Hospitality industry booms with rising number of industries and tourists
“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 fivestar 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 fastpaced growth of the hospitality industry to multiple industries and opportunities in Bengaluru.
“We have aerospace, automobile, and electric vehicles industries. We also have numerous startups. 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.
Increased investments 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 highprofile 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 vicepresident of Federation of Wine Merchants’ Association.
“The number of establishments, the size of these establishments and the investment going into these properties has seen a tremendous increase,” said Mukesh Tolani, head of the Bengaluru chapter of National Restaurant Association of India (NRAI). “Everyone seems to think that this industry is a gold mine right now, and that this is a lucrative business. There is also a glamour factor to it,” he said.
When asked about the establishments that have the highest demand in the sector, he mentioned that any place that has a bar, including microbreweries, is in demand.
Licence troubles
Even as demand increases, pub owners have reported difficulties in obtaining liquor licences. Hence, the resale of CL – 9 (Refreshment Room (Bar)) licences is in full swing. At least 100 new pubs have bought resold licences and redeveloped them in the last year, according to Mr. Hegde.
The capital investment has also increased for these newly developed places. Another indicator of the kind of demand is the fact that around 500 new licences have been obtained in the last year in the CL7 (Hotel and Boarding house licences) category.