HBI Staff | Hyderabad 
Days after ordering the closure of 18 Himachal Pradesh Tourism Development Corporation (HPTDC) hotels, citing them as “white elephants,” the Himachal Pradesh High Court on Friday granted a reprieve to nine of these properties, allowing them to remain operational until March 31, 2025.
Justice Ajay Mohan Goel, presiding over a single-judge bench, modified his earlier directive following an application by HPTDC. The nine hotels permitted to continue operations include:
- The Palace Hotel (Chail)
- Hotel Devdar (Khajjiar)
- The Castle (Naggar)
- Hotel Meghdoot (Kiarighat)
- Hotel Chandrabhaga (Keylong)
- Hotel Log Huts (Manali)
- Hotel Kunzum (Manali)
- Hotel Bhagsu (McLeodganj)
- Hotel Dhauladhar (Dharamshala)
The November 19 order, which directed the immediate closure of 18 out of 56 HPTDC-run hotels due to low occupancy, sparked debate over the criteria used to assess profitability. Advocate Shilpa Goel, representing HPTDC, argued before the court that occupancy alone does not determine profitability, as these hotels generate income through ancillary services such as hosting private and government functions.
The original directive from Justice Goel labeled the 18 properties as “white elephants” and ordered their closure by November 25. The decision was part of a petition concerning unpaid financial benefits to retired HPTDC employees.
Next Steps and Political Fallout
The fate of the remaining nine hotels, including Hotel Geetanjali (Dalhousie), Hotel Baghal (Darlaghat), and Hotel Apple Blossom (Fagu), among others, will be determined on November 24.
The closures, coupled with the attachment of Himachal Bhawan in Delhi, have placed the Sukhvinder Singh Sukhu-led state government on the defensive. The Opposition BJP has criticized the administration for failing to safeguard Himachal Pradesh’s tourism interests and cultural heritage.
This unfolding controversy underscores the challenges of balancing fiscal accountability with preserving the state’s iconic tourism properties.
