The Himachal Pradesh government has decided to hand over eight hotels of the government-owned Himachal Pradesh Tourism Development Corporation (HPTDC) to private players on an operation and maintenance (O&M) basis in an attempt to reduce the corporation’s financial losses and improve tourism facilities.
The Managing Director of the corporation has formally informed the Special Secretary of the Tourism Department and sent the list of hotels identified for the move. With this communication, the process of transferring the operation and maintenance of these hotels to private operators has begun.
The hotels included in the list are Hotel Lake View (25 rooms) in Bilaspur, Hotel Mamleshwar (10 rooms) in Mandi district and the well-known Hotel Apple Blossom (26 rooms) in Shimla. Other properties proposed for private operation include Hotel Sarvari in Kullu, Hotel Old Roscommon in Kasauli, Hotel Shivalik in Parwanoo, and Hotel Chanshal and Hotel Giriganga in the Rohru area of the Shimla district.
These hotels already have facilities such as restaurants, bars, conference halls and parking areas. Officials said private participation is expected to improve professional management, enhance services for tourists and increase tourism revenue.
To facilitate the transition process, Tourism Corporation Deputy General Manager Dheeraj Bali has been appointed to coordinate with the Himachal Pradesh Infrastructure Development Board (HPIDB). He will oversee the matter from the corporation’s corporate office in Dharamshala.
The decision comes amid continuing financial challenges faced by the Tourism Corporation. According to government data and previous reports, the corporation operates around 55 hotels, restaurants and cafés across the state, but a large number of these units have been running at a loss. Around 35 properties are reported to be loss-making, highlighting the operational strain on the public sector undertaking.
Financial records show that the HPTDC had accumulated significant losses over the years. Operational challenges such as low occupancy in some properties, high maintenance costs, a large workforce and rising salary liabilities have also affected the corporation’s financial health. In several cases, poor occupancy rates and declining revenues have made it difficult to sustain operations at many government-run hotels.
Officials say that involving private operators is being considered as a way to improve efficiency and professional management of tourism properties while reducing the financial burden on the state-owned corporation.
