Bosonic lattice systems with extended interactions constitute a unique platform to study new phases of matter. This work presents an analysis of the Bose–Hubbard model with density-induced tunneling. The U(1) quantum rotor method in the path integral effective action formulation is used. This approach enables the discovery of a second kind of superfluidity in physical systems: pair superfluidity, thus adding to the phases of matter. It also sheds light on the properties of single-particle Bose–Einstein condensation (BEC) in optical lattice systems with higher inter-particle correlations. The derived effective phase Hamiltonian includes the residue of many-body correlations, providing information about phase transitions between the normal state and single-particle and pair superfluids at finite temperatures. The thermodynamical properties of the system are investigated. The impact of density-induced tunneling on single-particle BEC is also analyzed. The density-induced term supports single-particle coherence at high densities and low temperatures, improving the single BEC critical temperature. It is also responsible for dissipative effects, which are independent of the system’s thermal properties.