FHRAI Proposes Hospitality Reforms for Budget 2025-26

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

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.”
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.
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.
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.

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.”

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.

IHCL Launches Tree of Life Amara Resort & Spa in Udaipur

By Author

Published on March 24, 2025

Indian Hotels Company (IHCL) has announced the opening of Tree of Life Amara Resort & Spa, Udaipur – a tranquil retreat tucked away in the Aravalli Hills. This boutique property offers an exclusive escape, perfectly blending nature with understated luxury.

The resort features 33 spacious villas, each offering private balconies with sweeping views of rolling hills, along with an infinity pool and an indulgent spa. Guests can dine at "Dawn," the resort’s signature restaurant serving a variety of global cuisines and traditional Rajasthani flavours, or unwind at "Dusk," a treehouse-inspired lounge known for its craft cocktails and vibrant sunset views.

Deepika Rao, executive vice president – Hotel Openings & New Businesses, IHCL, commented, “IHCL has always been a pioneer in shaping hospitality formats and destination-driven stays. With Tree of Life Resorts & Hotels joining the IHCL brandscape, we continue to create unique journeys that strike a balance between exclusivity and authenticity.” She added, “Tree of Life has established itself in the growing slow travel and experiential segment with 20 boutique properties, aiming to reach 100 hotels by 2030.”

Set beside the peaceful Vikrani lake, Tree of Life Amara Resort & Spa offers curated experiences such as guided village tours, nature walks, and cultural interactions, creating opportunities for guests to connect deeply with the region’s rural charm and traditions.

Rooted in the brand’s philosophy of offering havens away from the city bustle, Tree of Life properties are designed to be destinations in themselves, providing immersive experiences including wellness journeys, artisanal workshops, and soulful culinary encounters.

Alivaa Hotels Steps Into McLeodganj With Boutique Property

By Manu Vardhan Kannan

Published on March 23, 2025

Alivaa Hotels is all set to make its mark in Himachal Pradesh with a new boutique property in McLeodganj. Known for its premium offerings, the hospitality brand is expanding its reach to one of India’s most scenic and culturally rich destinations. The new hotel will offer spacious, well-designed rooms, a rooftop dining experience, a peaceful swimming pool, and a large coffee shop — setting the tone for a stay filled with both privacy and comfort.

This latest development comes on the back of Alivaa Hotels’ successful flagship property located on Sohna Road, Gurgaon. With McLeodganj’s vibrant Tibetan culture, bustling local markets, and serene monasteries, the hotel is perfectly positioned for travellers eager to explore the charm of the area.

Designed to serve both leisure and business travellers, the hotel promises personalised attention and finely curated services. Sharing his excitement, Akash Bhatia, CEO – Franchise & Managed Business, Alivaa Hotels, commented, “We are thrilled to announce the opening of Alivaa Hotels, McLeodganj, a destination that holds a unique charm for travellers. This property will further strengthen our presence in the leisure segment, complementing our soon-to-open resort in Jim Corbett. We look forward to offering a personalised experience to our guests in McLeodganj.”

Vikramjit Singh, Founder & CMD – Alivaa Hotels, added, “We are on track to reach our committed milestone of 50 hotels in 5 years. This is our fifth signing in our very first year of operations, and we have several more in the pipeline for the next quarter.”

Alivaa Hotels continues to grow as a leading name in high-end hospitality, blending modern comforts with elegant design. With a stronghold in prime destinations, the brand is known for delivering unique stays tailored for both business and leisure travellers. Its focus remains on providing top-notch amenities, chic interiors, and a personalised touch to every guest experience.

SaffronStays Introduces ‘X Series’—A New Benchmark in Ultra-Luxury Villas

By Nishang Narayan

Published on March 22, 2025

Luxury travel in India just got an upgrade with SaffronStays’ new X Series, a curated collection of ultra-luxury villas designed to offer unparalleled experiences for milestone events. Whether it’s a landmark birthday, an intimate wedding, or a private getaway, these villas provide privacy, exclusivity, and tailor-made services, making each stay unforgettable.

Beyond Luxury: A New Experience in Private Stays

Unlike traditional luxury accommodations, the X Series focuses on creating lasting memories rather than just offering high-end lodging. Each villa is situated in a breathtaking location, combining architectural elegance, interior sophistication, and world-class hospitality.

"The growing demand for luxury stays in India has led us to introduce the X Series, designed to offer distinctive experiences and redefine the luxury stay concept for today’s travellers," says Devendra Parulekar, Founder of SaffronStays.

Signature Villas That Define Exclusivity

Every property in the X Series is a destination in itself, offering unique charm and character:

SaffronStays SATORI – A serene retreat overlooking Lake Mulshi, offering panoramic views and peaceful surroundings
SaffronStays Stella Maris – A stunning beach house near the Maharashtra-Goa border, perfect for seaside luxury and relaxation.
Seven Doors House – A restored 1932 Portuguese villa in Goa, blending heritage charm with modern indulgence.

Tailor-Made Luxury & Bespoke Services

Each villa is designed to offer a seamless fusion of comfort, elegance, and personalized hospitality, featuring:

Chef-curated gourmet meals
World-class amenities
Tranquil settings for relaxation
Exclusive privacy for intimate celebrations

With a commitment to quality and immersive experiences, SaffronStays’ X Series is set to redefine India’s luxury hospitality landscape, ensuring every stay is extraordinary and deeply personal.

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FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

Key Recommendations by FHRAI

Addressing Industry Challenges

Vision 2047: A $1 Trillion Tourism Economy

Most Read In News

IHCL Launches Tree of Life Amara Resort & Spa in Udaipur

Most Read In News

Alivaa Hotels Steps Into McLeodganj With Boutique Property

Most Read In News

SaffronStays Introduces ‘X Series’—A New Benchmark in Ultra-Luxury Villas

Beyond Luxury: A New Experience in Private Stays

Signature Villas That Define Exclusivity

Tailor-Made Luxury & Bespoke Services

Most Read In News