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.


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.


LIVAA Hotels & Resorts Expands in Uttarakhand with Ayali Riverside Resort, Rishikesh

LIVAA Hotels & Resorts Expands in Uttarakhand with Ayali Riverside Resort, Rishikesh

By Hariharan U

Published on February 27, 2026

ALIVAA Hotels & Resorts has strengthened its presence in Uttarakhand through a strategic tie-up with Ayali Riverside Resort, marking its fifth property in the state. The move expands the group’s leisure portfolio in Rishikesh, widely regarded as India’s spiritual and adventure capital.

Set along the Huvel River, a tributary of the Ganges River, the resort features independent luxury cottages designed for travellers seeking privacy and tranquillity. Surrounded by the Himalayan foothills, the property caters to guests drawn to Rishikesh’s blend of spiritual heritage, yoga culture and outdoor adventure. Its proximity to landmarks such as Laxman Jhula and Neelkanth Mahadev Temple enhances its appeal among both domestic and international visitors.

The partnership aligns with rising travel demand in Uttarakhand, where Rishikesh has evolved beyond a pilgrimage centre into a hub for wellness tourism, adventure sports and extended “work-from-mountain” stays. With existing properties in Haridwar, Mussoorie and Lansdowne, and an upcoming project in Jim Corbett, ALIVAA continues to scale its footprint across key leisure destinations.

Akash Bhatia, Chief Executive Officer (M&F) of ALIVAA Hotels & Resorts, said, “The addition of Ayali Riverside Resort to our portfolio is a calculated move to capture the booming demand for experience-led stays in Uttarakhand. Marking our fifth property in the state, this expansion highlights our deep commitment to the region. By integrating Ayali’s stunning riverside location with ALIVAA’s commercial engine, this cooperation is set to deliver superior value to both our guests and our partners.”

Vikramjit Singh, Founder and Chairman of ALIVAA Hotels & Resorts, added, “Our vision for ALIVAA has always been to bridge the gap between asset potential and professional management. This joint undertaking reinforces our commitment to building an ecosystem that is ‘unmistakably Indian at heart’ yet global in its standards.”

Sandeep Kumar, Founder of Ayali Hotels & Resorts, noted that the alliance will allow the property to leverage ALIVAA’s marketing and sales expertise while maintaining its personalised guest experience.

With a growing pipeline and focus on midscale and upper-midscale segments, ALIVAA’s latest expansion underscores its ambition to emerge as a leading hospitality operator in high-growth leisure markets.


CheckIn Partners with MAP to Bring Art-Led Experiences to SUNDAY Hotels

CheckIn Partners with MAP to Bring Art-Led Experiences to SUNDAY Hotels

By Hariharan U

Published on February 25, 2026

In a move that blends hospitality with heritage, CheckIn has partnered with Museum of Art & Photography (MAP), Bengaluru, to introduce curated art experiences across select SUNDAY Hotels. The initiative aims to transform hotel spaces into immersive cultural environments where Indian art and storytelling become an integral part of the guest journey.

Launched as a pilot across three properties, Sunday Hotel, Zirakpur; Sunday Hotel & Residency M3M, Gurugram; and Sunday Hotel & Resort, Manesar, the collaboration marks one of the first structured efforts in India to embed museum-curated art within hospitality spaces at scale. Rooted in the shared belief that art should be part of everyday life, the partnership reimagines hotels not merely as places to stay, but as living galleries reflecting India’s artistic depth.

The inaugural collection features curated reprints spanning indigenous art practices, modern and contemporary works, and elements of popular culture. Gond paintings by Jangarh Singh Shyam offer insights into indigenous storytelling traditions, while Madan Meena’s Baramasa series draws from a distinctive genre of Indian miniature painting depicting the rhythm of seasons and their emotional resonance. Textile Labels from the early 20th century highlight the influence of chromolithography on art and design during that era.

Speaking on the partnership, Varun Jain, Chief Operating OfficerAsia, PRISM, noted that art has the power to deepen connections to culture and shared narratives. Abhishek Poddar, Founder of MAP, added that moving art beyond museum walls into everyday spaces encourages curiosity and fosters meaningful engagement with South Asian visual heritage.

The collaboration reflects evolving travel preferences, where guests increasingly seek culturally immersive and meaningful stays. By integrating curated art into its properties, CheckIn positions SUNDAY Hotels as spaces that celebrate regional narratives and artistic traditions while offering a contemporary hospitality experience.

With plans to expand the programme across additional SUNDAY Hotels, CheckIn aims to create a distributed art experience across India, one that brings cultural memory and creative expression closer to travellers nationwide.

PRISM, the parent company of OYO, operates across more than 35 countries, serving over 100 million customers globally through diverse hospitality and urban living solutions. Meanwhile, MAP Bengaluru, housed in a purpose-built 44,000 square foot space on Kasturba Road, continues its mission to preserve and promote South Asian visual art while cultivating a stronger museum-going culture in India.

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