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.


Sterling Bagh, Ranthambore Unveils Curated Two-Day Holi Wilderness Escape

Sterling Bagh, Ranthambore Unveils Curated Two-Day Holi Wilderness Escape

By Hariharan U

Published on March 1, 2026

Celebrating Holi against the serene backdrop of Rajasthan’s wilderness, Sterling Bagh, Ranthambore has introduced a specially curated one-night, two-day festive escape designed for families and leisure travellers seeking both cultural immersion and relaxation.

Set near the famed forests of Ranthambore, the resort’s Holi programme blends traditional rituals with laid-back indulgence. The celebrations commence with a ceremonial welcome, followed by Hi-Tea and cultural activities that reflect the region’s vibrant heritage. As evening unfolds, guests can enjoy live music alongside an elaborate buffet dinner, creating a convivial setting for shared moments.

On Holi day, the festivities take centre stage with an organic colours celebration complemented by traditional Thandai and Gujiya live counters. Dedicated play zones for children ensure a family-friendly atmosphere, while a specially curated live bar and music experience adds to the festive spirit. The afternoon continues with Hi-Tea before concluding with a grand buffet dinner, offering a full day of colour, cuisine and celebration.

The experience wraps up with a leisurely breakfast the following morning, allowing guests to unwind in nature before departure. 

About the Brand

Sterling Holiday Resorts Limited operates across 59 destinations in India with over 3,700 keys. The brand has a strong presence in leisure locations including Alleppey, Corbett, Darjeeling, Goa, Ooty, Manali, Ranthambore and Udaipur, among others. Sterling Holiday Resorts Limited is a wholly owned subsidiary of Thomas Cook (India) Limited and is part of Fairfax Financial Holdings Limited.

With this festive offering, Sterling Bagh, Ranthambore positions itself as an ideal Holi retreat for travellers looking to celebrate the festival of colours amid nature, comfort and curated hospitality.


Radisson Hotel Group Signs 175-Key Radisson Collection Hotel in Mysore

Radisson Hotel Group Signs 175-Key Radisson Collection Hotel in Mysore

By Hariharan U

Published on March 1, 2026

Radisson Hotel Group has announced the signing of Radisson Collection Hotel, Mysore, marking the debut of its luxury lifestyle brand in the City of Palaces and reinforcing its expansion strategy in South India. The development strengthens the Group’s footprint in Karnataka and aligns with its focus on entering culturally significant, high-potential destinations with strong long-term demand.

Strategically located at the junction of Mysore Ring Road and Bengaluru–Mysore Road, the hotel will benefit from strong visibility and seamless connectivity to key city corridors. Positioned close to major tourist attractions, the property is expected to draw robust leisure demand, particularly weekend travellers from Bengaluru, while also catering to corporate, MICE and social segments.

The 175-key hotel will feature elegantly designed rooms and suites, signature dining venues and versatile meeting and event spaces. Expansive indoor banqueting and outdoor venues are expected to position the hotel as a preferred destination for conferences, corporate offsites, luxury weddings and large-scale social celebrations. True to the Radisson Collection ethos, the design will combine contemporary refinement with Mysore’s cultural legacy, offering experiences rooted in local character and global luxury standards.

Commenting on the signing, Nikhil Sharma, Managing Director and Chief Operating Officer, South Asia, Radisson Hotel Group, said, “Mysore represents a compelling growth opportunity for us, combining strong leisure fundamentals with an established weddings market and increasing corporate activity yet remains underpenetrated in the luxury segment. The signing of Radisson Collection Hotel, Mysore, allows us to re-enter the city with a flagship luxury product aligned to evolving demand patterns. This development strengthens our South India portfolio and supports our broader strategy of deploying Radisson Collection in destinations that demonstrate long-term demand depth, strong rate potential, and relevance across leisure, MICE, and social segments.”

Adding to this, Davashish Srivastava, Senior Director – Development, South Asia, Radisson Hotel Group, stated, “This signing is a significant step in strengthening our luxury presence in South India and reflects our strategy to introduce Radisson Collection in culturally rich yet underpenetrated markets. Mysore’s heritage appeal, strong weekend demand, and large-scale social and MICE potential make it an ideal destination for a flagship Radisson Collection hotel. We look forward to developing a landmark property that combines the brand’s global standards with the city’s timeless cultural identity.”

Sharing the ownership perspective, KN Zubair Ahmed, Founder and Chairman of Zed Group, said, “Partnering with Radisson Hotel Group to bring Radisson Collection to Mysore is a defining moment for us and for the city’s luxury hospitality landscape. Mysore’s global recognition as a heritage destination, combined with its evolving demand for upscale experiences, makes it the ideal setting for a Radisson Collection hotel. Our vision is to create a landmark destination that celebrates the city’s royal legacy while offering contemporary luxury, world-class service, and exceptional spaces for weddings, events, and leisure travelers. We are confident this hotel will redefine luxury hospitality in Mysore and become a preferred address for discerning guests.”

With this signing, Radisson Hotel Group continues to expand its curated luxury portfolio in India, positioning Mysore as its next flagship destination in South India.


The Fern Hotels & Resorts Expands Rajasthan Portfolio with The Fern Nest Resort Jaipur

The Fern Hotels & Resorts Expands Rajasthan Portfolio with The Fern Nest Resort Jaipur

By Hariharan U

Published on February 28, 2026

The Fern Hotels & Resorts has announced the launch of The Fern Nest Resort Jaipur, Series by Marriott, further strengthening its footprint in Rajasthan. With this addition, the brand now operates five properties in Jaipur and a total of 17 hotels across the state, including those operational and opening shortly.

Strategically positioned with convenient access to major transport hubs, the new property is designed to serve business travellers, leisure guests, weddings and convention segments in one of India’s most culturally vibrant cities. Located approximately 30 km from Jaipur International Airport, 25 km from Jaipur Railway Station and 29 km from Jaipur ISBT, the hotel ensures smooth connectivity for domestic and international visitors.

The resort features 107 well-appointed rooms and suites across multiple categories, blending comfort, functionality and contemporary design. Dining offerings include Darpan, a multi-cuisine restaurant inspired by the architectural grandeur of Chand Baori, serving Indian, Asian and international fare in an elegant setting. Guests can also unwind at Zaza, a chic café and lounge offering gourmet teas, coffees and beverages alongside live kitchen experiences. Round-the-clock in-room dining further enhances guest convenience.

Commenting on the expansion, Suhail Kannampilly, Managing Director of The Fern Hotels & Resorts, said, “As India’s hospitality landscape continues to evolve, destinations such as Jaipur remain central to both domestic and international travel demand. Our focus is on creating hospitality experiences that combine efficient service, thoughtful amenities and strong location advantages to meet the expectations of modern travellers. This new property reflects our commitment to expanding in culturally significant markets while maintaining consistent quality and guest satisfaction across our portfolio.”

With its comprehensive facilities and strategic location, The Fern Nest Resort Jaipur is positioned as a well-connected and contemporary hospitality address in Rajasthan’s capital city.

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