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.


Eco Hotels Signs First Boutique Property in Udaipur

Eco Hotels Signs First Boutique Property in Udaipur

By Hariharan U

Published on February 3, 2026

Eco Hotels and Resorts Limited has announced the signing of its first boutique property in Udaipur, marking a key milestone in the company’s brand expansion strategy and its entry into India’s growing boutique hospitality segment.

Located in the city of Udaipur and set amid the Aravali mountain range, the upcoming property will feature 20 thoughtfully designed rooms. According to the company, the rooms will be crafted with artistic elements and attention to detail, offering guests a blend of comfort, elegance and a serene, immersive environment complemented by scenic mountain views.

A major highlight of the property will be GG’s, a pure vegetarian, double-decker rooftop restaurant. Designed with both open-to-sky and covered dining spaces, the restaurant will offer panoramic views of the surrounding landscape, positioning it as a distinctive culinary destination aligned with Eco Hotels’ focus on quality and innovation.

The Udaipur signing also marks the launch of Eco Hotels’ fourth brand, The Eco Boutique, following its existing brands -The Eco, Eco Xpress and Eco Value. The new boutique brand is aimed at travellers seeking premium, experience-driven stays in culturally rich and scenic leisure destinations.

Commenting on the development, Vinod Kumar Tripathi, Chairman, Eco Hotels and Resorts Limited, said, “With the Eco Boutique Udaipur, we aim to deliver a refined hospitality experience that reflects the cultural richness and natural beauty of the region. This expansion is part of our broader strategy to strengthen our footprint in high-growth markets while maintaining our commitment to sustainability, guest comfort, and operational excellence.”

Sharing a financial and growth perspective, Vikram Doshi, Director – Finance & CFO, Eco Hotels and Resorts Limited, added, “The signing of our first boutique property in Udaipur reflects our focused approach toward expanding into high-demand leisure markets with strong revenue potential. This property is expected to strengthen our portfolio by offering a differentiated guest experience while maintaining operational efficiency and financial discipline. We remain confident that such strategic expansions will contribute positively to the company’s long-term growth trajectory.”

The property is scheduled to go live in March 2026 and is expected to further strengthen Eco Hotels’ presence in India’s leisure hospitality landscape, while offering guests a distinctive blend of comfort, elegance and scenic charm.


The Leela Palace Jaipur Celebrates India’s Literary Spirit at Jaipur Literature Festival 2026

The Leela Palace Jaipur Celebrates India’s Literary Spirit at Jaipur Literature Festival 2026

By Manu Vardhan Kannan

Published on January 30, 2026

The Leela Palaces, Hotels and Resorts partnered with the Jaipur Literature Festival (JLF) 2026, as Jaipur once again emerged as a vibrant meeting point for literature, art, and culture. The festival, held from January 15–19, brought together leading Indian and global writers, thinkers, and cultural voices for five days of dialogue, debate, and celebration. Anchoring this collaboration was ‘A Literary Sojourn’, a thoughtfully curated festival stay that combined privileged access with The Leela’s signature hospitality.

During the five days of the festival, The Leela Palace Jaipur hosted the Author’s Lounge, designed as a calm and refined cultural retreat. The space became a hub for writers, thinkers, and creators to engage in meaningful conversations away from the bustle of the festival grounds. Guests experienced a blend of literary discussions, music showcases, and storytelling sessions, while a wellness corner by Aujasya Spa by The Leela offered moments of relaxation, balance, and mindfulness.

Sharing her experience, Ila Arun, celebrated Indian TV personality and Rajasthani folk-pop singer, said, “At the Jaipur Literature Festival, my most lovable stop was The Leela’s Author’s Lounge, so artistic, so slick, and bursting with positive energy. You walked in and your mood instantly lift. The food was delicious, but also so thoughtfully planned, healthy, well-selected, and never so heavy that it would slow you down. It’s the perfect pause before you step right back into the next session feeling happy. And that’s classic Leela, hospitality with heart. Warm, attentive staff, and a chef who takes personal interest, coming table to table to make everyone feel comfortable. You feel genuinely cared for, and you carry that warmth back into the festival with you.”

Commenting on the experience, Tripti Pandey, tourism expert and cultural writer, said, "As I walked into the Author's Lounge, it took me by complete surprise as it was so much more spacious, with the addition of a spa that elevates the entire experience. The Leela team truly echoes excellence in hospitality, and the flute performance added a special touch to the ambiance. The Writers Ball 2026 was absolutely lavish and grand, our international guests were completely overawed by the entire experience."

As part of ‘A Literary Sojourn’, guests were also invited to explore an elaborate culinary journey across The Leela Palace Jaipur’s dining destinations. The Aravalli Dining Room showcased Indian, Rajasthani, and Western cuisines in a global dining format. Modern Asian small plates at The Amber Terrace were paired with root-to-fruit inspired cocktails reflecting Rajasthan’s botanical heritage. The Leela’s signature seven-course fine dining experience celebrated royal Indian kitchens in an elegant, candlelit setting. Guests could also unwind at The Peacock Lounge with Mediterranean-inspired dishes and seasonal beverages, while the Jharokha Bar offered refined drinks and light bites in a heritage-inspired atmosphere.

The partnership reached its grand finale with the Writers’ Ball on January 19, hosted at The Leela Palace Jaipur. The evening brought together literary figures and cultural icons for conversations, live performances, and immersive experiences. A live performance by Kutle Khan added to the atmosphere, complemented by The Leela’s hallmark hospitality and curated culinary offerings.

Through its association with Jaipur Literature Festival 2026, The Leela Palace Jaipur reinforced its role as a custodian of India’s cultural and literary heritage, creating experiences that celebrated storytelling, creativity, and thoughtful engagement in a setting that felt both meaningful and memorable.


Hilton Bengaluru Launches ‘Republic Retreats’ for One-Night Getaways

Hilton Bengaluru Launches ‘Republic Retreats’ for One-Night Getaways

By Manu Vardhan Kannan

Published on January 24, 2026

Hilton and Hilton Garden Inn Bengaluru Embassy Manyata Business Park have launched Republic Retreats, an exclusive one-night stay package designed for urban travellers and staycation enthusiasts. Available for stays between 24 January and 1 February 2026, the offer combines flexibility, curated dining, and exceptional value.

Republic Retreats invite guests to unwind with thoughtful inclusions such as buffet breakfast, buffet lunch or dinner, and 24-hour check-in and check-out. Guests can also enjoy 50% off during Happy Hours at the bar (12 p.m. – 6 p.m., IMFL) and hotel credits on food & beverages, including alcohol, as well as laundry services (spa excluded).

At Hilton Garden Inn Bengaluru Embassy Manyata Business Park, the package includes dining at F5 and generous hotel credits, while Hilton Bengaluru Embassy Manyata Business Park offers dining at Neo Kitchen along with attractive hotel credits.

With flexible timings, enticing dining options, and lifestyle perks, Republic Retreats make it easy to enjoy a quick getaway, celebrate a special occasion, or simply take a relaxing break. Bookings are now open for stays between 24 January and 1 February 2026.

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