A parallel hospitality sector operates largely unchecked in residential neighbourhoods across the city as mini hotels in residential units in Lucknow witness rapid growth. Hundreds of these accommodations function without approvals, highlighting the lack of coordinated enforcement.
Officials from the tourism department claim that only around 20 properties in the city have received approval to operate as homestays or B&B units. However, online booking platforms continue to list numerous apartments and residential units for short-term stays in prime localities, including Gomti Nagar Extension, Vibhuti Khand, Sushant Golf City, Indira Nagar, Aliganj and Krishna Nagar.
The rentals, available at rates ranging from ₹1,800 to ₹5,000 per night, are being offered from residential apartments located in private societies and high-rise complexes. An HT visit to online booking platforms revealed multiple listings from a residential complex situated behind the Dial 112 headquarters in Gomti Nagar Extension.
Lucknow Development Authority zonal officer Devansh Trivedi said property owners obtain approval for residential buildings and later use them as short-term rental units because the authority does not have a separate map-approval category for bnb accommodations.
Similarly, Lucknow Municipal Corporation officials acknowledged the absence of a distinct taxation framework. LMC chief tax assessment officer Ashok Singh said the civic body currently collects taxes under categories such as hotels, guest houses and hostels, with no separate classification for bnb properties.
The business has also emerged as a profitable venture for investors and tenants. An operator in Vibhuti Khand told HT that he had taken the property on rent – a one-bedroom kitchen unit flat – for around ₹35,000 per month and offers it online for approximately ₹2,500 per night, with rates increasing to ₹3,000 or more during weekends.
The growing trend has sparked concerns among residents and hotel operators. Hoteliers argue that hotels are required to follow guest verification norms and maintain visitor records, while many short-term rental units function with limited monitoring. They claim that the unrestricted movement of visitors in residential societies often creates security concerns for residents.
A tourism department official, speaking on condition of anonymity, said that none of the high-rise apartments have been given the permission to operate bnb accommodations; they have not even applied to obtain any certificate till date. The official added that the district administration periodically conducts drives against unauthorized operators.
The state cabinet approved the Uttar Pradesh Homestay and Bed & Breakfast Policy 2025 to promote regulated and affordable accommodation for tourists. The policy allows homeowners to register one to six rooms in residential properties after fulfilling prescribed standards.
ADM City M.P. Singh said bnb-style rentals are different from government-recognised bed and breakfast (B&B) as well as homestays. The bnbs largely function as mini hotels. He said property owners can obtain permission to convert flats into B&B units or homestays if they meet the prescribed criteria and provide basic facilities.
Singh said authorities inspect B&B applicants before granting approval. Under the B&B scheme, homeowners provide accommodation and breakfast to tourists and must have at a said criteria of rooms. He added that homestays can even be operated in apartment complexes because the government order does not specify locations where they cannot be opened. In homestays, the host family resides with the guests. The government is actively promoting the homestay model. However, bnbs currently have no specific regulatory framework under the district administration.
Municipal commissioner Gaurav Kumar said the Lucknow Municipal Corporation collects taxes from bnb-style properties under the guest house category because no separate tax provision exists for such rentals. Tourism department officials also confirmed that they maintain records only of government-recognised B&B units and do not regulate privately operated accommodations.
