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.


Novotel Vijayawada Varun Begins the Festive Season with a Heartwarming Tree Lighting Ceremony

Novotel Vijayawada Varun Begins the Festive Season with a Heartwarming Tree Lighting Ceremony

By Manu Vardhan Kannan

Published on December 9, 2025

Novotel Vijayawada Varun welcomed the festive season with a warm and elegant Christmas Tree Lighting ceremony that brought together families, friends and the wider Vijayawada community. Guests arrived dressed in cheerful shades of red and white, adding to the cosy mood and reflecting the inviting spirit the hotel is known for.

The evening honoured the global tradition of lighting the Christmas tree, a custom that symbolises hope and togetherness. Novotel blended this festive heritage with its local connect, creating an experience that celebrated both culture and community. As the tree lit up, the space took on a magical glow, making it a picture-perfect moment for everyone present.

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Sharing his thoughts on the occasion, Hotel Manager Manish Pathak said, “Christmas at Novotel Vijayawada Varun is about creating meaningful moments for our guests. Our aim is to bring people together in a space that feels warm, familiar and joyful. This evening reminds us of the power of community and the happiness that comes from sharing simple, heartfelt experiences.”

Children were excited to meet Santa Claus, who handed out chocolates, adding a joyful moment to the evening. Christmas hats were also given to guests, and families gathered around the beautifully decorated tree to click photographs, creating memories that captured the joy of the season.

One of the highlights of the evening was the curated high tea at the Gourmet Bar. Guests enjoyed hot beverages and a refined selection of appetizers, all set within the venue’s stylish and warm ambiance. The Gourmet Bar once again proved to be one of the hotel’s most comforting and welcoming social spaces.

With thoughtful details, festive warmth and heartfelt hospitality, Novotel Vijayawada Varun created a memorable beginning to the holiday season.


The Leela Ambience Convention Hotel Delhi Unveils ‘The Tree of Hope’ This Christmas

The Leela Ambience Convention Hotel Delhi Unveils ‘The Tree of Hope’ This Christmas

By Hariharan U

Published on December 9, 2025

The Leela Ambience Convention Hotel, Delhi has welcomed the festive season with a thoughtful and inspiring showcase that reflects the brand’s long-standing commitment to sustainability. This year, the hotel introduced ‘The Tree of Hope’, a creative installation that blends conscious luxury with innovative design.

At The Leela, sustainability isn’t just a practice, it is woven into the guest experience, operations and community engagement. This philosophy shines through in the hotel’s festive décor for 2025.

The highlight of the celebrations is the impressive 80-ft façade Christmas tree, created using repurposed waste pipes and wires. Standing tall at the hotel’s exterior, the installation shows how everyday materials can be transformed into something elegant and meaningful through mindful design.

Inside the hotel, the centrepiece installation, The Tree of Hope, takes the concept further. Designed and built by the hotel’s in-house Engineering team, the structure uses reclaimed floorboards sourced from within the property. Each element reflects the hotel’s 15-year legacy, celebrating its journey while symbolising renewal and resilience.

Adding a personal and community-driven touch, all the festive ornaments have been handcrafted by local artisans. This collaboration brings authenticity to the décor and reinforces the hotel’s commitment to supporting local talent and promoting responsible sourcing.

Speaking about the initiative, Harkaran Singh, General Manager, said, “At #ThePrimeAddressofEastDelhi, we believe celebration must go beyond aesthetics to create impact. Our festive installations reflect our dedication to sustainable luxury, innovation and community engagement. Through these conscious creations, we hope to inspire our guests to celebrate with purpose and mindfulness.”

More than festive décor, these installations tell a powerful story of sustainability and creativity coming together. Guests are invited to see the season not only through its lights and colours, but through the values it represents, responsibility, innovation and care for the environment.

With The Tree of Hope, The Leela Ambience Convention Hotel continues to set new standards in conscious hospitality, redefining how luxury hotels can celebrate the festive season with purpose and vision.


Lemon Tree Hotels Announces New Signing in Jaipur, Expands Rajasthan Portfolio

Lemon Tree Hotels Announces New Signing in Jaipur, Expands Rajasthan Portfolio

By Hariharan U

Published on December 8, 2025

Lemon Tree Hotels Limited has announced the signing of its latest property, Lemon Tree Hotel, Pacific Mall, Jaipur. Managed by Carnation Hotels Private Limited, the hotel further strengthens the group’s growing footprint in Rajasthan, catering to both business and leisure travellers looking for a refreshing, value-driven stay.

Located in the heart of the Pink City, the new hotel brings guests closer to Jaipur’s mix of royal heritage and modern vibrancy. From iconic landmarks like Amber Fort and Hawa Mahal to colourful bazaars filled with handicrafts, jewellery, and traditional Rajasthani flavours, visitors can enjoy the charm that makes Jaipur one of India’s most-loved destinations.

The upcoming property will feature 124 well-appointed rooms, a restaurant and lounge, a meeting room, and recreational facilities including a swimming pool and fitness centre. Conveniently located, the hotel is around 8 km from Jaipur International Airport and 8.4 km from Jaipur Railway Station, with smooth connectivity across public and private transport.

Sharing his thoughts, Vilas Pawar, CEO — Managed & Franchise Business, Lemon Tree Hotels, said, “With this signing, we will expand our leisure and business portfolio in Rajasthan, where we have 12 operational and 9 upcoming properties in addition to this one. The state, with its booming commerce, distinct culture and testament to India’s rich heritage, is the perfect destination for hospitality. This signing aligns perfectly with our vision of offering refreshing and comfortable stays across all destinations.”

With this addition, Lemon Tree Hotels continues to strengthen its presence across tiered cities, reinforcing its commitment to accessible, comfortable, and modern hospitality.

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