Hospitality Leaders Applaud Union Budget 2025's Boost for Tourism & Innovation

Hospitality Leaders Applaud Union Budget 2025's Boost for Tourism & Innovation

By Manu Vardhan Kannan

Published on February 5, 2025

The Union Budget 2025 has set the stage for significant advancements in India's hospitality and tourism sectors. Industry leaders have expressed optimism about the budget’s strategic focus on tourism infrastructure, enhanced connectivity, and skill development initiatives that are expected to elevate India's global standing as a prime travel destination.

Strengthening Tourism & Hospitality Infrastructure

Mr. Sarbendra Sarkar, Founder & MD of Cygnett Hotels and Resorts, welcomed the government’s emphasis on tourism, particularly the development of 50 key destinations under challenge mode. He highlighted how initiatives such as streamlined e-visas and visa-free access for select tourist groups will boost international footfall. He also appreciated the inclusion of new hotels in these destinations in the Infrastructure Harmonized List (HML), allowing hospitality investors to access infrastructure lending under more favorable terms.

“The move to include new hotels in the HML will provide easier access to larger funds through External Commercial Borrowings (ECBs), enabling greater expansion and modernization in the hospitality sector,” said Mr. Sarkar.

image

Additionally, he noted the positive impact of the government's modified UDAN scheme, which aims to strengthen connectivity to 120 new destinations, particularly focusing on the northeastern region’s helipad development. The enhanced connectivity will unlock untapped tourism potential, further promoting India’s cultural and historical sites.

Hospitality Industry’s Growth Prospects

Echoing similar sentiments, Mr. K Syama Raju, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), emphasized the budget’s role in developing top tourism destinations in partnership with state governments. He lauded the decision to grant Infrastructure Status to hotels in these areas, which will facilitate long-term, cost-effective financing and improve hospitality standards.

“The inclusion of hotels in the harmonious master list aligns with our long-standing request for Infrastructure Status, allowing access to lower-cost funding for hospitality expansion,” said Mr. Raju.

image

Another major highlight was the focus on medical and wellness tourism through the 'Heal-in-India' initiative. With India already being a global leader in affordable, high-quality medical treatments, this initiative is set to attract more international patients, strengthening the country’s healthcare tourism sector.

The government’s focus on religious tourism was also well received. Enhancing infrastructure at key pilgrimage sites is expected to create more organized and accessible travel experiences for both domestic and international visitors. Additionally, the visa fee waivers and simplified e-visa options will further support inbound tourism growth.

Support for Entrepreneurship & Innovation

Innovation and entrepreneurship were also key focus areas in the budget, receiving praise from Mr. Sanandan Sudhir, Founder and CEO of On2Cook. He highlighted the government’s Rs 20,000 crore allocation to promote innovation and the introduction of a fund of funds for next-generation entrepreneurs as pivotal measures for fostering global capabilities in India.

“We appreciate the introduction of the National Framework for promoting innovation in tier 2 cities and the proposal for Centres of Excellence in AI for Education. These initiatives, coupled with the Bharat Trade Net platform to enhance international trade, will play a crucial role in positioning India as a global innovation hub,” said Mr. Sudhir.

image

However, he also urged the government to reconsider the current tax regime and introduce lower GST rates for sustainable, globally patented products. He further suggested subsidizing international certification costs to ease export market entry for startups.

The Road Ahead

Overall, the Union Budget 2025 has been met with enthusiasm from the hospitality and innovation sectors. With targeted infrastructure investments, enhanced connectivity, and policy support for tourism and entrepreneurship, industry leaders believe these measures will position India as a premier global destination for travelers, businesses, and investors alike.


The Adyar House Brings Boutique Homestays with a Chennai Touch

The Adyar House Brings Boutique Homestays with a Chennai Touch

By Manu Vardhan Kannan

Published on April 18, 2026

Chennai’s hospitality space is seeing a fresh and personal addition with The Adyar House, a boutique homestay concept started by a father-son duo, Satish and Anirudh Rao. Located in Adyar and Nandanam, the two properties reflect a simple idea, creating a stay that feels rooted in Chennai’s culture while offering the comfort of a modern space.

The journey began a year ago with their first property in Padmanabha Nagar, Adyar. What was once their family home of ten years was turned into a boutique homestay, built around warmth and familiarity. While neither Satish nor Anirudh comes from a traditional hospitality background, their shared interest in creating meaningful guest experiences shaped the idea. Satish, an ex-salesman turned entrepreneur, and Anirudh, an Ashoka University graduate and former consultant who is now a restauranteur, have brought their own perspective into the space.

image

Adding to the Adyar property is TERU, Anirudh’s restaurant on the ground floor. The outlet focuses on South Indian street food, offering regional favourites such as Salem’s Thattu Vada Set, Andhra’s Punugulu, and Mangalore’s Banana Buns, making the property a destination not just for stay but also for food.

Following the response to their first space, the duo recently opened their second property on Chamiers Road, Nandanam. This seven-room homestay carries a strong Chennai theme, with each room named after a well-known beach in the city. The design reflects this idea through small but thoughtful details, including shoreline photographs, surfer-inspired elements in the Kovalam room, and the Shore Temple featured in the Mamallapuram room. Even the keycards carry illustrated beach designs, adding a playful touch.

The property is designed to be both comfortable and easy to navigate. Guests can choose between assisted check-in or a self-check-in option with keycards placed in lockboxes and access details shared in advance. Accessibility has also been considered, with features such as a ramp at the entrance, lift access, and clear guides for services like WiFi and check-in.

Each room comes with basic comforts including air-conditioning, a television, kettle, and refreshments. Guests also have access to shared facilities like a kitchenette, washing machines, and dryers, making it suitable for both short and slightly longer stays.

What stands out is the effort to offer an authentic Chennai experience. Guests receive personalised welcome cards with recommendations on places to visit and things to do around the city, reflecting the hosts’ connection to Chennai and their intent to share it with visitors.

With properties in Adyar and Nandanam, The Adyar House offers a stay that balances familiarity with thoughtful design, making it a comfortable option for both travellers and locals looking to experience the city in a different way. For more information visit their website: www.theadyarhouse.com   


IHCL Signs New Gateway Hotel in Dirang, Arunachal Pradesh

IHCL Signs New Gateway Hotel in Dirang, Arunachal Pradesh

By Manu Vardhan Kannan

Published on April 18, 2026

Indian Hotels Company (IHCL) has announced the signing of a new Gateway hotel in Dirang, Arunachal Pradesh. This greenfield project marks another step in the company’s expansion into emerging travel destinations across India.

Sharing details on the development, Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Supported by its natural landscape and improving accessibility, Dirang is witnessing growing demand from both leisure travellers and adventure enthusiasts. Its strategic location enroute to Tawang positions it as an important destination in Arunachal Pradesh’s tourism itinerary. The signing of Gateway Dirang reflects IHCL’s focus on pioneering new and emerging destinations and we are delighted to partner with Mr. Phurpa Tsering for this project.”

The upcoming Gateway Dirang will feature 70 rooms and will include an all-day dining restaurant, a speciality restaurant, and a bar. The hotel will also offer a banquet hall along with dedicated meeting spaces, catering to both leisure and business travellers. Recreational facilities planned for the property include a swimming pool, fitness centre, and spa.

Mr. Phurpa Tsering, said, “We are pleased to partner with IHCL to introduce the Gateway brand to Dirang. As the destination continues to gain prominence, this collaboration brings IHCL’s expertise to the region supporting sustainable tourism and local development.”

Located in the West Kameng district, Dirang is known for its scenic surroundings, including apple orchards, terraced farms, and pine-covered hills. The destination is also popular for its natural hot water springs, attracting travellers exploring the region, especially those en route to Tawang.

With this addition, IHCL will have a total of 21 hotels in the North East, including 12 that are currently under development. The move highlights the company’s continued focus on expanding its presence in lesser-explored regions while supporting tourism growth in the area.

Mr. Phurpa Tsering and his family, who are the owners of the project, are well-known developers in Dirang with a strong presence in the construction sector. They also operate cinema halls and are among the largest cinema screen operators in the North-East region.

The signing of Gateway Dirang reflects a growing interest in the North East as a travel destination and underlines IHCL’s strategy of bringing branded hospitality to new locations.


Country Inn Expands in Uttarakhand with New Hotels in Dehradun and Rishikesh

Country Inn Expands in Uttarakhand with New Hotels in Dehradun and Rishikesh

By Manu Vardhan Kannan

Published on April 17, 2026

Country Inn Hotels & Resorts, the flagship brand of Espire Hospitality Limited, has strengthened its presence in Uttarakhand with the launch of three new properties – Country Inn, Dehradun, Country Inn, Rishikesh, and Country Inn Smart Stays, Rishikesh. This expansion also marks the introduction of a new brand format, Country Inn Smart Stays, designed to offer a more youthful and modern travel experience.

With these additions, the brand continues to grow across key destinations in the state, building on its existing presence in Mussoorie, Bhimtal, and Jim Corbett. The move reflects a balanced expansion across both city locations and popular leisure destinations.

Country Inn, Dehradun, a 53-key property, is located on Saharanpur Road along the Delhi–Dehradun Expressway corridor. With travel time now reduced to around 2.5 hours, the hotel offers convenient access for both business and leisure travellers. The property features spacious rooms, a multi-cuisine restaurant called Sutra, and large event spaces including the Crystal Ballroom and Aura Hall, making it suitable for weddings, conferences, and social events.

In Rishikesh, the brand has introduced two distinct formats to cater to different types of travellers. Country Inn, Rishikesh, located in Tapovan, offers 28 rooms including suites with views of the Ganga. The hotel is close to well-known landmarks such as Lakshman Jhula and Parmarth Niketan Ashram. It also features a casual dining restaurant and a compact event space overlooking the river, making it ideal for a comfortable and well-connected stay.

The second property, Country Inn Smart Stays, Rishikesh, marks the launch of a new brand under the portfolio. Located within walking distance of Lakshman Jhula, the hotel offers 31 rooms along with a rooftop swimming pool, dining area, BOHO Café, and a recreation zone. The concept focuses on smart spaces and easy, experience-led stays, especially for younger travellers.

image

Speaking about the expansion, Mr. Akhil Arora, Chief Executive Officer and Managing Director of Espire Hospitality Group, said, “Uttarakhand continues to be a strong focus market for us, given its growing appeal across leisure, spiritual, and experiential travel. With the opening of three new Country Inn properties and one more coming very soon across Dehradun and Rishikesh, we are strengthening our presence across the state while catering to a diverse mix of travellers. From urban stays in Dehradun to multiple formats in Rishikesh, this expansion reflects our intent to be present across key destinations with offerings for diverse travellers”

“These additions will play an integral role in our overall growth strategy. With over 30 signed hotels and a plan to add at least 1,000 keys every year, we are on track to achieve the milestone of 45 hotels by the end of FY27.”

With this expansion, Country Inn Hotels & Resorts continues to build its footprint in Uttarakhand, offering a mix of stay options that cater to different travel needs while supporting its long-term growth plans.

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.