EIH, Indian Hotels and Lemon Tree Back Infrastructure Status Push for Hotels in 2026 Budget
Leading Indian hotel groups, including EIH, Indian Hotels and Lemon Tree, seek infrastructure status in the 2026 Budget to boost investment and growth.
Munni Khatun 
Several prominent Indian hotel companies have publicly voiced support for granting infrastructure status to the hospitality sector ahead of the Union Budget 2026, underscoring the industry’s push for policy support to accelerate investment and competitiveness.
Leaders from EIH Ltd, Indian Hotels Company (IHCL) and Lemon Tree Hotels argue that classifying hotel projects as infrastructure assets would unlock long-term financing, reduce borrowing costs and attract increased institutional capital into the sector.
The proposal comes against a backdrop of sustained growth in travel demand across domestic and inbound markets, with hospitality operators seeking structural enablers to scale operations, expand capacity and upgrade facilities to global standards.
Proponents say that infrastructure status could address challenges such as high working capital requirements, uneven supply of long-tenor credit and intense competition for land and resources in key urban and tourism corridors.
Executives backing the move have highlighted that hotels not only support tourism and business travel but also generate substantial employment, contribute to foreign exchange earnings and catalyse economic activity in regional hubs and secondary cities.
The industry’s expectations for the 2026 Budget reflect a broader strategic narrative in which hospitality is seen as integral to national growth, tourism promotion and urban development. Allocating infrastructure status to hotels would align the sector with other serviced asset classes that benefit from policy incentives and dedicated financing windows.
Analysts note that if adopted, this policy measure could spur accelerated hotel development in under-served leisure and business markets, while boosting investor confidence in upcoming supply pipelines.
As the government consults with industry stakeholders ahead of Budget announcements, hotel associations and corporate leadership teams are intensifying advocacy efforts to ensure that the sector’s capital and credit needs are reflected in fiscal incentives and regulatory frameworks.
The hospitality industry’s push for infrastructure status in Budget 2026 represents a significant policy conversation that could shape investment patterns, credit flows and long-term growth dynamics for Indian hotels.
