Subsidy for Apartment Hotel Projects in Gujarat
🏢 Subsidy for Apartment Hotel Projects in Gujarat
Get 15% Capital Subsidy + Duty Exemptions Under Gujarat Tourism Policy 2021–25
In an era where travelers seek home-like comfort with hotel-like services, Apartment Hotels are emerging as a smart hospitality solution. Recognizing this shift, the Government of Gujarat is offering financial incentives, including a 15% capital subsidy, stamp duty reimbursement, and electricity duty exemption for setting up or expanding apartment hotels under the Tourism Policy 2021–25.
This blog provides a detailed explanation of eligibility, financial benefits, required approvals, and application timelines.
🏨 What is an Apartment Hotel?
An Apartment Hotel is a property offering:
- Accommodation in furnished rooms with kitchenettes or studio apartments
- Services that combine the convenience of home and hotel amenities
- Longer stay options for business travelers, tourists, and relocating families
To qualify for the subsidy, the apartment hotel must:
- Be a new project or 50%+ expansion of an existing unit
- Invest minimum ₹50.00 lakh in capital
- Obtain category certification from the Ministry of Tourism, Government of India
🕒 Policy Applicability
- Policy Validity: 1st January 2021 to 31st December 2025
- Projects must commence partial or full commercial operations during this period
- Only investments made on or after 1st January 2021 are eligible for subsidy
🏛️ Financial Benefits for Apartment Hotels
✅ 1. Capital Subsidy – 15%
| Category | Built-Up Area Rate | Example |
| 5-Star | ₹3,400/sq. ft. | For 50,000 sq. ft. → ₹17.00 Cr |
| 4-Star | ₹2,550/sq. ft. | 50,000 sq. ft. → ₹12.75 Cr |
| 3-Star | ₹2,125/sq. ft. | 50,000 sq. ft. → ₹10.63 Cr |
Subsidy Example (5-Star):
- Built-up Area: 50,000 sq. ft.
- Eligible Investment: ₹17.00 Cr
- 15% Subsidy = ₹2.55 Cr
📝 Subsidy applies only to eligible capital investment. Land cost is excluded.
✅ 2. Electricity Duty Exemption
- 100% exemption from electricity duty for 5 years
- Based on first electricity bill, Tourism Department issues an exemption letter to the electricity board
✅ 3. Stamp Duty & Registration Fee Reimbursement
- 100% reimbursement on stamp duty and registration fees for property or lease documents associated with the project
♻️ Bonus Incentive for Green & Sustainable Certifications
| Certification Type | Financial Assistance |
| IGBC / GRIHA / LEED | 50% of certification cost or ₹10 Lakh (whichever is lower) |
| GSTC Certification | 50% or ₹5 Lakh (whichever is lower) |
🚫 Membership or renewal fees are not eligible.
📢 Market Development Assistance (MDA)
Apartment Hotels registered with the Commissioner of Tourism (CoT) can claim MDA for up to 5 events during the policy period.
| Event Type | Assistance |
| National/International (in Gujarat) | 50% or ₹30,000/event (lower) |
| National (outside Gujarat) | 75% or ₹1.00 Lakh/event (lower) |
| International (within India) | 75% or ₹2.00 Lakh/event (lower) |
| International (Abroad) | 60% of rent (max ₹5.00 Lakh) + ₹40,000 airfare |
📌 Must have prior approval from CoT
📆 Extended Project Completion Timeline
| Investment Range | Completion Deadline |
| Up to ₹100 Cr | Must complete by 31-Dec-2025 |
| ₹101 Cr – ₹250 Cr | Partial ops by 31-Dec-2025, complete in 6 months |
| ₹251 Cr – ₹500 Cr | Partial ops by 31-Dec-2025, complete in 12 months |
| ₹501 Cr+ | Partial ops by 31-Dec-2025, complete in 18 months |
📑 General Conditions
✔️ Project must not be part of a shopping mall or multiplex
✔️ No overlapping benefit from other Gujarat state schemes
✔️ Combined assistance (state + central) must not exceed actual capital investment
✔️ Project must be registered on https://tourism.gujarat.gov.in
🧾 How to Apply
- Prepare DPR: With layout, MoT certification category, budget, and plan
- Register Online: https://tourism.gujarat.gov.in
- Start Implementation: Begin construction or renovation
- Begin Operations: Generate your first commercial bill
- Claim Subsidy: Submit eligible documents and apply for subsidy within the policy timeframe
💼 Case Example – Apartment Hotel in Ahmedabad
| Built-Up Area | 50,000 sq. ft. (5-star) |
| Eligible Investment | ₹17.00 Cr |
| 15% Capital Subsidy | ₹2.55 Cr |
| Stamp Duty & Registration | ₹0.60 Cr |
| Electricity Duty Savings | ₹0.50 Cr (5 years) |
| Green Certification Support | ₹10.00 Lakh |
| MDA (3 events) | ₹2.50 Lakh |
Total Benefit: ₹3.75 – ₹4.00 Cr+
📞 Need Expert Help?
Book your consultation At Adroit Corporation, we help you:
- Prepare your business model and DPR
- Select the right loan structure
- Get the subsidy application right
- Track and follow-up till disbursement
📧 Email us: sales@adroitcorporation.in
📱 Call us: 7203010101 or 8734010101
🌐 Visit: www.adroitcorporation.in
