New Delhi, August 20, 2026: India’s hospitality sector is set to see significant regulatory changes as Delhi and UP take steps to update their bed and breakfast scheme and homestay rules, respectively. The changes are likely to have implications for homeowners, hotels, and other hospitality businesses that cater to the need for B&B accommodations.
Delhi has decided to repeal its own 17-year-old Bed & Breakfast Act and is currently working on a new law that would introduce updated safety regulations, flexible categorization, and enhanced compliance procedures. On the other hand, UP has amended its homestay and B&B policy to allow urban homestays to operate with a maximum of 8 rooms and 16 beds.
Delhi Moves to Modernise B&B Regulations
The Delhi Legislative Assembly has approved the Delhi Bed and Breakfast Establishments (Repeal) Bill, 2026, thereby initiating the process to repeal the existing regulations governing B&Bs in Delhi, the Delhi Bed and Breakfast Establishments Act, 2007.
The proposed framework contemplates introducing updated categories of B&Bs, including Silver and Gold, along with the draft provisions suggesting the limitation of accommodations to 8 rooms and 16 beds, plus specific standards for CCTV surveillance in common areas, residential compliance, and safety requirements.
The transition is especially pertinent for property owners seeking a bed and breakfast license Delhi, as the registration and compliance procedures may be altered under the new framework once officially notification.
Uttar Pradesh Expands B&B and Homestay Capacity
Uttar Pradesh has also revamped its homestay and B&B policy to give more flexibility to the operators. As per the new norms, any urban homestay/ B&B can have up to 8 rooms and 16 beds.
The state has also launched an auto-renewal online facility to make the process of renewal easier for the operators. Other changes in the policy relate to residential utility, tax, and caretaker norms if the owner stays away from the rented premises.
What These Changes Mean for B&B Operators
The newest trends suggest a growing interest in modernised tourism regulations, digital compliance and enhanced safety standards.
Those who intend to acquire a bed and breakfast licence should review the relevant requirements imposed by the state and local authorities prior to opening. Depending on the jurisdiction, they may pertain to property documents, number of offered rooms, fire safety, sanitary norms, visitor register and other conditions.
National Bed & Breakfast Framework
At the national level, the Ministry of Tourism proposes Incredible India Bed & Breakfast for eligible accommodation establishments. In this regard, the central government develops guidelines concerning tourist classification; however, local authorities can introduce specific requirements for bed and breakfast accommodation.
Therefore, since legal regulations concerning B&B accreditation can vary significantly at different administrative levels, it is essential to clarify whether the central classification system, local bed and breakfast program, or additional permits apply to the particular facility.
Growing Importance of B&B Compliance
The policy changes in Delhi and Uttar Pradesh make it clear that the regulation of accommodation business is necessary for ensuring that operators run their services in accordance with the latest rules and regulations. Updated licensing, safety, and registration requirements contribute to creating legitimate and reliable businesses and offer guests peace of mind.
Therefore, homeowners and hospitality managers, who want to open their bed and breakfast, should review the current list of necessary permits and regulations to gain an understanding of the requirements needed before actually welcoming their first guests.
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