Himachal Government to Invite Global Bids for Operation of Wildflower Hall Hotel

After a two-decade-long legal battle with East India Hotels Ltd (EIHL), the Himachal Pradesh government regained full ownership of the iconic Wildflower Hall on March 31, 2025.

The long-standing uncertainty over the management of the heritage seven-star property near Mashobra has finally been resolved. The state government has decided to invite global bids from leading international hotel chains to operate the prestigious property.

The decision was taken at a Cabinet meeting chaired by Chief Minister Sukhvinder Singh Sukhu on Saturday. The Cabinet concluded that only a renowned global hospitality brand would be capable of efficiently managing and maintaining the high standards of the luxury property nestled amid dense cedar forests near Shimla.

Industries Minister Harshwardhan Chauhan said that a Government of India enterprise has been tasked with preparing and inviting the global tenders. “The aim,” he explained, “is to ensure that only capable and reputed hotel chains participate, guaranteeing world-class management and high revenue returns for the state.”

Chauhan added that since regaining ownership, the state government has earned ₹425 crore in revenue from the hotel. The property is currently being run by the Oberoi Group on an interim basis until a new operator is selected through the global bidding process.

The transfer of full control followed a Supreme Court ruling in February 2024, which upheld earlier arbitration and court decisions in favor of the Himachal government and ordered the restoration of ownership to the state.

The dispute dates back to 2002, when the state terminated its agreement with EIHL, alleging violations of contract terms. What followed was a prolonged legal tussle across multiple forums before the property was finally restored to the government.

With the Cabinet’s latest decision, the government aims to ensure both prestige and profitability from this flagship mountain resort, while preserving Wildflower Hall’s legacy as one of India’s finest heritage hotels.