The hotel industry today demanded that the government should provide the budget hotels below Rs 100 crore as infrastructure status, so that they can avail cheaper loans and incentives. 

The Federation of Hotel & Restaurant Associations of India (FHRAI) said that the real growth drivers of industry are the small one star and two star budget hotels, which have a development cost starting from Rs 25 crore. 

"Unless we have cheaper finances for the cost of land and infrastructure for these hotels, then they would not grow and if we do not help them out, these hotels would not qualify for at least the five per cent if the development taking place," said FHRAI President S M Shervani. 

"It is very difficult to understand that a 300 deluxe room hotel is an infrastructure and why 80 to 100 room 2 star hotel is not an infrastructure. They should get the same benefits," he said during the launch of FHRAI's Indian hotel industry survey report of 2012-13. 

According to the report, the Indian hotels has an average occupancy rate of 60.4 per cent during 2012-12, which is slightly lower than 2008-09, which was 63.1 per cent6t. 

Moreover, share of revenue from room occupancy has gone down to 52.2 per cent in 2012-12, while it was 60.5 per cent in 2008-09. 

Contribution of Food and Beverage section has increased to 29 per cent in 2012-12 as against 25.6 per cent in 2008-09. Similarly revenue from banquet and conferences has also gone up to 12.2 per cent from 8.8 per cent from 2008-09 to 2012-13.

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