Delhi may lose many 5-star hotels: HRANI

HRANI condemns newly introduced composite fee structure in the excise policy of Delhi. The association believes that it will definitely affect the image of Delhi with a reduced number of 5 star hotels as many hotels desire to declassify or get their rating changed to 4 star due to the newly introduced composite fee structure of 1 crore per annum. As per the new excise policy, for hotels up to the two-star classification, the fee is INR 10 lakh, while for three and four-star hotels, it is INR 15 lakh per F&B outlet. While the new L-16 licence (5-star and above) is composite license of INR 1 crore which means a hotel with two outlets and another one having six outlets are being charged the same fees under composite scheme. The Banquets in a hotel have been treated as a separate identity and a separate license (L-38) with a fee levied on the basis of carpet area (Rs 5, 00,000 to Rs 15, 00,000/-) has also been demanded by the excise department. “The proposed composite fee structure is certainly going to affect the hotels with different sizes as units with a limited number of units will find it difficult to recover the cost of the licence. There is a significant hike in licence fee for all categories,” stated Garish Oberoi, Chairman, Delhi State Committee, HRANI. The industry is also not clear on the liquor service and procurement for banquet events as the wedding season is already going on.