Key Budget 2025 Announcements for the Tourism and Hospitality Industry

Key Budget 2025 Announcements for the Tourism and Hospitality Industry

By Manu Vardhan Kannan

Published on February 1, 2025

The Union Budget 2025 has been presented today, The government of India has unveiled several key initiatives that will shape the future of Hospitality and Tourism industries.

One of the standout announcements is the development of the top 50 tourism sites across the country, which will be taken up in a challenge mode with the states. Hotels under this initiative will be included in the harmonized infrastructure list, providing them with necessary resources and support.

In a move to foster employment-led growth, the government plans to launch intensive skill development programs in hospitality management institutes. Along with this, Mudra Loans will be available for homestays, and Performance Linked Incentives (PLIs) will be given to states for effective destination management, including marketing efforts and the provision of tourist amenities. E-visa facilities will also be extended to certain tourist categories, streamlining the travel process for international visitors.

Additionally, medical tourism is set to receive a significant push under the “Heal in India” program. In partnership with the private sector, the government will work towards attracting international patients seeking quality and affordable medical treatment in India. This will be facilitated by improved visa norms and enhanced capacity in the healthcare sector.

The UDAAN regional connectivity scheme, which has already brought air travel closer to the middle class by enabling 1.5 crore people to travel, will see further improvements. A modified version of this scheme will be rolled out to enhance regional connectivity to 120 new destinations, aiming to carry 4 crore passengers in the next decade. The scheme will also support the development of helipads and smaller airports in hilly and underserved regions.

Further development will take place in Bihar with the facilitation of Greenfield airports to meet the growing travel demand. This will complement the ongoing expansion of Patna airport, further boosting connectivity in the state.

In another major move, the government has proposed an extension for startups, allowing a 5-year extension on the period of incorporation, with the new deadline set for 2030 and It’ll shape up the future of food and beverage industry 

On the personal finance front, Finance Minister Nirmala Sitharaman announced a relief for taxpayers. The income tax limit for tax-free individuals will be raised from INR 7 lakh to INR 12 lakh, meaning those earning up to INR 12 lakh will not have to pay any income tax starting from the next financial year  and this move will gives financial benefits to the small players of food and beverage industry

These announcements showcase the government's dedication to elevating India as a world-class tourism destination and a prominent player in the global medical tourism market, with significant efforts being made to enhance infrastructure and drive growth in these sectors.


Royal Orchid Signs Regenta Z Hotel in Vrindavan, Mathura

Royal Orchid Signs Regenta Z Hotel in Vrindavan, Mathura

By Manu Vardhan Kannan

Published on April 12, 2026

Royal Orchid & Regenta Hotels Ltd. has announced the signing of Regenta Z – Vrindavan, Mathura, marking another step in its expansion across India’s fast-growing religious tourism sector. The move reflects the brand’s focus on building a strong presence in key spiritual destinations.

Located around 6 km from Prem Mandir and 10 km from the Mathura Railway Station, the upcoming hotel is well placed to serve both pilgrims and leisure travellers visiting the region. The property is expected to be handed over in April 2027.

The Greenfield project will operate under the Regenta Z brand, which is designed for boutique-style hospitality with a focus on efficiency and quality service. The hotel will offer 36 rooms, along with a multi-cuisine restaurant and a dedicated banquet hall. This makes it suitable for social gatherings, religious functions, and small corporate events.

Sharing his thoughts, Chander Baljee, chairman & managing director, Royal Orchid & Regenta Hotels, said, "The signing of Regenta Z in Vrindavan is a significant milestone in our journey to strengthen our presence in India’s most revered spiritual destinations. As religious tourism continues to witness unprecedented growth, our goal is to provide devotees and travelers with the perfect blend of modern comfort and traditional hospitality. This new property not only expands our asset-light portfolio but also reinforces our commitment to delivering exceptional experiences in markets with deep-rooted cultural importance."

The property is owned by Sachin Aggarwal, and the agreement has been finalised through a Head of Agreement (HOA). The project follows an asset-light model, aligning with the company’s strategy to tap into year-round demand in Vrindavan’s religious tourism market.

With this signing, Royal Orchid & Regenta Hotels continues to strengthen its footprint in major spiritual hubs across the country, aiming to offer reliable and comfortable stay options for travellers visiting these culturally significant destinations.


Hilton Partners with Royal Orchid to Launch 125 Hampton Hotels in India

Hilton Partners with Royal Orchid to Launch 125 Hampton Hotels in India

By Manu Vardhan Kannan

Published on April 12, 2026

Hilton has announced a strategic partnership with Regenta Hotels Private Limited, owned by Royal Orchid Hotels Limited, to bring 125 Hampton by Hilton hotels to India by 2035. This move marks a major step in Hilton’s expansion plans, focusing on the growing demand in the country’s mid-market segment.

The new hotels will be developed mainly across western and southern regions, including Goa, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. These locations are seeing steady growth in both business and leisure travel, making them ideal for the brand’s expansion.

Sharing his views, Alan Watts, president, Asia Pacific, Hilton said, “India’s economic growth, expanding middle class and rapid infrastructure development are reshaping the country’s travel landscape, creating significant opportunities for our brands. Our new strategic partnership with the Regenta Hotels Group demonstrates our commitment to working with established local operators, enabling us to scale our franchise footprint rapidly while maintaining the strength and consistency of Hilton’s brands.”

This agreement is part of Hilton’s broader strategy to grow through partnerships with strong local players. It also marks the company’s third such agreement in India, showing a clear focus on scaling its presence through a large pipeline of developments.

With improving connectivity and rising domestic travel, demand for quality branded stays is expanding beyond metro cities. Hampton by Hilton, known for its consistent service and value-driven offering, is well positioned to meet the needs of travellers in emerging cities and commercial hubs.

Christian Charnaux, executive vice president and chief development officer, Hilton, said, “As we continue to strengthen our network effect around the world, India remains a strategic long-term growth market for Hilton. For owners, Hampton by Hilton delivers industry-leading returns through an efficient operating model and broad guest appeal. This agreement further reinforces the global strength of the Hampton brand and our confidence in the long-term growth of India’s midmarket hospitality sector.”

Hampton by Hilton is the company’s largest brand by number of hotels and has been recognised as the #1 lodging franchise by Entrepreneur for 17 consecutive years. The brand operates in 46 countries and is known for its friendly and reliable service, often referred to as ‘Hamptonality’.

Chander Baljee, founder chairman & managing director, Royal Orchid Group, said, “We are proud to partner with Hilton to scale Hampton by Hilton in India. Our portfolio is a healthy mix of owned, managed and franchised properties, and this partnership with Hilton will drive significant growth in the country’s mid-market hospitality segment. As domestic travel continues to grow and new economic centers emerge across the country, we see a significant opportunity to expand the Hampton by Hilton brand across cities in India.”

Arjun Baljee, president, Royal Orchid Hotels, added, “Partnering with Hilton to bring 125 Hampton properties to life is a strategic leap in our 50-year journey. It complements our ethos of bolstering India’s mid-market segment with hotels that deliver great value, service efficiency and thoughtful design, alongside the globally renowned Hampton brand experience. Over the next 10 years, the hospitality opportunity will enable jobs creation for local communities besides offering travelers across the country a quality stay experience.”

The upcoming Hampton by Hilton hotels in India will be designed keeping local preferences in mind while maintaining the brand’s global standards. Guests will also benefit from Hilton Honors, the company’s loyalty programme, offering perks like flexible payment options, member discounts and digital check-in features through its mobile app.


IHCL Signs Gateway Resort in Kasauli, Himachal Pradesh

IHCL Signs Gateway Resort in Kasauli, Himachal Pradesh

By Manu Vardhan Kannan

Published on April 10, 2026

Indian Hotels Company (IHCL), India’s largest hospitality company, has announced the signing of a new resort in Kasauli, Himachal Pradesh. This greenfield project will be developed under the Gateway brand, further strengthening the company’s presence in the region.

Sharing her thoughts on the development, Ms. Suma Venkatesh, Executive Vice President – Real Estate and Development, IHCL said, “Kasauli, with its serene surroundings and colonial charm, is a sought-after leisure destination in North India. Its proximity to key urban centres makes it an ideal getaway for travellers seeking respite in the hills. We are delighted to partner with Vasuki Hospitality Private Limited for this project.”

The upcoming Gateway Kasauli will feature 96 keys and offer scenic views of the surrounding hills. The resort will include a range of dining options such as an all-day dining restaurant, a specialty restaurant, and a bar. Guests can also access facilities including a heated swimming pool, fitness centre, and a spa.

The property is also designed to cater to events and gatherings, with banqueting facilities spanning over 4,000 sq ft., making it suitable for weddings, social events, and corporate retreats.

Mr. Anshul Singla, Director, Vasuki Hospitality Private Limited stated, “We are happy to foray into the hospitality industry with a partner like IHCL. Kasauli’s scenic beauty and growing popularity as a holiday destination, offers immense potential for development in the region.”

Located in the foothills of the Shivalik range, Kasauli is known for its calm environment, colonial-era charm, and scenic views. The destination attracts travellers for nature walks, trekking trails, and landmarks such as Christ Church and Gilbert Trail.

With this addition, IHCL will have a total of 27 hotels in Himachal Pradesh, including 12 currently under development, further expanding its footprint in the state.

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