSTa Diwans Bungalow in Ahmedabad last year and this is the second heritage property we are converting into a jüSTa hotel,” said Ashish Vohra, Founder & CEO, jüSTa Hotels & Resorts.

The two-storied bungalow has been reimagined into 14 well-appointed rooms, including two elegant suites, all built around a central courtyard. Interiors in earthy tones create a serene contrast to Varanasi’s bustling atmosphere, making it an ideal retreat for wellness and spiritual travellers.

Heritage elements such as 100-year-old handcrafted wooden pillars, sandstone jali work from Jodhpur, and high ceilings enhance the haveli-like charm. The hotel will serve only vegetarian food, with guests enjoying local and international cuisine at the in-house multi-cuisine vegetarian restaurant.

With its understated exterior and tranquil interiors, jüSTa Kashi Parampara is poised to offer travellers an authentic yet luxurious Banaras experience when it opens in August 2025.

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