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.


Courtyard by Marriott Madurai Marks Eight Years of Hospitality and Growth

Courtyard by Marriott Madurai Marks Eight Years of Hospitality and Growth

By Manu Vardhan Kannan

Published on August 25, 2026

Courtyard by Marriott Madurai is celebrating its eighth anniversary, marking eight years of hospitality, culinary experiences and strong connections with the city. Since opening in 2018, the hotel has grown alongside Madurai’s tourism, business and hospitality sectors.

The property has built a strong presence among Leisure Travellers, Temple Tourists, Corporate Guests, MICE groups and Wedding celebrations. Over the years, it has continued to adapt to changing guest expectations while focusing on personalized and experience-led hospitality.

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Mr. V. Vasudevan, Chairman, said, “Eight years in Madurai is a milestone built on trust, commitment and strong relationships. We are proud to have grown alongside the city and look forward to creating greater value for Madurai’s hospitality landscape in the years ahead.”

The hotel is also seeing strong business momentum in 2026. During the first half of the year, Courtyard by Marriott Madurai recorded 25%+ growth, with occupancy crossing 85%. Hotel revenue grew by 19.9%, while occupancy growth stood at 8.8%.

Mr. C. Muralikrishnan, Managing Director, said, “Our eight-year journey reflects our ability to evolve with Madurai and its changing hospitality landscape. The strong growth this year reinforces our confidence in the city’s potential and our vision for the future.”

Food and beverage continues to be an important part of the hotel’s offering, with Madurai Kitchen becoming a prominent dining destination for both hotel guests and local diners. Its buffet, food festivals, brunches and curated culinary experiences have added to Madurai’s growing premium dining culture. The hotel has also strengthened its presence in the weddings and MICE segment, having hosted 25+ medical conferences, including national and global associations.

Mr. V. Akshay Ram, Executive Director, said, “Hospitality is ultimately about creating experiences that guests remember. Over the past eight years, we have continually evolved our offerings while staying committed to personalized service and meaningful guest experiences.”

Guest loyalty remains an important part of the hotel’s journey, with repeat guests returning year after year. The property also recorded record guest satisfaction in the first half of 2026. Alongside technology-led convenience, the hotel continues to focus on the human connection that remains central to hospitality.

Sustainability has also become part of the property’s daily operations. Its glass-bottle water plant and energy-efficiency initiatives have helped bring annual electricity consumption down from 2,980,550 kWh to 2,908,447 kWh, saving 72,103 kWh despite an 8.8% increase in occupancy and 19.9% growth in hotel revenue. Engineering-led operational practices have also helped reduce HLP costs from 9.4% to 8.4%.

Mr. Mahesh Padala, General Manager, said, “Our eighth anniversary is a celebration of our guests and our associates who make every experience special. The loyalty of our guests and record satisfaction this year inspire us to raise the bar even further.”

As Courtyard by Marriott Madurai enters its ninth year, the hotel will continue to focus on guest experience, F&B innovation, weddings, MICE, technology and sustainability, while growing alongside Madurai and contributing to the city’s evolving hospitality landscape.


Taj Agra Invites Guests to Embrace the Monsoon with Special Staycation Offer

Taj Agra Invites Guests to Embrace the Monsoon with Special Staycation Offer

By Hariharan U

Published on August 23, 2026

Taj Agra is inviting guests to make the most of the monsoon season with a specially curated Monsoon Staycation, combining comfortable accommodation with dining and wellness benefits for a relaxed getaway in the historic city.

The staycation offer provides guests with savings across key aspects of their stay, including accommodation, food and beverages, and spa and salon services.

Guests can avail 25% savings on breakfast-inclusive stays, along with daily breakfast at the designated dining venue. The offer also includes 25% savings on food and beverages and 25% savings on spa therapies and salon services during the stay.

Speaking about the offer, Bikram Pradhan, Revenue Manager, Taj Agra, said, “The monsoon season offers a wonderful opportunity to slow down, reconnect and enjoy a more leisurely getaway. Through our Monsoon Staycation, we are delighted to welcome guests to Taj Agra for a relaxed and enriching experience, with thoughtfully curated dining and wellness benefits.”

Additional benefits under the offer include up to 8% NeuCoins on eligible bookings and spends, along with standard Wi-Fi throughout the stay.

Key Offer Details:

  • 25% savings on breakfast-inclusive stays
  • Daily breakfast at the designated dining venue
  • 25% savings on food and beverages
  • 25% savings on spa therapies and salon services
  • Up to 8% NeuCoins on bookings and eligible spends
  • Standard Wi-Fi during the stay

The Monsoon Staycation is available for bookings from 18 July to 23 August 2026, with stays valid from 18 July to 30 September 2026.

Located in Agra, Taj Agra offers guests a blend of contemporary hospitality and the cultural heritage of the destination, making it a setting for leisure escapes, celebrations and business stays.

Booking:

Guests can book the offer through Taj Hotels' official booking platform.


The Leela Ambience Gurugram Curates New Luxury Retreat Experience

The Leela Ambience Gurugram Curates New Luxury Retreat Experience

By Manu Vardhan Kannan

Published on August 22, 2026

The Leela Ambience Gurugram Hotel & Residences is inviting guests to slow down and enjoy a more relaxed city escape with its new Luxury Retreat Reserve, an experience created around leisurely mornings, unhurried afternoons and memorable evenings.

Set within the luxury urban sanctuary, the stay offers rooms overlooking a sprawling 1,000-acre forest, giving guests a peaceful setting while still being in the heart of the city.

The experience begins with breakfast at Spectra, the award-winning all-day dining restaurant, followed by a three-course lunch at Diya. Known for its contemporary take on Indian cuisine, Diya brings together traditional flavours and a refined dining setting.

Guests can then spend a relaxed afternoon at The Courtyard Garden, where afternoon tea is served among lush greenery and private cabanas. The setting offers a quiet break from the pace of everyday city life.

For guests who prefer to spend their leisure time outdoors, the experience also includes access to activities at The Leela Ambience Golf Greens and The Leela Cycling Trail, available at an additional charge. The 9-hole golf course offers views of the surrounding landscape, while the cycling trail features curated routes for guests looking to explore the outdoors. After an active afternoon, guests can unwind at the spa with an exclusive credit, which can be used towards personalised therapies.

As the day comes to an end, Zanotta offers an Italian dining experience with panoramic Pearl and Ruby views overlooking Gurugram’s skyline. The restaurant combines Italian cuisine, elegant interiors and a curated beverage selection for a refined evening. The experience also includes round-trip transfers within a 10-kilometre radius and a bottle of house wine, adding to the ease of the stay from arrival to departure.

Available for bookings from 1 September 2026, Luxury Retreat Reserve is designed for guests looking to step away from busy schedules and simply enjoy a slower pace, good food, outdoor experiences and the comfort of having nowhere else to be.

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