The 35-year operating licence is expected to generate around INR 2,000 crore for the state, while ownership of the hotel and its underlying assets remains with the government.
The Himachal Pradesh government has secured a 47.1% share of annual gross revenue through the auction of operating and management rights for Wildflower Hall, the luxury hotel property at Chharabra near Shimla. The 35-year licensing arrangement is projected to generate approximately INR 2,000 crore for the state over its tenure.
Under the agreement, the successful bidder has committed to an upfront licence fee of INR 24 crore and a minimum investment of INR 50 crore in the property. The state is also expected to receive around INR 3 crore per month, with an annual escalation of 3% in the revenue share.
The transaction does not involve an outright sale of the property. Ownership of the hotel, land and underlying assets will remain with the Himachal Pradesh government, which has completed the competitive e-auction for its operation, management and maintenance.
According to the state government, the 47.1% revenue-sharing offer is the highest secured in India in a transaction of this nature.
The auction follows a prolonged legal dispute between the state government and East India Hotels Ltd (EIH), the Oberoi Group company, over the property’s ownership and management. The government took possession of Wildflower Hall on March 31, 2025, following the Supreme Court’s February 2024 order upholding the process for restoration of the property.
The state invited global bids in June 2026 to appoint a new operator under a long-term licensing arrangement. The latest auction marks the transition to a new operating framework, with the government retaining ownership while seeking private-sector expertise to manage the hospitality asset.
The development highlights an alternative approach to public-sector hospitality asset management, combining private operation with government ownership and a revenue-sharing arrangement.
source : Himachal Scape
