I am using Hibernate latest version 4.3.5.Final.
My hibernate.cfg.xml file content:
Finally able to fix the issue, the issue is with the way SessionFactory is getting created.
For a starter, official document is the first place to go and I must say that Hibernate official documentation seems to be not update with latest version changes.
Fix is to apply the configuration settings to StandardServiceRegistryBuilder instance.
// Create the SessionFactory from hibernate.cfg.xml
Configuration configuration = new Configuration();
configuration.configure("hibernate.cfg.xml");
ServiceRegistry serviceRegistry = new StandardServiceRegistryBuilder()
.applySettings(configuration.getProperties()).build();
SessionFactory sessionFactory = configuration
.buildSessionFactory(serviceRegistry);
Please refer my blog post here for more details.