CHANDIGARH: The iconic 123-year-old British-era five-star luxury heritage property Wildflower Hall, located 12 km from Shimla, will now be leased out, with the Himachal Pradesh government floating global bids for a 35-year lease.
Sources said the Department of Tourism and Civil Aviation has invited tenders to lease the prestigious property at Chharabra near Shimla on an Operation, Management and Maintenance (OMM) basis. The proposed licence period is 35 years, comprising an initial 30-year term with a provision for a five-year extension.
A pre-bid conference will be held on July 1, while technical bids will be opened on July 24. The successful bidder is expected to be announced on August 22. The government has also announced a month-long site inspection beginning June 24.
Interested bidders will have to furnish a bid security of Rs 24 crore, while the tender document has been priced at Rs 5 lakh.
Sources said the tender is expected to attract leading hotel chains from around the world, given Wildflower Hall’s reputation as one of India’s finest luxury mountain resorts. Situated at an altitude of 8,250 feet and spread across 77,471 square metres, the property has 85 rooms and premium facilities including a spa, swimming pool, gymnasium and banquet halls. It is also home to over 2,200 trees, most of them mature deodars.
The government hopes the property will generate substantial revenue while preserving its heritage character and global appeal.
The global tender comes after the conclusion of a long-running legal dispute between the Himachal Pradesh government and East India Hotels Limited (EIHL), the parent company of the Oberoi Group.
Originally owned by GHM Batten, private secretary to the Earl of Lytton, the building was destroyed in a fire and later reconstructed by Batten. Lord Kitchener subsequently obtained the lease.
In 1909, Kitchener returned to England and the property was sold to a British couple, who demolished the house in 1925 and built a three-storey, 37-room hotel.
After Independence, the property was taken over by the Centre and housed an agricultural school until 1973. It was later handed over to the Himachal Pradesh Tourism Development Corporation (HPTDC) for hotel operations. HPTDC subsequently built 11 cottages, four rooms, a multipurpose hall and a green room.
In 1993, the building was destroyed in another fire. The state government then floated global tenders to develop it as a five-star property. Following this, it was handed over to EIHL to manage through a joint venture, Mashobra Resorts Limited.
However, in March 2022, the then state government terminated the partnership agreement over alleged contractual violations, triggering a prolonged legal battle that moved from the Himachal Pradesh High Court to the Supreme Court.
In February 2024, the apex court ruled in favour of the Himachal Pradesh government and directed that ownership and control of the property be returned to the state. On March 31 last year, the government officially regained full control of the property.
Until a new lease agreement is finalised, EIHL has been permitted to continue operating the property under a temporary arrangement, while the Director of Tourism serves as the administrator.
