The Himachal Pradesh High Court has amended its earlier directive to shut down 18 loss-making hotels of the Himachal Pradesh Tourism Development Corporation (HPTDC). In a revised order, the court has granted conditional permission for nine of these hotels to operate until March 31, 2025, while retaining the closure order for the remaining nine.
Justice Ajay Mohan Goel passed the order while disposing of HPTDC’s plea to withdraw its earlier decision issued on November 19. The court stated that the performance of the reopened hotels would be reviewed after March 31, and if they fail to show profitability and optimal performance, further orders would be issued, potentially leading to permanent closure.
Nine Hotels Get Conditional Reprieve
The following hotels have been allowed to continue operations until March 31, 2025:
- The Palace Hotel, Chail
- Hotel Chandrabhaga, Keylong
- Hotel Deodar, Khajjiar
- Hotel Bhagsu, McLeodganj
- Hotel Log Huts, Manali
- Hotel Dhauladhar, Dharamshala
- Hotel Meghdoot, Kiarighat
- Hotel Kunjum, Manali
- Hotel The Castle, Naggar
The court emphasized that these hotels must demonstrate maximum performance and financial improvement by the deadline for reconsideration of further operations.
Nine Hotels to Remain Closed
However, the following hotels will remain shuttered as per the original directive:
- Hotel Geetanjali, Dalhousie
- Hotel Baghal, Darlaghat
- Hotel Kunal, Dharamshala
- Hotel Kashmir House, Dharamshala
- Hotel Apple Blossom, Fagu
- Hotel Giriganga, Kharapathar
- Hotel Sarvari, Kullu
- Hotel Hadimba Cottage, Manali
- Hotel Shivalik, Parwanoo
Court’s Reasoning and Corporation’s Plea
In its November 19 order, the High Court had directed the closure of 18 loss-making hotels, citing the need to prevent the wastage of public resources on what it described as “white elephants.” The court had noted that HPTDC had failed to effectively utilize its properties for profit, resulting in a financial burden on the state treasury.
Responding to HPTDC’s plea, the court agreed to allow some hotels to operate conditionally to settle advance bookings and test whether they could improve profitability under the prevailing circumstances. The court stated that the decision could be revisited if the tourism sector improves.
The High Court’s decision offers a temporary lifeline to some of the HPTDC hotels but keeps the pressure on them to perform financially. The Tourism Development Corporation will now need to ensure that these properties are effectively managed to demonstrate profitability, which could influence future court rulings.
