Hospitality industry booms in Bengaluru as demand, investment and tourism shoot up 

P. C. Rao, president, Bruhat Bengaluru Hoteliers’ Association (BBHA) credited the fast-paced growth of the hospitality industry to multiple industries and opportunities in Bengaluru.

“Every fourth commercial establishment in Bengaluru is some kind of a food joint,” said P. C. Rao, president, Bruhat Bengaluru Hoteliers’ Association (BBHA). Thanks to the growing numbers of industries, tourists and investors in Bengaluru, there has been an exponential expansion of the hospitality industry in 2023. 

From darshinis and ice cream parlours to five-star hotels and fine dining restaurants, the number of hospitality establishments in Bengaluru has increased. “In 2023, around 200 new food establishments (including bakeries, sweet stalls) were opened in Bengaluru. In January 2024, two establishments have opened for business,” Mr. Rao said. “The variety in restaurants here is such that now you can get a cup of coffee from ₹10 per cup to ₹250 per cup. Demand continues to grow,” he added. 

At least 10 big hotels (including star hotels) would be inaugurated in 2024 in Bengaluru. “While a Hyatt is coming up at Hebbal, a Hilton is coming up at Whitefield. We also have an IBC hotel coming up. The Taj hotel at the airport is adding a block with 200 rooms while JW Marriott is planning a new hotel near Devanahalli,” Mr. Rao informed. 

The hotelier credited the fast-paced growth of the hospitality industry to multiple industries and opportunities in Bengaluru.

“We have aerospace, automobile, and electric vehicles industries. We also have numerous start-ups. Along with that, there are multiple regional offices of Central government organisations, defence offices and PSUs, space and science centres, and Research and Development offices leading to several thousands of people coming to Bengaluru every day,” he said.  

One of the major factors contributing to the expanding number of hospitality properties is the investment that is coming in, say industry insiders.  

“After COVID, there was a dull year, but soon after that, demand increased and tourism also got better. Many high-profile liquor shops and pubs are coming up.  We are now getting more investment into the sector from real estate companies, politicians and other wealthy members for whom it is a dream to set up a good pub,” said Karunakar Hegde, a pub owner and vice-president of Federation of Wine Merchants’ Association.