The Cash-Strapped Himachal Pradesh Government Wants to Lease the Century-Old Wildflower Hall Property
The Cash-Strapped Himachal Pradesh Government Wants to Lease the Century-Old Wildflower Hall Property
Shimla, Feb 19: The Himachal Pradesh government has decided to rent out its century-old property Hotel Wildflower Hall, around 12 kilometres from Shimla, to try and ease its growing financial burden. This historic property, located in the canopy of a scenic deodar forest, has been a part and parcel of the region’s colonial legacy. The state government and its citizens hope to generate needed income by leasing out the property, while preserving its rich history.
A 100-Year Legacy and Legal Battles
The Hotel Wildflower Hall was originally built in 1902 by Lord Kitchener during the British Raj. Spread out over 100 acres of untouched land, the property has always appealed to tourists looking for a perfect combination of history and nature. Situated in the lap of dense deodar forests, it was once a luxury retreat of the British elite.
But the property has a troubled history of legal battles and ownership disputes. After a 20 years long legal battle, the Himachal Pradesh government finally resumed possession of the hotel in January 2024. The indirect dispute relating to the East India Hotels Ltd (EIHL) was over control and profit-sharing arrangements. The state’s success in this case closed the door on years of litigation surrounding the building, and with control transferred to the government, the onus was now on the state administration to put the property back on sound, financial footing.
Government Strategy: Leasing the Property
Himachal Pradesh government has given its nod to hire a consulting firm in a recent cabinet meeting to ease the leasing process of the Wildflower Hall. The decision was a tactical measure to seek an appropriate hospitality partner that could operate the luxury property effectively and aid in the state’s revenue generation.
It said that Chief Minister Sukhvinder Singh Sukhu stressed the need to utilize the historical property as a mutual asset for the state considering the current fiscal tightrope. The state government is keen on making major players from the hospitality sector hit the books to get hold of the property with the intention to operate it as a luxury resort as part of the strategy.
A Landmark Arbitration Ruling
The legal struggles to control Wildflower Hall have been lengthy and convoluted. That changed positively in June 2023 when the state government managed to enforce a 2005 award from an arbitration hearing. The award stipulates that the entire Wildflower Hall and the contiguous deodar forest land area be handed over to Himachal Pradesh Tourism Development Corporation (HPTDC). This decision paved the way for the state to reclaim the historic property and use it for productive purposes.
Now that the legal battle is over, the government wants to see what options are available for managing the property and maximizing its revenue-generating potential. The Oberoi Group, which currently manages the property as a luxury resort, would be allowed to compete among other top hospitality chains for the lease of Wildflower Hall, as already claimed by the sources, with the Himachal Pradesh government being open to the same. The global bids have been floated by the government, in order to try to find its best possible partner for the property, thus potentially bringing the best value to the state.
The Historical Significance and Challenges
The Wildflower Hall has a rich history, stretching back to the early 20th century. The property, which was owned by GHM Batten, private secretary to the Earl of Lytton, was burnt down and was rebuilt in 1925 by Batten. It was later leased to Lord Kitchener, who converted it into a fashionable retreat. In 1925, the British couple that bought the property tore down the original building and constructed a three-story, 37-room hotel, cementing Wildflower Hall’s identity as a luxury retreat.
After India became independent, the property was expropriated by the Indian government and was turned into an agricultural school until 1973. The property was later acquired by the Himachal Pradesh Tourism Development Corporation (HPTDC), which developed it as a hotel. The property faced a major setback in the 1990s when it was once again destroyed in a fire. Following this disastrous incident, the State Government floated global tenders for reconstruction and management of the property as a five-star resort and later entered into a joint venture agreement with the East India Hotels Ltd ( EIHL) to operate and manage it under the name of ‘Mashobra Resorts Limited’.
Looking to the Future: A New Beginning for Wildflower Hall
With the state government in charge now, the attention has turned to reenergizing the property and ensuring its financial viability for the long haul. Sukhu said, the government is more interested in getting the world-class hospitality partner who can manage the property and provide top-notch service to the tourists. It is expected that the process will be very competitive and invite timber from around the world to secure the best outcome.
The Oberoi Group has charmingly catered to tourists through Wildflower Hall as the epitome of luxury, however, the state government is interested in giving other well-known hotel brands a chance and inviting them to submit their bids and compete for the lease. By taking on this strategy, it will most likely create significant interest within the industry and allow the government to choose a partner that has the necessary resources and experience to restore the property to its former glory.
A Magician: Preserving Heritage and Driving Economic Growth
The new lease marks a new chapter for this storied property — a piece of Shimla colonial heritage. Wildflower Hall, set in an incomparable forest of deodar trees, remains a coveted sanctuary for discerning travelers. The Himachal Pradesh government’s drive to lease out the property is part of a bid to bring tourists back to the region and generate badly needed revenue for the cash-strapped state.
By when, the hospitality industry will keep a close watch on what kind of partner is found to manage the property and its impact may linger for long with Himachal Pradesh tourism always on a tightrope. If it works, the effort would offer a long overdue financial lifeline to the state and serve as a model of how historic properties can be brought back to life for future generations.
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