The Uttar Pradesh government has rolled out the Bed and Breakfast and Homestay Policy 2025, a major initiative aimed at formalizing and regulating guest accommodations operating from residential buildings. The new policy mandates that all existing BnBs and homestays register with the state by June 9, 2026, to continue operations legally and access various government incentives.
Until now, many such establishments functioned informally through online platforms without state oversight. The new framework seeks to streamline the sector, boost tourism infrastructure, and support homeowners in earning additional income.
"This is an excellent opportunity for residents to rent out part of their homes to tourists. It generates income while providing government support in the form of concessions, training, and promotional visibility," said Suresh Rawat, District Tourism Officer for Noida and Ghaziabad.
Key Provisions
The policy clearly distinguishes between homestays and BnBs. Homestays are defined as residences where the owner lives on-site and offers up to six rooms (maximum 12 beds). BnBs are properties where the owner does not stay but must employ a caretaker on the premises.
Once registered, owners will benefit from residential utility rates for water, electricity, house, and sewer taxes, instead of commercial rates. They will also qualify for solar panel subsidies under the Pradhan Mantri Surya Ghar Muft Bijli Yojana, free skill training for up to eight staff members, and promotion through the state tourism portal.
Only legal property owners can apply — leased or rented spaces are not eligible. Each property can register a maximum of six rooms or 12 beds, with one caretaker's room allowed in BnBs. Properties must meet basic standards such as reliable electricity, water supply, toilets, and furniture.
Applications will be processed online, and registration can be approved within a month following a site inspection. Oversight will be conducted by a district-level committee headed by the district magistrate and including officials from police, fire, tax, and tourism departments.
Classification and Fees
Registered units will be graded as Silver or Gold based on amenities. Silver units require rooms of at least 120 sq. ft., while Gold units must offer 200 sq. ft. rooms with air conditioning, TV, refrigerator, and attached bathrooms with geysers. Registration fees are set at Rs 2,000 for Silver and Rs 3,000 for Gold. Rural homestays and dormitories will pay only Rs 100. All units must install CCTV cameras and store footage for 90 days.
Industry Response
Hospitality industry representatives welcomed the policy. Vishesh Tyagi, president of the Paying Guest House Owners' Welfare Association of Noida, said it could "unlock more accommodation options and benefit both property owners and visitors."
Officials noted that the move is particularly significant for Noida and Ghaziabad, where demand for short-term accommodation spikes during trade shows and large events. With hotels often reaching full capacity during major exhibitions, the policy is expected to ease pressure on existing infrastructure while creating new income streams for residents.
The Homestay Policy 2025 marks a strategic step by the UP government to formalize and expand the state's hospitality ecosystem, aligning with its broader push to boost tourism and attract domestic and international visitors.
