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.


Enrise by Sayaji, Latur Opens in MIDC Hub, Strengthening Marathwada’s Hospitality Infrastructure

Enrise by Sayaji, Latur Opens in MIDC Hub, Strengthening Marathwada’s Hospitality Infrastructure

By Hariharan U

Published on February 17, 2026

Enrise by Sayaji, Latur has officially opened in the city’s Old MIDC Area, marking a strategic addition to the hospitality infrastructure of Maharashtra’s Marathwada region. The 30-room property is designed to cater to Latur’s rapidly expanding industrial and business corridor, reinforcing the city’s position as one of India’s fast-growing tier-2 markets.

Latur, home to over 24 lakh residents (Census 2011), is recognised as a major soyabean trading centre and for its 11 cooperative sugar factories, earning it the title “Sugar Belt of Maharashtra.” The region’s strong agro-industrial base continues to generate sustained demand for quality business hospitality.

The hotel offers 30 rooms across three categories - 18 Deluxe Rooms, 9 Executive Rooms and 3 Premium Executive Rooms, tailored for business and leisure travellers. Expansive MICE and event facilities include four banquet venues: Jewel, accommodating up to 700 guests in a theatre-style setup; Solitaire for mid-sized gatherings; Crystal for corporate meetings; and Connect, an intimate boardroom space.

Dining options include two multi-cuisine restaurants, Momentt and Horizon, serving resident guests, business travellers and local diners.

Ajay Kanojia, Associate General Manager, Sayaji Hotels Ltd, stated that Latur aligns with the brand’s strategic expansion into high-potential growth markets, bringing its signature “Yours Truly” service ethos to the region. Mayur Garje, Managing Director, Garje Unit, highlighted the partnership’s role in elevating hospitality standards in the district.

Located 3 km from Latur Railway Station and 120 km from Solapur Airport, the property offers convenient connectivity for corporate travellers. The opening reflects Sayaji Hotels’ continued focus on expanding across emerging business destinations in India


Royal Orchid Hotels Launches Regenta Ranjit Avenue in Amritsar

Royal Orchid Hotels Launches Regenta Ranjit Avenue in Amritsar

By Hariharan U

Published on February 15, 2026

Royal Orchid Hotels Ltd. (ROHL) has announced the launch of its newest property, Regenta Ranjit Avenue, Amritsar, further strengthening its footprint in Punjab. With this opening, the group now operates five properties in the city, reinforcing its focus on high-growth urban and religious tourism destinations.

Strategically located at SCO 47-50, Ranjit Avenue, the hotel offers convenient access to Amritsar’s key landmarks. It is situated just 7 km (around 10 minutes) from the iconic Golden Temple and Jallianwala Bagh. The property is also 15 km from Shri Guru Ram Dass Ji International Airport and 5.5 km from the Amritsar Railway Station, making it accessible for both domestic and international travellers.

The hotel features 37 thoughtfully designed rooms that blend contemporary comfort with regal elegance, offering guests a serene stay experience.

Dining at the property includes three distinct venues. Pinxx Kitchen & Lounge serves as the signature all-day dining restaurant, where global flavours meet the authentic tastes of Amritsar. Mix Bar offers a chic setting with a curated selection of expertly crafted beverages, while Kitty Lounge provides an exclusive space for private gatherings and intimate social events.

For meetings and celebrations, the hotel boasts expansive banquet venues with regal detailing. A highlight is “Celebration – The Party Hall,” a 4,500 square feet space with 16-foot ceilings, ideal for grand events and corporate functions. Guests can also unwind at the rooftop swimming pool, adding a leisure edge to the property’s offerings.

Commenting on the launch, Chander K. Baljee, Chairman & Managing Director, Royal Orchid Hotels Ltd., said, “The opening of Regenta Ranjit Avenue marks a significant milestone in our strategy to strengthen our presence in India’s most iconic cultural and spiritual hubs. As our fifth property in Amritsar, this launch reinforces our commitment to the region and our ‘Vision 2030’ expansion roadmap. We aim to provide a sanctuary of 'Regal Hospitality and Eternal Serenity' that reflects the city's rich heritage while offering the modern, high-quality service our guests expect.”

With this addition, Royal Orchid Hotels continues to deepen its presence in key Indian markets, aligning growth with destinations that attract both leisure and pilgrimage travellers.


Vikram Kamats Hospitality and HPCL Join Hands to Build Pan-India Food and Fuel Ecosystem

Vikram Kamats Hospitality and HPCL Join Hands to Build Pan-India Food and Fuel Ecosystem

By Hariharan U

Published on February 15, 2026

In a move set to reshape India’s highway and city travel experience, Vikram Kamats Hospitality Limited has announced a strategic partnership with Hindustan Petroleum Corporation Limited (HPCL) to build an integrated food and fuel ecosystem across the country.

Under the agreement, Vikram Kamats Hospitality Limited will establish South Indian restaurants and takeaway outlets at select HPCL fuel stations. The initiative aims to provide travellers with access to clean, hygienic, and familiar food options while on the move.

The collaboration seeks to transform fuel stations into dependable rest and refresh points, where customers can refuel their vehicles, access well-maintained washrooms, and enjoy quality meals, all at a single stop. The rollout will begin with Maharashtra as the pilot state, followed by a phased expansion across highways, cities, and urban hubs nationwide.

The partnership was formally signed by Murali Krishna V. Vadrevu, Executive Director at HPCL, and Pankaj Deokar, Vice President – Operations at Vikram Kamats Hospitality Limited, underlining the shared intent to scale the model in a structured and sustainable manner.

With HPCL’s extensive network of fuel stations across India, the initiative is positioned to cater to a broad segment of highway travellers, daily commuters, families, fleet operators, and business travellers. Kamats restaurants will introduce travel-friendly food solutions, including specialised packaging for quick, hygienic grab-and-go dining, tailored to the needs of Indian road travel.

Commenting on the development, Vikram Kamat, Founder of Vikram Kamats Hospitality Limited, said, “For decades, Indian travellers have associated fuel stops with necessity alongside comfort. This partnership allows us to change that narrative. Through coming together with HPCL, we are creating spaces where people can pause, eat well, and travel better. Our focus has always been on food that is honest, hygienic, and familiar, and this collaboration allows us to take that experience to where India travels every day, on its highways and city roads.”

The companies have emphasised a step-by-step, scalable growth model, prioritising consistent food quality, service standards, and operational discipline over rapid expansion. The focus remains on building a dependable, long-term customer experience.

With this partnership, Vikram Kamats Hospitality Limited and HPCL aim to set a new benchmark for India’s travel infrastructure, turning fuel stations into well-rounded destinations that serve the everyday needs of modern Indian travellers.

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