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.


Clarion Hotel Khayal Kochi Wins Indian Hotel of the Year Award

Clarion Hotel Khayal Kochi Wins Indian Hotel of the Year Award

By Hariharan U

Published on May 14, 2026

Clarion Hotel Khayal Kochi has earned a major international recognition after being awarded the Indian Hotel of the Year by Choice Hotels. The honour was presented during an event held in Las Vegas on 6 May 2026.

The achievement marks an important milestone for the property as well as the SUBA Group of Hotels, under which the hotel operates. The recognition highlights the hotel’s consistent focus on guest experience, hospitality standards, and operational excellence.

Presented under the “Best of Choice” platform, the award celebrates standout properties within the Choice Hotels network that have demonstrated exceptional performance and service quality.

The recognition places Clarion Hotel Khayal Kochi among the top-performing hospitality destinations representing India on a global stage, further strengthening its presence within the international hospitality industry.


Eight Continents Hotels & Resorts Expands Himachal Presence with RoyalPine Kasauli Launch

Eight Continents Hotels & Resorts Expands Himachal Presence with RoyalPine Kasauli Launch

By Hariharan U

Published on May 14, 2026

Eight Continents Hotels & Resorts has announced the launch of Treetop by Eight Continents - RoyalPine Kasauli, marking a significant expansion of the group’s presence in Himachal Pradesh and strengthening its portfolio of design-led experiential hospitality destinations in India.

The UK-based luxury hospitality and hotel management group, known for its focus on emotique hotels, continues its strategy of developing immersive, culturally rooted, and experience-driven stays across high-potential leisure markets.

Nestled amidst the hills of Kasauli, the 44-key property has been designed to offer uninterrupted valley views and sunset-facing experiences, with architecture that blends contemporary aesthetics with natural materials. Built along a natural gradient, every room has been positioned to maximise scenic vistas and create a strong connection with the surrounding landscape.

A key design highlight of the property is the use of knotless pine wood sourced from Finland, bringing warmth and a nature-inspired character to the overall guest experience.

The property features a range of lifestyle and wellness offerings including 8 Cafe and a restaurant and microbrewery concept, along with a sunset deck, dedicated gathering spaces, a spa, steam and sauna facilities, an infinity pool, and a 10-seater jacuzzi. The development reflects the growing consumer demand for boutique hospitality experiences that combine wellness, design, and destination-driven travel.

Speaking on the launch, Richa Adhia, Managing Director of Eight Continents Hotels & Resorts, said the addition of RoyalPine Kasauli aligns with the group’s broader strategy of building experience-led destinations in key leisure markets. She noted that Kasauli’s natural beauty and heritage charm make it an ideal setting for immersive hospitality experiences tailored to modern travellers seeking meaningful and design-focused stays.

Founded in 2020 by Haninder Sachdeva, Eight Continents Hotels & Resorts operates across India, the UK, and East Africa. Its hospitality portfolio includes brands such as Ocho Homes, Hanric, Treetop, and Stamps, all centred around boutique luxury, local storytelling, and experiential travel.

The launch of RoyalPine Kasauli comes at a time when India’s boutique hospitality segment continues to witness strong momentum, particularly in leisure and mountain destinations where travellers are increasingly prioritising personalised experiences, wellness, and destination authenticity over traditional hotel formats.

For more information, visit Eight Continents Hotels & Resorts


The Westin Pushkar Resort & Spa Redefines Luxury Destination Weddings in Rajasthan

The Westin Pushkar Resort & Spa Redefines Luxury Destination Weddings in Rajasthan

By Manu Vardhan Kannan

Published on May 12, 2026

The Westin Pushkar Resort & Spa is emerging as a sought-after destination for luxury weddings in Rajasthan, bringing together scenic landscapes, elegant venues, curated experiences, and premium hospitality under one roof.

Located amidst the peaceful surroundings of Pushkar and close to the town’s spiritual landmarks, the resort offers panoramic 360-degree views of the Aravalli Hills along with stunning sunset backdrops, creating a memorable setting for wedding celebrations.

The property features four outdoor and two indoor venues designed to host multi-day wedding festivities with ease. One of the standout spaces at the resort is its dome-shaped venue inspired by the Shiv Ling, offering a unique setting for sacred pheras. The expansive lawns and smooth baraat processions within the property further add to the grand wedding experience while ensuring convenience for guests.

The resort houses more than 98 rooms and private villas, including pool villas and plunge pool villas, making it ideal for exclusive wedding buyouts. The spacious accommodation setup allows families and guests to celebrate together in privacy and comfort throughout the festivities.

Adding to the experience are the resort’s wellness and leisure offerings, including its premium spa, multiple swimming pools, and the Westin WORKOUT Fitness Studio. Guests can also enjoy a range of indoor and outdoor recreational activities designed for all age groups.

On the culinary front, the resort offers diverse dining experiences ranging from global cuisine at Seasonal Tastes to rooftop dining with panoramic views at Panorama. The hotel also provides customised wedding menus curated to match the style and preferences of each celebration.

Speaking about the wedding experience at the resort, Vijay Chandran, General Manager, said, “Weddings today are about creating immersive, meaningful experiences, and at The Westin Pushkar Resort & Spa, we bring together nature, luxury, and thoughtful service to make every celebration truly personal and memorable. Our aim is to offer couples and their families a seamless, all-in-one destination where every detail is taken care of.”

Combining luxury accommodation, elegant venues, wellness experiences, and personalised hospitality, The Westin Pushkar Resort & Spa continues to position itself as a refined destination for unforgettable weddings in Rajasthan.

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