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.

image

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.”

image

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.


Four Seasons Hotel Mumbai Reveals ‘Constellar’ Ballroom with Unique Design Story

Four Seasons Hotel Mumbai Reveals ‘Constellar’ Ballroom with Unique Design Story

By Manu Vardhan Kannan

Published on April 21, 2026

Four Seasons Hotel Mumbai has unveiled ‘Constellar’, the official name and identity of its expansive 10,000-square-foot ballroom facility. The announcement adds a new layer of meaning to the space, bringing together thoughtful design, symbolism, and a narrative that reflects the hotel’s architectural style and its legacy of refined hospitality.

Introduced earlier this year, the ballroom has already positioned itself as one of Mumbai’s most sophisticated venues for weddings, celebrations, and corporate gatherings. With the introduction of ‘Constellar’, the space now carries a strong visual and conceptual identity, giving it a deeper presence.

The name ‘Constellar’ takes inspiration from constellations, symbolising connection, brilliance, and timeless beauty. This idea is reflected in the logo, which features a four-circle icon drawn from the ballroom’s architectural detailing, especially the circular patterns seen at the grand entrance. These elements come together to form a balanced and elegant motif, linking the interiors with the visual identity. A subtle star formed within the design further connects to the theme of constellations, while the four circles also represent the Four Seasons legacy, making the brand an integral part of the design story.

“Constellar, inspired by constellations, redefines how we envision celebrations coming together with intention, beauty, and meaning. With Constellar, we have given our ballroom a distinct character rooted in contemporary design, advanced technology, culinary craftsmanship, and a passionate team. It is ultimately brought to life by our esteemed guests, who make each celebration unique and memorable,” shares Nitesh Gandhi, General Manager, Four Seasons Hotels Mumbai.

Located in Worli, the 10,000-square-foot facility brings together scale and elegance. It begins with a 500-square-foot private arrival foyer that opens into a 1,300-square-foot pre-function area, leading to a 7,000-square-foot banqueting space. At its centre is a 5,700-square-foot pillarless hall with a 19-foot ceiling, designed to host large gatherings with ease. The interiors follow a modern and contemporary style, while features such as a 1,000-square-foot LED wall, digital signage, and modular setups offer flexibility for different event formats. Seamless connectivity to The Great Room ensures smooth transitions for weddings, soirées, and large-scale launches.

Every event here is shaped by Four Season’s approach to personalised service, supported by dedicated specialists and attention to detail. With ‘Constellar’, the ballroom moves beyond just a venue, offering a space where design, technology, and meaningful experiences come together.


Lemon Tree Signs Garudeshwar Hotel

Lemon Tree Signs Garudeshwar Hotel

By Hariharan U

Published on April 20, 2026

Lemon Tree Hotels Limited has announced the signing of a new property in Garudeshwar, further strengthening its footprint in Gujarat’s growing tourism and pilgrimage-driven markets.

With this addition, the company’s portfolio in the state will expand to 32 properties, including 11 operational and 21 upcoming hotels. The move reflects the brand’s strategy of building scale in high-growth destinations supported by strong travel demand.

The upcoming Lemon Tree Hotel Garudeshwar will feature 90 rooms along with a restaurant, banquet hall, and meeting facilities. Recreational amenities such as a swimming pool, spa, and fitness centre are also part of the development.

The hotel will be managed by Carnation Hotels Private Limited, the management arm of Lemon Tree Hotels.

Gujarat continues to witness rising tourist inflow, driven by landmark attractions like the Statue of Unity and growing interest in spiritual and cultural travel. Garudeshwar is increasingly emerging as a key destination within this ecosystem, benefiting from improved infrastructure and proximity to major tourist circuits.

The property is well connected by road and is located approximately 85 km from Vadodara International Airport and around 5 km from Ekta Nagar Railway Station, offering convenient access for travellers.

Commenting on the signing, Neelendra Singh, Managing Director of Lemon Tree Hotels, said that "Destinations like Garudeshwar are becoming important nodes in India’s expanding tourism landscape". He noted that increasing visitor flows are driving demand for quality branded hospitality, and the company remains focused on tapping such opportunities to strengthen its regional presence.


SAMHI Partners Ingka Centres Noida

SAMHI Partners Ingka Centres Noida

By Hariharan U

Published on April 20, 2026

SAMHI Hotels Limited has signed an agreement with Ingka Centres India Private Limited to develop an upscale hotel in Noida, marking a significant addition to the region’s evolving hospitality landscape.

The project will be developed within Ingka Centres’ upcoming mixed-use development, spread across approximately 2.5 million square feet. Envisioned as a marquee project, it is expected to enhance Noida’s skyline while strengthening its position as a key commercial and hospitality hub in the Delhi NCR region.

The planned hotel will feature around 162 rooms and will be integrated into Ingka Centres’ “Meeting Places” concept—a retail-led ecosystem that combines shopping, leisure, and community-driven experiences. The development also aims to support local businesses and create dynamic workspaces, positioning itself as a modern urban destination.

This collaboration brings together SAMHI’s institutional operating platform and Ingka Centres’ global development expertise. The partnership aligns with SAMHI’s strategy of working with leading institutional organisations while continuing to expand through a capital-efficient model.

Located within a high-quality mixed-use environment, the hotel is expected to benefit from strong captive demand and high visibility. The project will be executed under SAMHI’s long-term variable lease model, allowing for alignment of interests while maintaining a capital-light approach.

Under the agreement, Ingka Centres will lease the building structure, including façade and high-side engineering, while SAMHI will invest in the interior fit-outs. The hotel will be operated under an international brand, which is yet to be announced.

Commenting on the development, Ashish Jakhanwala, Chairman and Managing Director of SAMHI Hotels, said the partnership marks an important step in scaling operations in the National Capital Region. He highlighted the project’s strong demand fundamentals and expressed confidence in delivering a landmark hospitality asset in collaboration with Ingka Centres.

Giovanni Princiotta Cariddi, Country Manager India at Ingka Centres, said the collaboration reflects the company’s vision of building integrated spaces where people can live, work, shop, and stay. He added that the inclusion of a high-quality hospitality offering will enhance the overall experience of the destination.

The project further strengthens SAMHI’s presence in the Delhi NCR region, where it already operates properties such as Hyatt Place Gurgaon, Holiday Inn Express Gurgaon, and Holiday Inn Express Greater Noida.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.