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.


InterContinental Chennai Mahabalipuram Resort Unveils a New Chapter of Luxury by the Sea

InterContinental Chennai Mahabalipuram Resort Unveils a New Chapter of Luxury by the Sea

By Manu Vardhan Kannan

Published on June 2, 2026

InterContinental Chennai Mahabalipuram Resort, part of IHG Hotels & Resorts’ luxury and lifestyle portfolio, has unveiled the final phase of its extensive transformation, introducing a refreshed beachfront experience that combines contemporary luxury with the cultural richness of Mahabalipuram.

Spread across 15 acres along the scenic East Coast Road, the reimagined resort features a range of new offerings including an ocean-facing ballroom, expansive beach lawns, luxury suites with plunge pools, new restaurants and bars, a sports pavilion, meditation gardens, and scenic walking trails.

Commenting on the milestone, Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, said, “The reopening of InterContinental Chennai Mahabalipuram Resort marks an important milestone for our luxury portfolio in India. This multi-million-dollar transformation reflects our commitment to delivering destination-led, experience-rich stays that combine world-class hospitality with a strong sense of place. We are excited to welcome guests back to a reimagined resort that sets a new benchmark for mindful luxury on the Coromandel Coast.”

Inspired by the iconic Shore Temple and the heritage of Mahabalipuram, the resort blends local influences with contemporary design. Its 110 guestrooms and suites have been redesigned to offer elevated beachfront living, featuring spacious layouts, premium amenities, standalone bathtubs, rain showers, and views of the Bay of Bengal, landscaped gardens, and pool areas.

Among the standout accommodations are the Grand Presidential Suite, which offers expansive ocean views, a jacuzzi, and a steam room; the Presidential Suite, featuring a private pool and spa room overlooking the sea; and the Rathi Suite, complete with a plunge pool, steam room, and serene garden views.

Reflecting on the transformation, Anand Nair, General Manager, InterContinental Chennai Mahabalipuram Resort, said, “This relaunch marks a proud milestone for us, unveiling a truly transformed resort. Envisioned as a coastal icon reimagined, it brings together the richness of South Indian culture with modern luxury. Every space tells a story and each experience is thoughtfully curated to offer guests a more personal and elevated stay. Our ambition is to position the resort not merely as a place to stay, but as a destination in its own right.”

The resort has also strengthened its position as a destination for weddings, celebrations, and large-scale events. The newly introduced Vaibhava Ballroom spans over 12,000 sq. ft. and offers sea-facing views, while the adjoining Vaibhava and Beach Lawns cover over 70,000 sq. ft. Together, the venues can comfortably host more than 5,000 guests, making the property one of the region’s prominent event destinations.

Dining experiences have also been expanded with a refreshed collection of restaurants and lounges. The Melting Pot offers Indian, Western, and Pan-Asian cuisine through interactive live kitchens, while KoKoMMo Tiki Shack presents a relaxed beachfront dining experience. Tao of Peng serves authentic Hunan and Cantonese cuisine, while Viora Sky Lounge offers panoramic coastal views paired with crafted cocktails. The Gatsby Lounge adds a relaxed sports lounge concept with live match screenings, handcrafted beverages, and private gathering spaces.

Wellness remains a key focus at the resort. Guests can unwind at Amrtam Spa, enjoy the fitness centre, explore meditation gardens and nature trails, or participate in activities including beachside yoga and sunrise meditation. The property also features a sports pavilion, pickleball court, ATV trail, and dedicated recreational spaces for families and children through Planet Trekkers and the Secret Garden.

The resort further enhances guest experiences through curated cultural and heritage explorations of Mahabalipuram. Through its Concierge Gallery, guests can discover the destination’s history, art, and coastal character while engaging with thoughtfully designed local experiences.

Located just 60 minutes from Chennai International Airport and close to the UNESCO World Heritage Site of Mahabalipuram, the resort offers convenient access to one of India’s most culturally significant coastal destinations.

The transformation reflects IHG Hotels & Resorts’ continued focus on expanding its luxury and lifestyle portfolio across India while catering to the growing demand for destination-led travel experiences that combine leisure, celebrations, wellness, and business travel.


Taj Exotica Resort & Spa, Goa Adopts PNG Infrastructure to Advance Sustainable Hospitality

Taj Exotica Resort & Spa, Goa Adopts PNG Infrastructure to Advance Sustainable Hospitality

By Author

Published on May 31, 2026

Taj Exotica Resort & Spa, Goa has strengthened its sustainability efforts with the successful implementation of Piped Natural Gas (PNG) infrastructure across the resort. The move marks a significant milestone in the property's ongoing commitment to environmentally responsible operations and aligns with IHCL Goa’s sustainability and social impact framework, Paathya.

The introduction of PNG is expected to enhance energy efficiency across key operational areas, including kitchens, staff dining facilities, and utility services. As one of the cleanest-burning hydrocarbon fuels, PNG helps reduce carbon emissions while improving combustion efficiency and operational safety standards.

Beyond its environmental advantages, the transition also simplifies daily hotel operations. The adoption of a continuous piped supply removes the need for LPG cylinder handling, storage, transportation, and refill management. This not only improves operational continuity but also contributes to enhanced workplace hygiene, safety, and efficiency.

Commenting on the initiative, Ranjit Philipose, Senior Vice President – Operations, IHCL Goa, said that sustainability remains deeply embedded in the organisation’s approach to operations and growth. He noted that the implementation of PNG infrastructure at Taj Exotica Resort & Spa, Goa represents an important milestone in the Paathya journey and reflects the company’s commitment to adopting cleaner and future-ready solutions across its hotel portfolio.

He further added that responsible hospitality today extends beyond guest experiences and focuses on creating long-term positive impact through conscious decisions that benefit both the environment and local communities.

The latest initiative further reinforces IHCL Goa’s vision of integrating sustainable practices across its operations while supporting India's broader clean energy goals. Through projects aligned with the Paathya framework, the company continues to advance responsible luxury and environmentally conscious hospitality practices.


Lords Hotels Launches Lords Inn Katra Near Vaishno Devi Shrine

Lords Hotels Launches Lords Inn Katra Near Vaishno Devi Shrine

By Hariharan U

Published on May 30, 2026

Lords Hotels & Resorts has announced the launch of Lords Inn Katra, further strengthening the group’s footprint in India’s growing spiritual tourism market.

Located close to the revered Vaishno Devi Shrine, the new hotel is positioned to cater to both pilgrims and leisure travellers visiting one of the country’s most significant religious destinations.

Situated in the heart of Katra, the property features 45 rooms along with modern amenities and hospitality services designed to provide guests with a comfortable and convenient stay experience while reflecting the spiritual character of the destination.

According to the company, Katra continues to attract millions of visitors every year due to its religious importance and strong tourism connectivity, making it a key market for hospitality expansion.

Speaking about the launch, Pushpendra Bansal said the new property strengthens the brand’s regional presence while offering travellers a stay experience backed by the company’s hospitality standards and service approach.

Vikas Suri added that spiritual tourism in India continues to witness steady growth, with Katra remaining one of the country’s most important pilgrimage destinations. He noted that the launch aligns with the company’s broader strategy of expanding into high-potential spiritual and leisure markets.

Meanwhile, Kumar Roushan highlighted the group’s continued focus on strengthening its presence across Jammu & Kashmir while addressing the increasing demand for quality hospitality infrastructure in the region.

The hotel will also feature dining and guest facilities designed to offer convenience and relaxation for travellers during their visit.

With the addition of Lords Inn Katra, Lords Hotels & Resorts continues to expand its presence across India’s prominent pilgrimage and tourism destinations.

 has announced the launch of Lords Inn Katra, further strengthening the group’s footprint in India’s growing spiritual tourism market.

Located close to the revered Vaishno Devi Shrine, the new hotel is positioned to cater to both pilgrims and leisure travellers visiting one of the country’s most significant religious destinations.

Situated in the heart of Katra, the property features 45 rooms along with modern amenities and hospitality services designed to provide guests with a comfortable and convenient stay experience while reflecting the spiritual character of the destination.

According to the company, Katra continues to attract millions of visitors every year due to its religious importance and strong tourism connectivity, making it a key market for hospitality expansion.

Speaking about the launch, Pushpendra Bansal said the new property strengthens the brand’s regional presence while offering travellers a stay experience backed by the company’s hospitality standards and service approach.

Vikas Suri added that spiritual tourism in India continues to witness steady growth, with Katra remaining one of the country’s most important pilgrimage destinations. He noted that the launch aligns with the company’s broader strategy of expanding into high-potential spiritual and leisure markets.

Meanwhile, Kumar Roushan highlighted the group’s continued focus on strengthening its presence across Jammu & Kashmir while addressing the increasing demand for quality hospitality infrastructure in the region.

The hotel will also feature dining and guest facilities designed to offer convenience and relaxation for travellers during their visit.

With the addition of Lords Inn Katra, Lords Hotels & Resorts continues to expand its presence across India’s prominent pilgrimage and tourism destinations.

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