Shimla: The Himachal Pradesh government has successfully concluded the competitive e-auction for the operation and management of the iconic Wildflower Hall Hotel in Shimla, securing a revenue-sharing bid of 47.1 per cent of the hotel’s annual gross revenue.
The arrangement is expected to generate approximately ₹3 crore per month for the state exchequer, with an annual escalation of three per cent over the 35-year licence period. The government projects aggregate revenue of around ₹2,000 crore during this period, in addition to an upfront licence fee of ₹24 crore and a committed minimum investment of ₹50 crore in the hotel property.
The state government has regained control of the property following nearly 25 years of prolonged litigation. The dispute culminated in the restoration of the hotel property to the state government through judicial proceedings before the Supreme Court.
According to the government, it has secured complete ownership and control of the hotel land and property, the joint venture company and its associated assets and rights. The settlement has also resulted in cash accruals of approximately ₹400 crore for the state.
The government said the transparent and competitive bidding process would help unlock the economic potential of the heritage hospitality property while ensuring that its ownership and underlying assets remain with the state.
Chief Minister Sukhvinder Singh Sukhu said his government was committed to safeguarding the legitimate rights and interests of Himachal Pradesh in all major projects and public assets.
He described the successful resolution of the Wildflower Hall matter after nearly 25 years of litigation as a significant achievement for the state.
The revenue-sharing arrangement is expected to provide a long-term, recurring source of income for the state exchequer, while the committed investment will support improvements to the hotel property. The government has presented the outcome as an example of protecting public assets while enhancing their commercial potential.
