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.


Novotel Jodhpur ITI Circle Marks Three Years of Hospitality and Guest Experiences

Novotel Jodhpur ITI Circle Marks Three Years of Hospitality and Guest Experiences

By Manu Vardhan Kannan

Published on March 31, 2026

Novotel Jodhpur ITI Circle marked its third anniversary on 28th March, celebrating three years of hospitality, memorable guest experiences, and a growing presence in the city. Over this period, the hotel has welcomed guests from across India and abroad, hosted over 30 distinguished celebrities, and maintained a strong position among top properties on TripAdvisor since its opening.

While these milestones highlight its journey, the hotel places equal importance on the moments it has shared with its guests. Over the years, it has grown into more than just a place to stay, becoming a space where people come together for celebrations, conversations, and memorable experiences. The return of familiar faces and continued guest trust have played a key role in shaping its journey.

A key part of the hotel’s identity is its dining approach. Known for its 100% vegetarian, sattvic cuisine, the hotel focuses on meals that are prepared with care and authenticity, while also keeping well-being in mind. This thoughtful approach has helped create a strong connection with guests who value both taste and mindful dining.

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Speaking on the occasion, Ritesh Mudgal, General Manager, said:

"These three years have been incredibly special for us. Beyond numbers and milestones, it’s the relationships we’ve built and the memories we’ve been part of that truly define our journey. We are deeply grateful to our guests for their continued trust and support."

Looking ahead, Novotel Jodhpur ITI Circle remains focused on growing further while continuing to offer experiences that reflect warmth, comfort, and flavour.

Three years. Countless memories. Infinite flavours.


Grand Continent Hotels Enters Delhi NCR with Gurugram Launch

Grand Continent Hotels Enters Delhi NCR with Gurugram Launch

By Hariharan U

Published on March 31, 2026

Grand Continent Hotels Limited has marked its entry into the Delhi NCR region with the launch of a new property in Gurugram, signalling a significant step in its North India expansion strategy. The move builds on the brand’s strong presence in South India while tapping into one of the country’s most dynamic business hubs.

Located in Sector 45, Greenwood City, the property is positioned to cater to corporate travellers, long-stay guests, and domestic leisure segments. With close proximity to key business districts and connectivity points, the hotel is designed to offer a practical and comfortable stay aligned with evolving mid-market hospitality expectations.

Further strengthening its presence in the city, the company has also signed a new 56-key hotel near the Google office in Gurugram. This dual development underlines the brand’s intent to scale rapidly in high-demand micro-markets across NCR.

The launch comes as the company expands its footprint to 30 properties across 17+ cities, with over 1,800 keys. Its growth has been driven by a focus on high-demand urban locations, standardized service delivery, and efficient operational models that appeal to both business and leisure travellers.

Commenting on the expansion, Ramesh Siva said, “The launch in Gurugram marks an important step in our growth journey. Having established a strong foundation in South India, we are now focused on expanding across key North Indian markets including Delhi NCR, Ayodhya, Jaipur, Varanasi, Somnath and Rameswaram. Strengthening our presence in the city further, we have also signed a 56-key hotel near the Google office in Gurugram. Over the next two years, we plan to add 15 hotels across these key cities as we continue to build a scalable and sustainable hospitality network.”

The Gurugram hotel features 38 rooms, including Premium Rooms with balconies and Deluxe Rooms, designed with contemporary interiors and equipped with essential amenities such as high-speed Wi-Fi, smart TVs, minibar, and workspaces. The property also houses a multi-cuisine restaurant, fitness centre, banquet and conference spaces, catering to both business meetings and small-format events.

With rising demand for organised mid-market hospitality across NCR and emerging destinations, North India is expected to play a critical role in the company’s growth. Its expansion strategy will focus on asset-light models, strategic partnerships, and high-demand locations to drive scalability and operational efficiency.

The Gurugram launch not only marks a geographic milestone but also reinforces Grand Continent Hotels’ long-term vision of building a pan-India hospitality platform centred on consistency, accessibility, and value-driven offerings.


IHCL Signs Taj Safaris Lodge in Satpura, Expands Wildlife Portfolio

IHCL Signs Taj Safaris Lodge in Satpura, Expands Wildlife Portfolio

By Hariharan U

Published on March 30, 2026

Indian Hotels Company Limited (IHCL) has announced the signing of a new Taj Safaris property in Satpura, marking a strategic expansion in India’s wildlife and eco-tourism segment. This greenfield project further strengthens IHCL’s footprint in Madhya Pradesh, where it already operates lodges across key national parks.

Commenting on the development, Suma Venkatesh, Executive Vice PresidentReal Estate & Development, IHCL, said, “India offers a significant opportunity to expand the wildlife and eco-tourism segment. The signing of Taj Safaris, Satpura reflects this potential and strengthens our presence in Madhya Pradesh.”

Developed in partnership with Sarvapratham Hospitality Private Limited, the upcoming lodge will be located approximately two hours from Bhopal Airport. Spread across 30 acres, the 20-key property will offer an immersive nature-led experience, complete with an all-day dining restaurant and bar.

Set amidst dense forests and undulating terrain, the lodge is positioned to offer curated wildlife experiences led by trained naturalists. The region, part of Satpura National Park, is known for its rich biodiversity and frequent wildlife sightings, especially during the summer months.

The park is home to species such as the Bengal tiger, leopards, sloth bears, Indian bison, along with over 300 bird species and numerous reptiles, making it a key destination for wildlife enthusiasts.

Representing the owning company, Kunal Giani, Vishal Premchandani, and Kapil Premchandani said, “We are pleased to partner with IHCL to bring Taj Safaris to Satpura. This development aligns with our vision of celebrating the region’s unique ecological character.”

With this addition, IHCL will expand its Taj Safaris portfolio in Madhya Pradesh to five lodges, including one under development, reinforcing its leadership in India’s luxury wildlife hospitality space.

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