States » NorthPosted at: Oct 30 2026 5:55PM


Wildflower Hall hotel in Shimla to fetch Himachal government Rs 3 crore monthly revenue

Shimla, Oct 30 (UNI) The Himachal Pradesh government is expected to earn approximately Rs 3 crore per month from the operation and management of the prestigious Wildflower Hall luxury hotel near Shimla, following the conclusion of a competitive e-auction that secured a record revenue-sharing bid of 47.1 per cent of its annual gross revenue.
The state government said the bid was the highest-ever revenue-sharing offer in India for a transaction of this nature.
The agreement will be for a period of 35 years, with an annual escalation of three per cent in the revenue share.
The arrangement is projected to generate approximately Rs 2,000 crore in aggregate revenue for the state during the licence period. Besides, the successful bidder will pay an upfront licence fee of Rs 24 crore and undertake a committed investment of Rs 50 crore in the hotel property.
The e-auction marks a significant development in the state's efforts to unlock the commercial potential of valuable public assets while retaining ownership and control of the property.
The achievement assumes significance as it follows nearly 25 years of prolonged litigation over the ownership and control of Wildflower Hall, culminating in the restoration of the hotel property to the state government through judicial proceedings before the Supreme Court.
Following the resolution of the dispute, the state government secured complete ownership and control of the hotel land and property, the joint venture company and its associated assets and rights.
It also received cash accruals of approximately Rs 400 crore, according to the government.
The government said the transparent and competitive bidding process would ensure optimal utilisation of the iconic tourism property and provide a sustained source of recurring revenue to the state exchequer without transferring ownership of the underlying assets.
Chief Minister Sukhvinder Singh Sukhu said his government was committed to protecting the legitimate rights and interests of Himachal Pradesh in every major project and public asset.
He described the successful resolution of the Wildflower Hall matter after nearly 25 years of litigation as a significant achievement for the state, adding that the government had consistently pursued Himachal's interests in important projects.
Referring to the Kishau Multipurpose Project and matters concerning JSW, Sukhu said the government was determined to ensure that the state received its rightful benefits.
He asserted that the government would not compromise on the interests of Himachal Pradesh and its people and would continue to pursue such matters firmly and transparently.
The Chief Minister said the restoration of Wildflower Hall, the record revenue-sharing bid and the substantial long-term financial returns reflected the government's resolve to safeguard public assets and strengthen the state's economy.
He also appreciated the efforts of the administrative machinery, consultants and legal teams for their sustained work in protecting the state's interests.
Sukhu said the government would continue to adopt transparent, accountable and result-oriented approaches to ensure that public resources and assets were utilised in the best interests of the people.
UNI BN
Tags: #Wildflower Hall hotel in Shimla to fetch Himachal government Rs 3 crore monthly revenue
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