Union Budget 2026: What Hospitality and F&B Leaders Are Saying

Union Budget 2026: What Hospitality and F&B Leaders Are Saying

By Hariharan U

Published on February 3, 2026

As expectations around Union Budget 2026 give way to industry analysis, voices from hospitality, food services, QSR and alco-beverage sectors are largely aligned on one message: talent development, destination-led tourism and access to long-term capital are welcome moves, but structural reforms remain a work in progress.

Pranav Rungta, Co-Founder & Director, Nksha Restaurant and Vice President, NRAI Mumbai, called the Budget a constructive step for hospitality while highlighting lingering gaps for restaurants.

"Budget 2026 is a positive step for India's hospitality sector. Announcements like the first-ever National Institute of Hospitality and structured skill development for tourist guides will strengthen service standards and prepare our workforce to meet growing domestic and international demand.At the same time, restaurants continue to face structural challenges such as GST on commercial leases, access to export incentives like SEIS and easier SME support. Addressing these challenges alongside rising tourism and dining demand is key to building a resilient, sustainable and globally competitive hospitality sector"

From the experience-led hospitality and brewing space, Teja Chekuri, Managing Partner – Ironhill, emphasised the Budget’s focus on people, destinations and capital as a meaningful combination.

"What stood out for me in today's Budget is the clear recognition that hospitality growth depends as much on people as it does on places. The focus on structured skill development programmes directly addresses one of the industry's most persistent challenges of finding and retaining trained talent across brewing, service, and operations.

Equally significant is the decision to develop the top 50 tourist destinations in a challenge mode, while bringing hotels in these locations under the harmonised master list. Easier access to long-term, lower-cost financing is a real unlock for hospitality and alcobev brands looking to expand responsibly.

For companies like ours, operating at the intersection of craft beer, dining, and experience-led hospitality, this creates the right conditions to scale with better talent on the floor, stronger destinations to grow into, and capital that supports quality, not shortcuts. If executed well, these measures can meaningfully elevate India's hospitality ecosystem and its global appeal."

Speaking from a food entrepreneurship lens, Pranavi Chekuri, FullStack Ventures & Co-Founder, Bhojanam, highlighted the Budget’s connection between agriculture, skills and hospitality retail.

"As a founder, building a hospitality retail brand rooted in traditional food and native grains, this Budget feels deeply personal. The government's focus on strengthening native crops from coconut, cashew, and cocoa to horticulture and region-specific produce, directly impacts farmers, and in turn, brands like ours that depend on resilient, local value chains. When farmers earn better and produce improves in quality and consistency, it elevates the entire food ecosystem.

Equally encouraging is the emphasis on upskilling across hospitality. Upgrading national institutions, strengthening apprenticeships, and targeted training programmes will help create a workforce that is more industry-ready and confident. For emerging brands, this is critical and not just for smoother operations, but for thoughtful expansion.

Taken together, these measures connect the soil to the storefront. They create opportunities to scale responsibly, generate jobs, and build food brands that are proudly Indian, sustainable by design, and globally relevant in ambition."

For emerging café and food brands, Meenakshi Kumarr, Chef & Founder of Anahata Cafe (Formerly Roots Cafe), pointed to inclusion, skilling and SME funding as strong signals.

"The Budget's focus on strengthening the hospitality and food & beverages ecosystem is a welcome step for emerging brands like Anahata Café. Upgrading the National Council for Hotel Management into a National Institute of Hospitality will help create a stronger talent pipeline by aligning academia with industry needs something the F&B sector has long required. The Divyangjan Kaushal Yojana is especially encouraging, as hospitality and food processing offer meaningful, task-oriented roles that can enable dignified and inclusive employment when supported by customised training. Additionally, the creation of a ₹10,000 crore SME Growth Fund, along with the Self-Reliant India Fund, will help to nurture SMEs. For women-led F&B and FMCG startups, access to equity capital and risk funding is critical to scaling operations and building resilient supply chains."

From the alco-beverage industry, Vidhatha Annamaneni, Co-Founder, Ironhill, viewed the Budget as a signal of gradual but inevitable competition.

"From the alcobev industry perspective, this Budget reinforces a reality the industry understands well that structural reform in alcohol will continue to be gradual, not dramatic. Keeping alcoholic liquor outside GST maintains the status quo, but the real signal lies elsewhere. The India–EU FTA and phased tariff reductions across spirits, wine, and beer point to a more competitive, globally aligned market over the next decade.

For Indian brands, this is both an opportunity and a wake-up call. Lower duties will raise the bar on quality, consistency, and brand-building, especially as premiumisation accelerates. The proposed reduction in TCS on alcohol sellers is also a practical relief, easing working capital pressures across the value chain.

What the industry needs next is predictability with rationalised customs structures and faster resolution of legacy disputes. As India's alcobev market scales toward ₹5.3 lakh crore, the winners will be brands that think long-term, invest in craft and compliance, and compete confidently on a global stage, not a protected one."

Looking at quick-service restaurants and mass expansion, Aayush Madhusudan Agrawal, Founder and Director, Lenexis Foodworks, highlighted the importance of infrastructure and tiered growth.

The Union Budget 2026 reflects a strong commitment to sustainable growth, infrastructure-led development, and ease of doing business. For the QSR industry, the focus on Tier 2 and Tier 3 cities, logistics efficiency, and skilling creates a powerful foundation for the next phase of expansion. At Lenexis Foodworks, we see this as an opportunity to deepen our presence, strengthen our supply chains, and deliver greater value to consumers across India.”

Collectively, the responses reflect cautious optimism across hospitality and allied sectors. While skill development, tourism infrastructure and financing reforms are widely welcomed, industry leaders agree that GST rationalisation, regulatory clarity and predictable policy frameworks will be critical to sustaining long-term growth.


Sterling Expands Kumaon Circuit with Sterling Lake View Sattal

Sterling Expands Kumaon Circuit with Sterling Lake View Sattal

By Manu Vardhan Kannan

Published on August 29, 2026

Sterling Holiday Resorts has expanded its presence in Uttarakhand with the launch of Sterling Lake View Sattal, adding another destination to its growing Kumaon circuit.  The new 24-room resort brings Sterling's portfolio to 12 resorts in Uttarakhand and 80 resorts across India. Located close to Sattal Lake, the property is set within the quieter lake-and-forest landscape of Kumaon.

Sattal is known for its cluster of seven freshwater lakes, surrounded by forested hills and rich biodiversity. The destination is also popular for its birdlife and offers a slower and more peaceful travel experience compared with some of the region's better-known hill destinations.

Designed around its surroundings, Sterling Lake View Sattal features lake-facing rooms and an intimate setting suited to families, couples and nature enthusiasts. Guests can explore the area through birdwatching, forest walks and other outdoor experiences connected to the landscape.

The resort's location also makes it a convenient base for exploring Bhimtal, Nainital, Kainchi Dham and Naukuchiatal, allowing travellers to discover several parts of the Kumaon region from one stay.

Building a Connected Kumaon Circuit

The Sattal launch reflects Sterling's Destination Architect philosophy, which focuses on understanding what makes each destination special and developing experiences around it, rather than simply adding individual properties.

Speaking on the launch, Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts, said:

"We increasingly look at expansion through the lens of a Destination Architect. The question is not simply where we can add another hotel, but what is distinctive about a destination, what experiences can be built around it, and how it connects with the larger journeys of our guests.

Sattal is a good example. Its seven lakes, forests and rich biodiversity give it an identity quite different from the more established hill destinations of Kumaon. Sterling Lake View Sattal allows us to bring that character alive through nature, birding and slower travel, while connecting it naturally with Bhimtal, Nainital, Kainchi Dham and the wider Kumaon region.

A resort gives us presence in a destination; a connected circuit gives us relevance across a region. Our ambition is to keep connecting established destinations with emerging micro-markets and give travellers more compelling ways to discover India."

Sterling's network in Uttarakhand already covers destinations linked to mountains, forests, wildlife, rivers, wellness, pilgrimage, adventure and lakes. With Sattal, the company adds another lake-and-forest destination to this network.

The wider Kumaon circuit brings together the hill appeal of Nainital, the lakes of Bhimtal, Sattal and Naukuchiatal, the spiritual importance of Kainchi Dham and the surrounding forests and mountain landscapes.

A Stay Built Around Sattal

Sterling's approach at the property is centred on making the destination itself an important part of the guest experience. Its lakes, forests, birdlife, local culture and slower pace form the backdrop for the stay.

Guests can take part in nature-led experiences around the resort, while Sattal Bistro, the in-house restaurant, adds to the experience with Sterling's signature warmth and hospitality.

Commenting on the association, Abhijit Agrawal, Partner, Arthouse Hotels LLP, said:

"Sattal has retained a sense of tranquillity that is increasingly rare in the more established hill destinations, and that is precisely what we wanted this resort to preserve. Our association with Sterling brings together the property's unique lake-side setting with the reach and operating expertise of an established hospitality brand. We believe this partnership will help introduce more travellers to Sattal while building the resort as a distinctive nature-led stay in the Kumaon region."

The launch of Sterling Lake View Sattal marks another step in the company's expansion strategy, moving from individual properties towards a network of connected destinations that can offer travellers more ways to explore a region.


8fold by LaRiSa Launches New Hotel on Amritsar Heritage Walk

8fold by LaRiSa Launches New Hotel on Amritsar Heritage Walk

By Manu Vardhan Kannan

Published on August 28, 2026

LaRiSa Hotels & Resorts has announced the launch of 8fold by LaRiSa, Amritsar Heritage Walk, marking the 8fold brand’s first hotel in Punjab. The new property brings the brand’s approach of mindful and uncomplicated hospitality to one of Amritsar’s most well-known heritage areas.

The hotel is located within Amritsar’s Heritage Walk precinct, placing guests along the same lanes that generations of pilgrims have travelled while visiting the Golden Temple. The property is also within walking distance of the Golden Temple, Jallianwala Bagh, the market lanes and the Partition Museum.

8fold by LaRiSa, Shimla has been welcoming travellers in North India for nine years. With its Amritsar opening, the brand now welcomes guests visiting Punjab and adds another destination to its growing presence.

Designed for families and groups travelling together, the hotel offers room categories suited to different travel needs. Its in-house restaurant takes inspiration from Amritsar’s food culture, with kulcha at the centre of a menu built around the city’s local flavours.

The idea behind the property is simple, to give travellers a comfortable place to return to after exploring the city on foot and a convenient base to begin again the next morning.

“Amritsar has always meant something to travellers, long before hotels even came into the picture; people have been walking these same lanes to the Golden Temple for generations. With 8fold, we wanted a stay that respects that rhythm rather than getting in its way: somewhere simple to return to at the end of the day”, Priya Thakur, Founder & Director, LaRiSa Hotels and Resorts

8fold Locations:

  • Shimla: 8fold by LaRiSa, Shimla

  • Jibhi: 8fold by LaRiSa, Jibhi

  • Bhimtal: 8fold-Pinecrest by LaRiSa, Bhimtal

  • Goa: 8fold by LaRiSa, Siolim

  • Uttar Pradesh: 8fold by LaRiSa, Basti 

With the launch of 8fold by LaRiSa, Amritsar Heritage Walk, LaRiSa continues to expand its presence across North India while keeping its focus on simple, comfortable and location-led stays.


Cygnett Expands Cozzet into Odisha with 50-Room Gopalpur Beach Hotel

Cygnett Expands Cozzet into Odisha with 50-Room Gopalpur Beach Hotel

By Manu Vardhan Kannan

Published on August 27, 2026

Cygnett Hotels & Resorts is expanding its presence in Odisha with the signing of Cozzet VICASA Gopalpur, a 50-room brownfield hotel located around 800 metres from Gopalpur Sea Beach. The property is scheduled to open in March 2027, with several rooms offering sea views.

The signing supports Cygnett’s plans to grow through brownfield conversions and asset-light management opportunities across Tier II, Tier III and emerging micro-markets. The move comes as domestic travel continues to grow and more travellers look for professionally managed accommodation beyond major cities.

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According to HVS ANAROCK's India Hospitality Industry Overview 2025, Tier III and IV markets accounted for 44% of hotel keys signed and 55% of properties signed during 2025, highlighting the growing role of emerging destinations in India’s hospitality sector.

Located along Odisha’s southern coastline, Gopalpur is developing as a coastal leisure destination, combining beach tourism and weekend travel with access to the region’s natural and cultural attractions. The upcoming hotel is expected to cater to leisure travellers, families, weekend guests, weddings and small corporate groups.

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Commenting on the signing, Mr. Sarbendra Sarkar, Founder & Managing Director, Cygnett Hotels & Resorts, said, “India's hospitality growth is increasingly being driven by emerging cities, pilgrimage centres and leisure micro-markets. Gopalpur fits strongly into this strategy. Through brownfield conversions such as Cozzet Vicasa Gopalpur, we can bring quality existing assets into a professional brand, distribution and operating ecosystem while creating long-term value for hotel owners.”

A Contemporary Coastal Stay

Cozzet VICASA Gopalpur will feature 50 guest rooms, including sea-view rooms, along with approximately 2,500 sq. ft. of banquet and event space that can accommodate around 180–200 guests. The hotel will also feature a rooftop restaurant serving regional delicacies and global cuisine in a relaxed coastal setting, adding to its appeal for both leisure and social gatherings.

Cozzet’s Smart, Safe & Sensible Approach

Positioned in the value-driven hospitality segment, Cozzet by Cygnett follows its “Smart, Safe & Sensible” hospitality philosophy. The brand focuses on clean and comfortable rooms, modern amenities and dependable service at an accessible price point.

With branded economy accommodation still having relatively low penetration across India, Cygnett sees considerable potential for organised hotel brands in emerging cities and destinations. Cozzet by Cygnett currently has a development pipeline of more than 600 keys, with hotels at different stages of development and pre-opening across destinations including Noida, Ayodhya, Amritsar, Jaipur and Arunachal Pradesh.

The Gopalpur signing further strengthens Cygnett’s plans to build a scalable network across regional business centres, pilgrimage destinations, coastal leisure markets and other emerging micro-markets where demand for quality branded accommodation continues to grow.

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