Pre-Budget 2026 Expectations: Tourism & Hospitality Push for Structural Reforms to Sustain Growth

Pre-Budget 2026 Expectations: Tourism & Hospitality Push for Structural Reforms to Sustain Growth

By Author

Published on January 25, 2026

The tourism and hospitality sector currently faces a critical moment as India prepares for its Union Budget 2026. The sector which emerged as a major force for economic recovery and job creation and regional development now seeks permanent changes through structural policy reforms instead of temporary benefits. Industry leaders believe that with the right fiscal and regulatory support, tourism and hospitality can evolve from being viewed purely as a service segment to becoming a key infrastructure and growth driver for the country.

Sharing his expectations, Dinesh Yadav, Founder and MD of Fine Acers, highlights the urgent need for comprehensive policy support to match the sector’s rapid expansion, “As we approach Budget 2026, the hospitality sector is looking for structural policy support that reflects its growing economic contribution and long-term capital intensity. The industry is experiencing a significant expansion, with the projected CAGR being about 10-11%. This growth is mainly owing to the attraction of domestic tourists, the MICE sector and the swift advent of experiential travel in Tier II and III destinations. On the other hand, if the industry wants to keep the same pace, it needs a complete policy overhaul and not just short-term remedies.

One of the long-awaited measures is to give the whole hospitality industry, rather than just selected parts, the status of an infrastructure. This move would pave the way for the access of long-term and low-cost funding which is vital for the completion of the projects that have long gestation periods. Besides this, the GST reform especially concerning room rates and bundled hospitality services where the high tax rates still pose a threat to price competitiveness and thus indirectly to occupancy-led growth, is peremptory.

New forms of ownership and financing, like the sale-leaseback model, should be more clearly recognized in terms of policy. These models help developers recycle capital, improve balance sheets and attract institutional participation. Simplifying approvals granting single-window clearances and standardizing compliance procedures across states, which would lead to a significant reduction in the time and cost involved in project execution. Even more, the tourism sector, which has been the main recipient of Budget 2026, can really reposition hospitality not only as a service industry but also as one of the main infrastructure drivers of India's growth story." Yadav Added

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Govind Gaur, CEO, WanderOn

Echoing similar sentiments from the travel segment, Govind Gaur, CEO, WanderOn, underscores the importance of domestic tourism and infrastructure-led growth, “As we look ahead to the upcoming Union Budget 2026, the travel and tourism sector hopes for continued emphasis on growth, infrastructure and strengthening of consumer confidence. Domestic tourism can become the backbone of India’s tourism landscape, if the government focuses more towards increased infrastructural connectivity, expansion of airports and improving rail travel.

The industry is also looking forward to an ‘Industry status’ to travel and tourism, which would enable easier access to credit and lower financing costs. If these measures are addressed in Budget 2026, travel would become more affordable for consumers, enhancing margins and boosting the circular economy.”

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Dr Vikas Katoch, Founder and CEO, Adotrip

From a digital travel and destination discovery perspective, Dr Vikas Katoch, Founder and CEO, Adotrip, stresses the need for GST rationalisation, easier financing, and continued support for sustainable tourism initiatives, “As India’s travel industry continues with its robust recovery, we expect budget 2026 to rationalize GST for the sector. It is also important to make compliance more seamless, improve credit access so that financing can become easier. Addressing these will benefit both consumers and businesses, as travel and hospitality will become more affordable for them, businesses can get a change to innovate and grow and there will be healthy competition in the market.

The government’s further support for sustainable tourism, heritage circuits, and domestic travel promotion will be critical in diversifying demand across regions. The government has already demonstrated strong intent through sustained investments in infrastructure, destination branding, and tourism-led regional development. Building on this momentum in Budget 2026 can help India unlock significantly higher economic value, employment generation, and inclusive growth through tourism.”

Budget 2026 gives India a chance to transform its tourism and hospitality industry according to the expert opinion of industry professionals. The sector seeks reforms which will create sustainable growth through industry recognition and infrastructure status and simplified GST rules and better financing options and support for new ownership models. The upcoming budget needs strategic policy changes because domestic tourism is increasing and international interest in India is growing, which will establish tourism and hospitality as a key driver of India's economic and job growth.


Ganpati Group Invests ₹250 Crore in Proposed Sheraton Hotel in Lucknow

Ganpati Group Invests ₹250 Crore in Proposed Sheraton Hotel in Lucknow

By Hariharan U

Published on October 24, 2026

Ganpati Group has announced a planned investment of approximately ₹250 crore in a proposed 200-key hotel in Lucknow, in partnership with Sheraton Hotels and Resorts, marking a strategic move into branded hospitality for the diversified business group.

Located in Vibhuti Khand, the proposed development will combine Ganpati Group's real estate development capabilities with Sheraton's established international hospitality brand and management expertise. The project is part of the Group's broader strategy to expand its hospitality portfolio across key urban markets.

Ganpati Group is targeting the addition of approximately 800–1,000 hotel keys over the next three to five years. Hospitality is also a component of its upcoming development portfolio, valued at approximately ₹2,000 crore across residential, commercial and hospitality projects. Lucknow and Visakhapatnam are among its immediate focus markets.

Commenting on the announcement, Nikhil Agarwal, Managing Director, Ganpati Group, said, “Hospitality is an important pillar of our long-term growth strategy, and our planned ₹250 crore investment in Lucknow, in partnership with Sheraton Hotels and Resorts, reflects our conviction in the potential of India's evolving hospitality market. We believe markets that combine a growing business ecosystem, infrastructure development and tourism potential offer compelling opportunities for quality hospitality assets. Lucknow brings these fundamentals together, making it an important market for our expansion. By combining our real estate development capabilities with Sheraton Hotels and Resorts' established global hospitality expertise, we aim to contribute to the city's evolving hospitality infrastructure while building a stronger, more diversified portfolio for Ganpati Group.”

The partnership reflects the Group's approach of combining strategically positioned real estate investments with established international hospitality brands. Branded hotels are expected to play a growing role in diversifying its business and supporting long-term expansion across business and leisure destinations.

Lucknow's position as Uttar Pradesh's capital, along with its expanding business ecosystem, infrastructure development and tourism potential, underpins the investment. The proposed hotel is intended to contribute to the city's hospitality infrastructure as demand evolves across business, administrative and leisure travel segments.

The announcement also aligns with Ganpati Group's wider development plans across residential, commercial and hospitality real estate, with the Group looking to build a broader presence in markets offering opportunities for long-term growth.

About Ganpati Group

Founded in 1972 as a family business, Ganpati Group is a diversified conglomerate headquartered in Agra, Uttar Pradesh, with interests in real estate, hospitality and healthcare. Its flagship real estate arm, Ganpati Infrastructure Development Company Limited, has delivered more than 20 residential and commercial projects across Agra, Vrindavan and other markets.

Its portfolio includes developments such as Ganpati Wonder City, Ganpati Classique and Ganpati World, alongside ongoing projects including Ganpati Smart City, Ganpati Upvana and Ganpati Capital Court in Lucknow. The Group is led by Chairman Anil Agrawal and Managing Director Nikhil Agarwal


Hyatt Place Dholera: GAP Group Begins Work on Proposed Five-Star Hotel

Hyatt Place Dholera: GAP Group Begins Work on Proposed Five-Star Hotel

By Manu Vardhan Kannan

Published on October 24, 2026

GAP Group has commenced work on Hyatt Place Dholera, a proposed five-star hotel being developed in partnership with Hyatt in Gujarat's Dholera Special Investment Region (SIR). The upcoming property will feature 200 rooms, including 20 suites, bringing an internationally recognised hospitality brand to the developing industrial region.

The groundbreaking ceremony was performed by former Gujarat Cabinet Minister Bhupendra Singh Chudasama and Kalubhai Dabhi, MLA from Dhandhuka. Sonale Zagade, General Manager at Hyatt Group, unveiled the hotel's finalised design, offering the first look at the upcoming development. The occasion also included a tree plantation by the dignitaries.

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Gujarat Chief Minister Bhupendra Patel also visited GAP Group's Akhilam Township, where he explored the Hyatt Place Dholera site and other developments, including Avant, the coworking space and the food court. He was accompanied by Gujarat Chief Secretary M. K. Das, Chief Minister's Advisors Hasmukh Adhia and S. S. Rathore, Dholera Industrial City Development Limited (DICDL) Managing Director Kuldeep Arya, and other senior state government officials.

The hotel will spread across approximately 2.6 lakh sq. ft. of built-up area, including two basement levels, and will rise to approximately 65 metres. Its facilities will include a restaurant, banquet hall, pre-function area, business meeting facilities, swimming pool, gym, café and lounge.

The banquet and pre-function spaces, along with an outdoor lawn, will accommodate approximately 500 people. These facilities are expected to position the hotel for business meetings, conferences and social events, complementing its accommodation and leisure offerings.

Speaking on the occasion, Gopal Goswami, Chairman of GAP Group, said, “Dholera is entering an important phase of development, with several ongoing and upcoming industrial projects creating new opportunities. As business activity grows, there will be a greater need for hospitality facilities to serve investors, business travellers and other visitors. Hyatt Place Dholera is an important step in meeting this need, and we believe it will support the region’s growth in the years ahead.”

Ambrish Parajiya, Managing Director of GAP Group, said, “GAP Group has been part of Dholera’s development journey since commencing operations in 2014. As the first private developer to begin development in the Dholera Activation Zone, we have witnessed the region’s progress over the past decade. We believe that Dholera’s next phase of growth will require infrastructure that supports not only industry and commerce but also the people who will live, work and do business here. Hyatt Place Dholera is an important step in that direction. We remain confident in the region’s potential and plan to invest ₹2,500 crore in Dholera by 2030 across residential, commercial and industrial developments.”

Located along the Delhi-Mumbai Industrial Corridor (DMIC), Dholera SIR is being developed as a smart industrial city with planned infrastructure and multimodal connectivity. The Ahmedabad-Dholera Expressway and the proposed international airport are expected to improve access to the region as industrial and commercial activity expands.

As Dholera continues to develop, the demand for hospitality facilities is expected to grow alongside its industrial and commercial infrastructure. Hyatt Place Dholera aims to address this demand by bringing together accommodation, meeting spaces, dining and leisure facilities under one roof.

For GAP Group, the project forms part of its wider development plans for Dholera, complementing its residential, commercial and industrial investments. The hotel is expected to support the region's growing business travel needs while offering facilities for visitors attending meetings, conferences and social events.


IHCL Reports 21% Revenue Growth in Q2 FY2027, Raises Full-Year Guidance

IHCL Reports 21% Revenue Growth in Q2 FY2027, Raises Full-Year Guidance

By Hariharan U

Published on October 23, 2026

The Indian Hotels Company Limited (IHCL) has reported its 18th consecutive record quarter, with consolidated revenue rising 21% year-on-year to ₹2,566 crore in Q2 FY2027. The company has also upgraded its full-year revenue growth guidance to 15–17%, supported by strong hotel performance, higher management fees and portfolio expansion.

For the quarter ended 30 September 2026, IHCL recorded EBITDA of ₹788 crore, with a margin of 30.7%, while profit after tax (PAT) increased 23% to ₹349 crore. Operating revenue grew 22%, while operating EBITDA rose 24%, accompanied by a 50-basis-point expansion in operating EBITDA margin.

The performance reflects growth across IHCL's operating portfolio, supported by higher revenue per available room (RevPAR), new hotel openings and contributions from recent acquisitions.

Domestic Demand and Portfolio Growth Drive Performance

Domestic same-store hotels recorded 25% growth in RevPAR, while management fee income also increased 25%, supported by the momentum of new hotel openings. IHCL's Select Service business reported 25% revenue growth, while recent acquisitions, including Brij and Atmantan, added to the quarter's performance.

Demand from social celebrations and meetings, incentives, conferences and exhibitions (MICE) also remains an important growth driver for the hospitality sector. With seasonally stronger quarters ahead, IHCL expects continued support from domestic travel demand, events and business generated by newly opened properties.

FY2027 Revenue Guidance Upgraded

Building on its first-half performance, IHCL has raised its consolidated revenue growth guidance for FY2027 from 12–14% to 15–17%. The company expects its hotel segment revenue to grow by 17–19%, supported by demand trends and non-like-for-like growth from new properties and portfolio additions.

The upgraded guidance signals management's confidence in sustaining growth through the remainder of the financial year. It also reflects the contribution expected from hotels added to the portfolio, alongside continued performance from existing properties.

Portfolio Reaches 670 Hotels

IHCL signed 47 hotel deals during the first half of FY2027 across its brand portfolio, taking its overall portfolio to 670 hotels. The company said it is now positioned to achieve its Accelerate 2030 target of a 700-hotel portfolio well ahead of schedule.

The expansion reflects IHCL's strategy of growing through a diversified brandscape and a mix of operating models. New signings and openings can strengthen its geographic reach and management fee income, while the performance of existing hotels remains central to revenue and margin delivery.

IHCL's latest results underline the importance of combining same-store hotel growth with expansion across brands and markets. With its full-year guidance upgraded and the portfolio nearing the 700-hotel milestone, the company is entering the second half of FY2027 with a stronger growth outlook.

Key Q2 FY2027 Highlights

  • Consolidated revenue: ₹2,566 crore, up 21%

  • EBITDA: ₹788 crore, up 21%

  • EBITDA margin: 30.7%

  • Profit after tax: ₹349 crore, up 23%

  • Operating revenue growth: 22%

  • Operating EBITDA growth: 24%

  • Domestic same-store RevPAR growth: 25%

  • First-half signings: 47 hotels

  • Total portfolio: 670 hotels

  • Revised FY2027 consolidated revenue growth guidance: 15–17%

  • FY2027 hotel segment revenue growth guidance: 17–19%

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