≡-India To Lease Fourteen State-Run Himachal Hotels Such As Hotel Hill Top, Hotel Lakeview, Hotel Apple Blossom, Hotel Shivalik, Hotel Iravati, To Enhance Tourism Growth – Viral of Today

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Home » HOTEL NEWS » India To Lease Fourteen State-Run Himachal Hotels Such As Hotel Hill Top, Hotel Lakeview, Hotel Apple Blossom, Hotel Shivalik, Hotel Iravati, To Enhance Tourism Growth Thursday, July 10, 2025India has initiated a sweeping tourism reform by approving the leasing of fourteen prominent state-run hotels in Himachal Pradesh—such as Hotel Hill Top, Hotel Lakeview, Hotel Apple Blossom, Hotel Shivalik, and Hotel Iravati—under an operations and maintenance model. This bold move is aimed at reviving underperforming hospitality assets, improving service quality through private-sector expertise, and enhancing the overall tourist experience in the state. By transferring management to professional operators while retaining ownership, the government seeks to modernize infrastructure, attract more visitors, and boost economic activity in one of India’s most scenic travel destinations.Himachal Pradesh Approves Leasing of 14 HPTDC Hotels Under O&M Model to Revive Tourism AssetsIn a strategic move aimed at improving the management and financial viability of government-run hospitality infrastructure, the Himachal Pradesh government has approved the leasing of 14 hotels managed by the Himachal Pradesh Tourism Development Corporation (HPTDC) under an operations and maintenance (O&M) model. This decision is part of the state’s broader efforts to strengthen tourism infrastructure and boost the overall contribution of the tourism sector to the regional economy.Objective Behind the Leasing ModelThe approved O&M model is designed to address operational inefficiencies and persistent financial losses incurred by several HPTDC-owned hotels. These properties, while located in key tourist hubs, have been underperforming due to aging infrastructure, limited resources for upgrades, and the absence of modern service practices.By transitioning to an O&M-based lease system, the government seeks to introduce professional operational standards, ensure better upkeep of facilities, and deliver improved hospitality services to tourists. The expectation is that private entities, equipped with industry expertise and operational flexibility, will manage the hotels more efficiently while HPTDC retains ownership.Implementation Timeline and Administrative OversightFollowing the state cabinet’s approval, the Principal Secretary of Tourism has formally directed the Managing Director of HPTDC to implement the leasing process within a defined period of three months. This directive includes finalizing the terms of operation, preparing bid documents, and identifying suitable operators through a transparent selection process.The implementation will involve setting performance benchmarks, establishing compliance frameworks, and ensuring adherence to environmental and regulatory standards. Lease agreements will likely include conditions related to maintenance obligations, customer service levels, pricing regulation, and revenue-sharing mechanisms to safeguard public interest.Hotels Identified for LeasingFourteen hotels currently operated by HPTDC have been shortlisted for leasing under the O&M model. These properties are located across popular travel circuits in Himachal Pradesh and include:Hotel Hill Top, SwarghatHotel Lakeview, BilaspurHotel Apple Blossom, FaguHotel Shivalik, ParwanooKashmir House, DharamshalaHotel Iravati, ChambaHotel Chail Palace, ChailHotel Geetanjali, DalhousieHotel Tea Bud, PalampurHotel Kunzam, ManaliHotel Hatu, NarkandaHotel Dhauladhar, DharamshalaHotel Pinewood, BarogHotel Kasauli, KasauliThese hotels span a range of elevation zones, catering to diverse segments of tourists including leisure travelers, nature enthusiasts, heritage seekers, and business visitors.Expected OutcomesThe shift to an O&M model is projected to bring multiple benefits. First, it is expected to enhance service quality through the adoption of industry best practices in hospitality. Private operators are likely to invest in refurbishments, technological upgrades, and workforce training—elements that are often constrained in public sector frameworks.Second, the leasing model aims to relieve HPTDC of operational liabilities and recurring financial deficits. By outsourcing day-to-day operations, the corporation can focus on its core functions such as tourism promotion, infrastructure planning, and policy coordination.Third, improved performance of these hotels could contribute to higher tourist footfall, extended stays, and increased average spending per visitor. This would generate a positive multiplier effect across associated sectors such as transport, retail, food services, and handicrafts.Fourth, the initiative aligns with Himachal Pradesh’s broader tourism policy goals that prioritize sustainable development, destination diversification, and private sector engagement.Role of Private Sector in Public Tourism AssetsThis move is part of a growing trend among Indian states to explore public-private partnership (PPP) models for revitalizing underperforming government tourism assets. By involving private sector players through O&M leases, the public sector aims to leverage operational efficiency without parting with ownership.In the case of Himachal Pradesh, the state’s scenic landscapes, climatic diversity, and cultural heritage offer significant tourism potential. However, unlocking this potential requires quality accommodation, responsive service, and efficient management—gaps that the O&M leasing initiative is intended to bridge.Monitoring and Evaluation MechanismThe state government is expected to put in place a robust monitoring mechanism to oversee the performance of the leased hotels. This may include periodic audits, third-party evaluations, and feedback systems for tourists. Operators will be required to meet minimum service standards, comply with tourism department regulations, and maintain the properties in accordance with heritage and environmental guidelines.Further, the leasing process will involve legal safeguards to prevent misuse of public assets and ensure that the state retains control over key decisions such as tariff structures, branding, and long-term development plans.Economic ImplicationsTourism is a significant contributor to the Himachal Pradesh economy, generating employment and supporting livelihoods across rural and urban areas. With the COVID-19 pandemic having disrupted global and domestic tourism flows, the state has been working on measures to revive the sector. The leasing of these hotels is one such measure aimed at accelerating the recovery and building long-term resilience.India has launched a bold tourism overhaul by leasing fourteen landmark Himachal hotels—including Hotel Hill Top, Hotel Lakeview, Hotel Apple Blossom, Hotel Shivalik, and Hotel Iravati—to raise hospitality standards and revive loss-making assets. The move aims to modernize public tourism infrastructure, attract more visitors, and boost economic growth through private-sector operations.By improving the operational efficiency of its hotel network, Himachal Pradesh seeks to position itself competitively in the national tourism landscape and attract a larger share of high-spending, quality-conscious travelers.Tags: himachal pradesh, hospitality reform, Hotel Apple Blossom, Hotel Hill Top, Hotel Iravati, Hotel Lakeview, Hotel News, Hotel Shivalik, HPTDC, India Tourism, operations and maintenance model, Tourism news, Travel News

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