South India emerges as key hub for hospitality industry

New Delhi: South India is emerging as a major hotspot for the hospitality and tourism industry, buoyed by rising travel demand, especially to emerging destinations and religious sites, and tourism-friendly policies of states such as Andhra Pradesh.

The acquisition of Zuri resort in Kumarakom, Kerala, by ITC Hotels, and Leela's takeover of a luxury resort in Coorg, Karnataka, this year are instances of robust industry focus on this market. Sattva Group, which is targeting a soft launch of its Taj-branded resort in North Bengaluru, in partnership with Indian Hotels & Company Ltd in early 2027, is "actively" evaluating opportunities across Chennai, Hyderabad, and Visakhapatnam.

The company is also exploring select luxury boutique properties in smaller hill stations across South India, where experiential travel is seeing increasing demand, said Adrija Agarwal, president, Sattva Group. It is also developing a Trident hotel at BIAL aerospace park, close to the Bengaluru airport, to serve the rapidly expanding aerospace and business ecosystem in the region.


Agarwal said travel is no longer limited to solely for business or annual holidays. "People are travelling more frequently, spending more on experiences and celebrating life's milestones in increasingly meaningful ways," she said. "Weddings, wellness, entertainment, weekend getaways and curated experiences are becoming major demand drivers." Amusement and theme park operator Wonderla Holidays opened boutique resort Isle by Wonderla last year, besides revamping an existing property. "Hospitality is an adjacent business to running theme parks," said Arun K Chittilappily, executive chairman and MD, Wonderla Holidays.