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.


Rubystone Hospitality Launches Premium Hotel in Vrindavan, Strengthening Its Spiritual Circuit

Rubystone Hospitality Launches Premium Hotel in Vrindavan, Strengthening Its Spiritual Circuit

By Nishang Narayan

Published on July 3, 2025

Rubystone Hospitality has announced the opening of its latest property in Vrindavan, marking the group’s 12th hotel and furthering its presence in India’s spiritual and cultural tourism circuit. Located conveniently close to the famed Prem Mandir, Banke Bihari Temple, ISKCON Temple, Nidhivan, and the tranquil Yamuna Ghats, the hotel is perfectly positioned for devotees and tourists alike.

The new property features comfortable, well-furnished, and affordable rooms, a multi-cuisine restaurant serving a wide variety of dishes, and a charming terrace café offering stunning views of Vrindavan. Designed with a focus on nature and calm surroundings, the hotel provides a serene retreat, whether for spiritual seekers or travellers simply looking to unwind.

Speaking on the launch, Mr. Sandeep Singh, founder of Rubystone Hospitality, shared, “Vrindavan occupies a unique position in the hearts of millions. With this hotel, we aim to offer tourists a stay that is warm, clean, and full of peace. We have tried to bring together modern hospitality with the sanctity of this lovely city.”

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He further noted that the hotel is thoughtfully designed to cater to today’s travellers — individual pilgrims, families on vacation, and couples seeking a peaceful getaway. “The goal is to provide simple comforts with caring service, so guests can be free to pursue their mission — to pray, rest, or explore,” he added.

This new opening is part of Rubystone’s broader strategy to expand into spiritual and cultural destinations across India. With several development projects already underway, the group plans to announce additional openings in other holy cities over the coming months.

The hotel is now open to guests, with bookings available across all major travel platforms.


IHCL to Debut Ginger Hotel in Kanpur with 100 Keys

IHCL to Debut Ginger Hotel in Kanpur with 100 Keys

By Nishang Narayan

Published on July 2, 2025

The Indian Hotels Company (IHCL) has announced the signing of a new Ginger hotel in Kanpur, Uttar Pradesh, reinforcing its strategy to expand in India’s growing commercial centres. This greenfield project will be developed in collaboration with JK Urbanscapes Developers Limited, marking a continued partnership between the two groups.

Strategically located on Kalpi Road, near the Kamala Cricket Club, the 100-key Ginger Kanpur promises excellent connectivity to key business and leisure districts, making it well-suited for both corporate travellers and tourists visiting the city.

"Kanpur is a prominent manufacturing and commercial hub in Uttar Pradesh, making it an ideal location for Ginger’s offering. This signing is part of our strategy to build Ginger’s presence in such emerging cities," said Deepika Rao, Executive Vice President, New Businesses and Hotel Openings, IHCL. "We are delighted to extend our partnership with JK Urbanscapes Developers Limited."

The hotel will feature Ginger’s signature Qmin, a vibrant bar, meeting facilities, and a fitness centre — offering a seamless blend of work and leisure for its guests.

Maneesh Mansingka, CEO of JK Urbanscapes Developers Limited, added, "We are happy to continue our partnership with IHCL. Our projects with the company will contribute to Kanpur’s hospitality landscape."

With this signing, IHCL now has 34 hotels across Uttar Pradesh, including 21 under various stages of development, underscoring its robust commitment to the state’s hospitality growth.

JK Urbanscapes Developers Limited is part of the historic JK Singhania family business, whose legacy spans over 140 years with interests in sectors like cement, paper, tyres, defence, chemicals, healthcare, education, retail, and IT. The group’s real estate arm, originally incorporated as JK Cotton Ltd. in 1924, continues to play a key role in shaping urban infrastructure.

The new Ginger hotel is set to contribute significantly to Kanpur’s evolving hospitality landscape, catering to the dynamic needs of the city’s growing commercial and leisure segments.


Radisson Hotel Group Debuts Radisson Individuals Property Near Statue of Unity

Radisson Hotel Group Debuts Radisson Individuals Property Near Statue of Unity

By Nishang Narayan

Published on July 2, 2025

Radisson Hotel Group (RHG) has expanded its presence in Gujarat with the opening of D Square Statue of Unity Kevadia, a member of Radisson Individuals, strategically situated in Ekta Nagar. Nestled in the picturesque Narmada district, this hotel blends local charm with contemporary hospitality, serving as a gateway to one of India’s most iconic tourist destinations.

Located close to the Statue of Unity, the world’s tallest statue, the hotel also offers convenient access to attractions like Ekta Mall, Jungle Safari, Children Nutrition Park, and the Narmada riverfront. Its proximity to Ekta Nagar Railway Station enhances accessibility for both domestic and international travellers. Select rooms even feature panoramic views of the Statue of Unity, the lush valley, and the upcoming Tribal Museum, making it an exceptional base to explore the region.

"With the opening of D Square Statue of Unity Kevadia, we further strengthen our footprint in Gujarat, one of India’s fastest-growing tourism corridors," said Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group. "We remain aligned with the government’s vision of transforming Ekta Nagar into a model tourism and smart city destination. Our hotel stands as a testament to high-quality hospitality that complements the area’s cultural and sustainable growth."

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The hotel houses 91 tastefully designed rooms, blending warm aesthetics with modern amenities to create a comfortable retreat. Guests can indulge in flavourful vegetarian fare at Sankalp All Day Dining Restaurant, known for its signature service and refined dishes. For celebrations and business gatherings, the hotel offers versatile event spaces — the Silver Pavilion, perfect for weddings and conferences, and Sapphire, suited for intimate meetings or private events.

Shivalik Goenka, Co-owner of D Square Statue of Unity Kevadia, noted, "The hotel is a tribute to Gujarat’s spirit — rooted in culture, driven by progress. We aim to deliver experiences that are both meaningful and memorable."

Adding to this, Fakruddin Khan, General Manager, shared, "Our focus is on offering a warm, welcoming experience that beautifully marries comfort, service, and the natural splendour of Ekta Nagar. We’re excited to host guests from across India and beyond."

With this opening, Radisson Hotel Group continues to invest in India’s emerging leisure destinations, reinforcing its commitment to offer high-quality stays that celebrate local heritage and drive sustainable tourism.

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