Union Budget 2025: A Game-Changer for India's Hospitality Sector

Union Budget 2025: A Game-Changer for India's Hospitality Sector

By Nishang Narayan

Published on February 4, 2025

The Union Budget 2025 has set the stage for significant transformation in India's hospitality and tourism sector. With a strong emphasis on infrastructure, connectivity, and investment-driven growth, industry leaders believe these measures will bring long-term benefits, attracting both domestic and international travelers.

One of the key highlights is the modified Udaan scheme, which will introduce 120 new destinations, strengthening regional connectivity and boosting tourism in emerging hotspots. Hotels, resorts, and homestays in lesser-explored regions are expected to see an increase in footfall, fostering further development and investment.

Ambika Saxena, CEO of TWH Hospitality, emphasized how the expanded Udaan scheme will open doors for new destinations, benefiting hotels and resorts. She stated:

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"This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government's push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travelers in emerging tourism hotspots."

The expansion of tourism-friendly policies is another key highlight, with a focus on domestic and spiritual tourism. Measures such as streamlined e-visa facilities, visa fee waivers, and performance-linked incentives for states will improve tourist amenities and cleanliness, ultimately enhancing the travel experience.

Yogesh Mudras, Managing Director of Informa Markets in India, sees this as a landmark initiative for India's tourism industry:

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"The Union Budget 2025 presented a progressive roadmap that prioritizes infrastructure, economic growth, and regional connectivity. The government's continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India's position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travelers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry."

The government has also placed a strong focus on homestays and small-scale tourism businesses by introducing Mudra loans to empower local entrepreneurs. This move is expected to encourage more people to invest in the hospitality space, promoting sustainable and community-driven tourism.

Pranav Dangi, Founder and CEO of The Hosteller, believes these steps will help India emerge as a top global destination:

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"The Union Budget 2025 presents a robust vision for India's tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry's foundation. Additionally, developing 50 tourist destinations will definitely enhance India's position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel, setting the stage for India to emerge as a top global destination."

Another critical aspect of the budget is skill development and workforce training in hospitality. The government aims to provide intensive training programs through Institutes of Hospitality Management, ensuring world-class education and better employment opportunities in the sector.

Saurabh Gahoi, Senior Vice President of Ramee Group of Hotels, sees this as a transformative step for the industry:

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"The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India's hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman's budget is a game-changer, strengthening India's position as a premier travel and hospitality hub."

Conclusion

With infrastructure development, connectivity expansion, and workforce training at its core, the Union Budget 2025 is a major step forward for India's hospitality and tourism industry. By enhancing accessibility, supporting small businesses, and improving the ease of travel, the government has laid the foundation for a vibrant, competitive, and globally recognized tourism sector. These policies are expected to create new business opportunities, attract investments, and establish India as a premier travel destination in the years to come.


Papa Johns India Celebrates Father’s Day with Interactive Pizza-Making Experience

Papa Johns India Celebrates Father’s Day with Interactive Pizza-Making Experience

By Hariharan U

Published on June 21, 2026

Papa Johns India marked Father’s Day with a unique and interactive celebration, hosting a special pizza-making experience for fathers and their children at its Hennur and Kasturi Nagar outlets in Bengaluru on June 21, 2026.

Designed to encourage meaningful family bonding, the event brought together registered father-child duos for a hands-on culinary session where participants created their own pizzas under the guidance of Papa Johns chefs. The initiative aimed to transform a traditional dining experience into an engaging activity centred around togetherness and shared memories.

During the event, participants wore branded aprons and caps while learning the art of pizza-making from scratch. The experience also featured Father’s Day-themed games, instant photography sessions, Polaroid keepsakes, and interactive activities designed to make the celebration memorable for families.

Commenting on the initiative, Prashant Mehta, Director of Papa Johns India, said the brand views Father’s Day as an opportunity to celebrate family connections and create meaningful experiences beyond dining. He noted that the event was designed to bring families together through teamwork, creativity, and shared moments in the kitchen.

The sessions concluded with pizza tasting, trivia activities, and group photographs, allowing participants to enjoy the creations they made together.

Through this experience-led activation, Papa Johns India continues to strengthen customer engagement while showcasing the craftsmanship, quality ingredients, and preparation techniques that define its pizzas. The initiative reflects the brand’s growing focus on creating memorable in-store experiences that connect customers with the food and the people they share it with.

Operated in India by PJP Foods India Private Limited under the Ambrosia QSR platform, Papa Johns India continues to expand its presence through dine-in, takeaway, and delivery formats while staying true to its global promise of “Better Ingredients. Better Pizza.”


Summit Hotels Begins FY2026-27 with Nearly 40% Growth, Driven by Sikkim and Darjeeling Demand

Summit Hotels Begins FY2026-27 with Nearly 40% Growth, Driven by Sikkim and Darjeeling Demand

By Manu Vardhan Kannan

Published on June 14, 2026

Summit Hotels & Resorts has started FY2026-27 on a strong note, reporting nearly 40% growth in business during April and May. The company attributes the performance to continued demand for leisure travel in the Eastern Himalayas and the growing preference among travellers for established regional hospitality brands.

During the first two months of the financial year, the hospitality group sold more than 37,000 room nights, with occupancy across its portfolio reaching 78.9%. Average room rates also crossed ₹6,000, highlighting stronger pricing power across several key destinations.

The growth comes despite a temporary slowdown in travel activity in parts of eastern India during the West Bengal Assembly election period. According to the company, destinations across Sikkim and the Darjeeling Hills were the strongest contributors to performance, supported by repeat guests and rising demand for premium mountain getaways.

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Commenting on the performance, Sumit Mitruka, CEO, Summit Hotels & Resorts, said, "We entered the year expecting healthy demand, but the pace of bookings has been stronger than anticipated. What stands out is not just the occupancy but the ability of travellers to continue choosing these destinations despite temporary disruptions. The appetite for experiential leisure travel remains strong, and we are seeing that translate into both room revenue and higher spending within our hotels."

Alongside room revenues, the company also reported healthy growth in food and beverage sales during the period. Guest review scores remained among the highest across its operating markets, reflecting strong customer satisfaction levels.

Building on this momentum, Summit Hotels is now expanding its business model beyond its owned and managed properties in the Eastern Himalayas. The company is actively seeking partnerships with independent hotels, boutique resorts, heritage properties, wildlife lodges, and spiritual retreat destinations across India.

The initiative is designed for hotel owners looking to benefit from organised distribution channels and professional revenue management while retaining ownership and operational control of their properties.

Unlike conventional affiliation models that often require significant upfront investments, Summit's partnership approach focuses on shared growth. Partner properties can maintain their individual identity while gaining access to the company's central reservation system, revenue management expertise, digital marketing support, technology platforms, and hospitality manpower network.

Having completed 18 years in the hospitality industry, Summit believes significant opportunities exist within India's large independent hotel sector, where many properties have strong local appeal but limited access to organised brand support and distribution systems.

With booking momentum continuing into June and advance reservations already nearing last year's levels, the company remains optimistic about sustained demand across leisure and destination travel markets in the coming quarters.


Suba Hotels Ltd Reports Record ₹115.89 Cr Revenue in FY26, Expands to 100+ Hotels

Suba Hotels Ltd Reports Record ₹115.89 Cr Revenue in FY26, Expands to 100+ Hotels

By Hariharan U

Published on June 12, 2026

Suba Hotels Limited (NSE – SME: SUBAHOTELS) has announced its audited financial results for the year ended March 31, 2026, reporting its strongest-ever annual performance alongside significant expansion across its hotel portfolio.

The company’s total revenue rose to ₹115.89 crore in FY26, marking a 45% year-on-year growth. EBITDA increased by 13% to ₹26.82 crore, while Profit After Tax (PAT) stood at ₹18.01 crore, reflecting a 19% rise compared to FY25.

Commenting on the performance, Managing Director Mansur Mehta said FY26 has been a landmark year for the company, driven by strong execution and expansion across markets. Suba Hotels expanded its presence to over 102 operational hotels, 4,660+ keys, and 73 destinations during the year.

He highlighted that one of the company’s key strengths lies in its ability to operate across all five hospitality business models management contracts, revenue sharing, franchising, asset ownership, and hybrid structures, making Suba Hotels one of the few hospitality players in India with such a diversified operational framework.

This flexibility allows us to partner with hotel owners effectively and accelerate expansion across segments,” he said.

CEO Mubeen Mehta noted that the scale achieved in FY26 reflects the strength of the company’s operating platform and execution capabilities. He added that revenue growth was supported by network expansion and improved business volumes across brands.

He also pointed out that EBITDA and PAT margins were impacted due to changes in the GST framework, which led to the loss of input tax credit benefits on certain operating expenses, increasing the overall cost base.

Looking ahead, the company plans to continue expanding through asset-light models, improving operational efficiency, and strengthening its presence in high-growth markets. With a strong pipeline and over 100 hotels already operational, Suba Hotels remains confident of sustaining its growth trajectory.

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