Paying Guest (PG) accommodations in Bengaluru are witnessing nearly 25% losses due to recent regulatory changes, tech industry job cuts, and rising utility costs. As per media reports, this setback comes just as the sector was beginning to recover from the Covid-induced downturn.
Several PGs in Bengaluru have shut down over the past year, and many more are struggling to stay afloat, according to industry insiders. In nearly every part of the city, at least two PGs have closed, with the impact being more severe in IT hubs like Marathahalli and Sarjapur. PG owners told the publication that they are facing income losses of nearly 25%, making it difficult to sustain operations.
Aruna Kumar DT, president of the PG Owners Welfare Association, said several PG owners who were running only one establishment have shut shop. “Only those who run multiple branches are managing to run them. Even those staying afloat are seeing a dip in the number of guests and have reported a loss of 20-25 percent,” he said.
PG owners have also been under pressure from the Bruhat Bengaluru Mahanagara Palike (BBMP) for violating regulations. New rules focusing on safety and cleanliness—including one that prohibits PGs in residential areas where roads are less than 40 feet wide—have led to the closure of about 100 PGs in Mahadevapura. Both the BBMP and Bengaluru Police have increased their monitoring of such establishments following a murder that occurred inside a paying guest house last August.
Both the BBMP and the Bengaluru Police have been keeping a close eye on such establishments after a murder took place inside a paying guest house last August.
Sukhi Seo, secretary of the Bengaluru PG owners’ association, said that with a hike in water and electricity rates, it’s hard to run the business at a price guests can afford. “Many of our guests are students. We do not want to burden them with higher rents. But the increasing costs and changes to be made to abide by norms laid out by the civic body are only burning a hole in our pocket. It is difficult to keep the business running with such losses,” Sukhi said.