Bangalore is fast becoming a hotelier’s dream or nightmare – depending on which way you want to look at it. With more and more business traffic flowing into the South Indian commercial and IT city, hotel room rates are shooting through the roof, with rates in excess of US$300 not being unusual. Five-star hotels like the Taj Group, Leela and Kempinski are finding it hard to secure rooms for the ever-booming clientele. “Corporates are asking us why we can’t offer them corporate rates. We try to clear the rooms for them but it’s becoming impossible,” said Ivy Ong, regional director of sales for Taj Hotels. “The current rates in Bangalore are putting off some travellers, especially those from Asia, because they don’t find it right.” “Flights are not only the problem in India now, rooms too,” said Ong. The boom in Bangalore reflects the rapid growth currently enjoyed by India’s four southern states – Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. Each has been registering annual growth rates of more than 10 percent compared to the national average of seven percent. Big boys like Microsoft, Oracle, IBM, Ford and Sony have set up shop or production facilities in these states.