Himachal news: HPTDC nod to outsource 8 hotels to private players

Facing mounting financial losses, the Himachal Pradesh Tourism Development Corporation (HPTDC) has decided to outsource eight of its hotels, restaurants and cafes to private players on an operate-and-maintain (ONM) basis, including some prime tourism properties in the state.

The Managing Director of HPTDC, in a letter written to the Principal Secretary (Tourism) on Friday, listed the eight units proposed for outsourcing. The communication stated that the decision had received approval from Chief Minister Sukhvinder Singh Sukhu.

Among the properties offered to private operators are several prominent hotels located in popular tourist destinations. These include Old Ross Common in Kasauli, Apple Blossom in Fagu, Sarvari in Kullu and Hotel Lakeview in Bilaspur. Given the steady tourist footfall in these locations, officials believe the properties could become profitable with proper renovation and professional management.

Interestingly, HPTDC Chairman Raghubir Bali had earlier urged the government to reconsider the outsourcing plan and instead focus on renovating these properties, many of which are currently in a rundown condition. According to him, upgrading the facilities could revive their commercial potential without handing them over to private operators.

The decision to outsource these units stems from a Cabinet approval granted on June 28, 2025, which initially cleared the outsourcing of 14 HPTDC properties. However, six properties were later removed from the list, including Kashmir House in Dharamsala, where the HPTDC headquarters was subsequently shifted.

The other properties now being offered to private players include Hotel Mamleshwar in Chindi-Mandi, Hotel Chanshal in Rohru, Hotel Shiwalik in Parwanoo and Giriganga in Kharapathar near Shimla.

Among these, Apple Blossom at Fagu and Lake View in Bilaspur are the largest units with 26 rooms each, followed by Hotel Sarvari in Kullu with 18 rooms.

The letter also said an officer of the rank of Deputy General Manager has been appointed as the nodal officer to coordinate with the Himachal Pradesh Infrastructure Development Board (HPIDB) for executing the outsourcing process.

Earlier, the 14 properties proposed for outsourcing included Kashmir House (Dharamsala), Roscommon Old (Kasauli), Sarvari (Kullu), Apple Blossom (Fagu), Shiwalik (Parwanoo), Ulh (Jogindernagar), Hill Top (Swarghat), Lakeview (Bilaspur), Bhagal (Darlaghat), Mamleshwar (Chindi-Mandi), Giriganga (Kharapathar), Chanshal (Rohru), Tourist Inn (Rajgarh-Sirmaur) and Wayside Amenity at Bhararighat in Solan.

The move is part of efforts to reduce the financial burden on HPTDC, which has been grappling with persistent losses. Out of the 55 hotels, restaurants and cafes owned by the corporation, as many as 35 units are currently running in the red.

While successive governments have explored the possibility of bringing in private players to manage loss-making properties, concerns over employee opposition and public backlash have slowed progress on earlier occasions.