Lahore is considered the cultural capital of Pakistan and hosts a population of approximately 11 million (2017). It is the second-largest city in Pakistan with a total landmass of around 1,772 sq km. The demand drivers for the hospitality sector are primarily corporate and leisure travel. Due to the city’s well-planned infrastructure, booming startup culture, as well as safety and security, the hotels thrive on the food and beverage (F&B) segment, and utilization of amenities such as conference rooms, meeting rooms, and halls for weddings, corporate training, and exhibitions. Although the market slumped during the COVID-induced lockdowns of 2020, it has since been making a steady recovery as Average Daily Rates (ADRs) and occupancy rates begin to follow an increasing trend again.

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Lahore’s hotel market room supply consists of approximately 6,000 rooms with a majority of 3 and 4-star hotel developments. The government aims to discourage  unregistered guesthouses by not issuing any licenses unless mandatory conditions outlined by the tourism department are met. This has caused the number of guesthouses to remain low, accounting for less than 10% of total room inventory in the city. Among the emerging trends in the hotel market, the concept of hotel apartments is becoming popular as developers are signing MoUs with various hotel operators. In Lahore, developers have signed MoUs with Swiss International, Radisson, and Hyatt Regency, among others to supply nearly 2,000 hotel apartment units by 2025.