CHANDIGARH: The iconic 123-year-old British-era five-star luxury heritage property Wildflower Hall, located 12 km from Shimla, has now again been leased to the Oberoi Group, through East India Hotels Limited (EIHL), for the next 35 years. EIHL has been managing the property for nearly four decades.
The Himachal Pradesh government has awarded the group the rights to operate and maintain the high-end hotel as it secured a record bid of 47.1 per cent of the annual gross revenue.
After the finalisation of the e-auction for the operation of the hotel, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said that the state government had successfully completed the competitive e-auction for granting license rights for the operation and management of the prestigious Wildflower Hall Hotel in Shimla.
“This resulted in a record bid of 47.1 per cent of the annual gross revenue. An estimated revenue of approximately Rs 3 crore per month is expected during the 35-year license period, with a 3 per cent annual increase. Over this period, a total revenue of approximately Rs 2,000 crore is anticipated. Additionally, an upfront license fee of Rs 24 crore and a commitment to invest at least Rs 50 crore in the hotel's property have been secured.
The state government has also received approximately Rs 400 crore in cash. The government has ensured full ownership and control over the hotel's land and property, the joint venture company, and the associated assets and rights.”
The iconic Wildflower Hall is 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.
Sources said that the Department of Tourism and Civil Aviation had invited tenders in June this year to lease the prestigious property at Chharabra near Shimla on an Operation, Management and Maintenance (OMM) basis, and a pre-bid conference was held in July.
An official said that the e-auction, conducted through a transparent and competitive bidding process, represented a major achievement in unlocking the economic potential of the iconic property while retaining full ownership of the hotel and its underlying assets with the state government.
The finalisation of the e-auction follows the conclusion of nearly 25 years of prolonged litigation, culminating in the restoration of the hotel property to the state government pursuant to judicial proceedings before the Supreme Court.
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 be managed 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.
