Dear Dinesh ji,
This discussion made me to study deeply on the subject.
I remember reading that hotel industry is included under the Factory Act, however, there is no notification or amendment in the Act so far.
There is a specific exemption under the Factories Act 1948, under Section 2(m) to exclude Hotel from the applicability of that Act. Therefore, provisions of Factory Act do not apply to Hotels & Restaurants.
However, under the ESI Act, Hotels and Restaurants are considered as factory. Hon’ble Supreme Court, in the Civil Apeal No.1144-45 and 1147 - 1149 of 1952 and W.P.(c) was 9728 – 29 of 1983, has held that a hotel is a factory, as per the definition of the term under Section 2(12) of the Employees State Insurance Act, 1948. This definition of the term “factory” is the same as under Section 2(k) of the Factories Act 1948.