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.


Royal Orchid & Regenta Hotels Strengthens Rajasthan Presence with Jodhpur Signing

Royal Orchid & Regenta Hotels Strengthens Rajasthan Presence with Jodhpur Signing

By Hariharan U

Published on January 5, 2026

Royal Orchid & Regenta Hotels Ltd. (ROHL) has announced the signing of a new leisure-focused property in Jodhpur, Rajasthan, further expanding its presence in culturally significant destinations across the country. The upcoming Regenta Hotel, Jodhpur will be operated under a hotel management agreement, in line with the group’s asset-light growth strategy.

The 200-key all-suite hotel is strategically located near the Jodhpur High Court at Shatabdi Circle on New Pali Road, offering convenient access to key commercial hubs as well as the city’s prominent heritage attractions. Spread across 3,623 square metres, the property is being developed as a destination-led leisure hotel designed for longer stays and immersive experiences in the Blue City.

Regenta Hotel, Jodhpur will feature expansive conference and banquet facilities, a lobby bar, an all-day dining restaurant, and a rooftop pool bar. With its versatile event infrastructure and leisure-driven amenities, the hotel is positioned to cater to destination weddings, celebrations, premium social gatherings, and corporate events alongside leisure stays.

The project is being developed in partnership with Jodhana Real Home Private Limited & Shreeyukt. The hotel will offer spacious suite accommodations, curated dining experiences, comprehensive banqueting spaces, and wellness-oriented amenities, making it well-suited for leisure travellers and high-end social and destination events.

Banquet facilities will include a 6,000 square feet banquet hall connected to a 4,000 square feet open terrace, an additional 4,000 square feet banquet hall, and three breakaway rooms measuring approximately 2,500 square feet each.

Commenting on the signing, Chander K. Baljee, chairman & managing director, Royal Orchid & Regenta Hotels Ltd., said, “Jodhpur continues to be a key market for us, driven by strong tourism demand and an evolving hospitality landscape. The signing of Regenta Hotel, Jodhpur aligns seamlessly with our vision of expanding high-quality leisure offerings in heritage cities through an asset-light model. We are confident this property will further strengthen our portfolio in Rajasthan and deliver a distinctive hospitality experience.”

Speaking on the association, Suresh Bharti, owner, Jodhana Real Home Private Limited, said, “We are delighted to partner with Royal Orchid & Regenta Hotels for the Regenta Hotel project. Their proven operational expertise and strong brand credentials make them the ideal partner to introduce a premium all-suite leisure hotel in Jodhpur. Together, we aim to create a destination that blends comfort, elegance, and world-class service.”


Migsun Group Signs Clubhouse for 200-Key Hotel in Lucknow

Migsun Group Signs Clubhouse for 200-Key Hotel in Lucknow

By Hariharan U

Published on January 5, 2026

Migsun Group has signed hospitality brand Clubhouse to develop and operate a 200-key hotel at its mixed-use project, Migsun Janpath, in Lucknow. The agreement has been structured as a long-term 28-year revenue share lease, marking a strategic addition to the company’s growing portfolio of income-generating assets.

The hotel forms part of Migsun Janpath’s planned development mix, which brings together retail, commercial, and lifestyle components. With Lucknow witnessing steady growth in organised hospitality and mixed-use developments, the upcoming property is expected to cater to business travellers, social gatherings, and leisure demand.

Commenting on the development, Yash Miglani, Managing Director of Migsun Group, said, “The signing of Clubhouse is aligned with our strategy of adding stabilised, income-generating assets to our mixed-use developments. Lucknow has been witnessing consistent demand across business, social, and leisure travel, which creates a strong quality case for well-located hotels. The 28-year revenue share structure ensures long-term alignment between developer and operator while allowing the asset to respond to market changes over time. We believe this addition will strengthen the overall project ecosystem and contribute meaningfully to the city’s evolving hospitality landscape.”

The addition of Clubhouse is expected to enhance Migsun Janpath’s positioning as a destination that seamlessly integrates retail, leisure, and stay experiences, adding a strong hospitality dimension to the overall project.

Migsun Group has delivered over 40 projects across the NCR region and is recognised for its focus on quality, innovation, and timely delivery. With a robust pipeline of upcoming developments, the Group continues to expand its presence while strengthening its position in India’s real estate and mixed-use development space.


Suba Hotels Commences Operations of Click Collection Hotel in Gangtok

Suba Hotels Commences Operations of Click Collection Hotel in Gangtok

By Hariharan U

Published on December 31, 2025

Suba Hotels has officially commenced operations of Click Collection Hotel, Gangtok, marking its second landmark presence in the capital city of Sikkim. The new property strengthens the group’s growing footprint in the Northeast and reinforces its focus on delivering contemporary hospitality in emerging leisure destinations.

Strategically located at Bojoghari, Indra Bypass Road, near the helipad and within easy reach of popular attractions such as MG Marg and Tsomgo Lake, Click Collection Hotel Gangtok offers travellers a comfortable base to explore the city while enjoying scenic valley views. The hotel is designed to cater to both leisure and business travellers seeking modern comforts in a relaxed mountain setting.

The property features 42 thoughtfully designed rooms and suites, blending functional design with warm interiors suited for today’s urban traveller. Guests can expect well-appointed amenities, attentive service, and a stay experience aligned with Suba Hotels’ signature standards of efficiency and comfort.

With its convenient location, contemporary rooms and focus on guest-centric service, Click Collection Hotel Gangtok aims to become a preferred choice for visitors travelling to Sikkim for holidays, business trips or short city getaways. The opening also reflects Suba Hotels’ continued expansion strategy across key tourism-driven and emerging markets in India.

As travel demand to Northeast India continues to rise, the launch of Click Collection Hotel Gangtok positions Suba Hotels to tap into the region’s growing popularity while offering travellers a reliable and comfortable hospitality option in the heart of Gangtok.

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