Himachal secures record-breaking bid for operation and management of Wildflower Hall Hotel, Shimla

SHIMLA 30 October, 2026

In a landmark achievement under the visionary leadership of Chief Minister Thakur Sukhvinder Singh Sukhu, the Himachal Pradesh government has successfully concluded the competitive e-auction for granting licence rights for the Operation and Management of the prestigious Wildflower Hall Hotel, Shimla, securing an unprecedented revenue-sharing bid of 47.1 percent of the Annual Gross Revenue. This is stated to be the highest-ever revenue-sharing bid in India for a transaction of this nature.
The successful e-auction marks a significant milestone in the state government’s efforts towards the optimal utilisation and commercial management of valuable public assets. The arrangement is expected to generate substantial and sustained recurring revenue for the State Exchequer, estimated at approximately Rs. 3 crore per month, with an annual escalation of 3 percent, over the licence period of 35 years. The transaction is projected to generate aggregate revenue of approximately Rs. 2,000 crore during the licence period, besides an upfront licence fee of Rs. 24 crore and a committed minimum investment of Rs. 50 crore in the hotel property.
Significantly, this landmark achievement follows the successful 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. Consequently, the state government has secured complete ownership and control of the hotel land and property, the Joint Venture Company and its associated assets and rights, along with cash accruals of approximately Rs. 400 crore.
The successful auction, conducted through a transparent and competitive bidding process, represents a major achievement in unlocking the economic potential of this iconic property while retaining full ownership of the hotel and its underlying assets with the state government. The initiative reaffirms the government’s commitment to transparency, fiscal prudence and efficient management of public assets and promotion of world-class tourism infrastructure, while securing substantial long-term financial benefits for the state.
Chief Minister Thakur Sukhvinder Singh Sukhu said that his government was committed to safeguarding the legitimate rights and interests of the state in every major project and public asset. He said that the successful resolution of the Wildflower Hall matter, after nearly 25 years of litigation, was a significant achievement for the state. He further stated that the present government had consistently pursued the state’s legitimate interests in important projects, including the Kishau Multipurpose Project and matters concerning JSW, to ensure that Himachal Pradesh received its rightful benefits. He said that the government would not compromise on the interests of the state and its people and would continue to pursue every matter firmly and transparently.
The Chief Minister said that the restoration of Wildflower Hall, securing a record-breaking revenue-sharing bid and ensuring substantial long-term financial returns demonstrated his government’s resolve to protect public assets and strengthen the state’s economy. He appreciated the dedicated efforts of the administrative machinery, consultants and legal teams whose sustained commitment and professional efforts helped safeguard the state’s interests. He said that the government would continue to adopt transparent, accountable and result-oriented approaches to ensure that the state’s resources and assets were utilised in the best interests of its people.

Samagra Sikhsha