Himachal Pradesh Government Reconsiders, to Lease Only 6 of 14 Properties

Some of the properties were running at a loss.

The uncertainty surrounding the Himachal Pradesh Tourism Development Corporation’s (HPTDC) decision to hand over 14 of its hotels to private companies has been resolved, with the government now deciding to lease only six of these properties.

The initial decision to involve private firms in operating these loss-making units was taken at the cabinet meeting held on June 28 this year. However, Raghubir Bali, Chairman of HPTDC, raised concerns and called for a review of the decision. Online bookings for the six hotels likely to be leased will be discontinued from December 1.

HPTDC’s Managing Director, Rajeev Kumar, confirmed, “Online bookings for six hotels located in Solan district—Hotel Hilltop (Swarghat), Hotel Baghal (Daralghat), and Hotel Shivalik (Parwanoo), Giriganga Resort (Kharapathar, Shimla), Hotel Tourist Inn (Rajgarh, Sirmaur), and Hotel Uhl (Jogindernagar, Mandi)—will be closed from December 1 as they are being considered for privatization.”

Kashmir House in Dharamshala, which was originally included in the list of 14 properties for leasing, has now been removed and repurposed as the HPTDC office following its shift from Shimla to Dharamshala.

The hotels excluded from the list include Roscommon Old (Kasauli), Sarwari (Kullu), Apple Blossom (Fagu), Lakeview (Bilaspur), Mamleshwar (Chindi, Mandi), Chanshal (Rohru), and Wayside Amenity (Bhararighat, Solan).

Earlier, HPTDC had categorized its 56 hotels and restaurants into three groups—profitable, marginally profitable, and loss-making units. Most of the 14 properties identified for leasing were either loss-making or generating low profits. Kashmir House, after the relocation of HPTDC’s headquarters, was converted into an office space.

HPTDC employees have opposed the move and met with Chief Minister Sukhvinder Singh Sukhu, urging him to overturn the cabinet’s decision. Previous governments also explored privatization of such hotels and restaurants, but the efforts did not yield significant results. Some units, such as the Lakeview restaurant in Bilaspur, were leased out on a trial basis but are now again being operated by HPTDC.

Bali strongly believes that these properties, despite some being loss-making or marginally profitable, can be revived and turned into profitable assets. He stated, “With proper funding and renovations—especially for those properties that are in poor condition—they can easily be made financially viable.”

Many of HPTDC’s hotels are situated in prime locations but are underperforming, while private hotels—some of which are smaller and located in less favorable areas—are achieving better results.