Will revive hotels: HP seeks review of HC order

The state government has decided to seek a review of the Himachal Pradesh High Court order for the closure of 18 loss-making hotels of the HP Tourism Development Corporation (HPTDC). The government said it would also submit a roadmap to the high court to turn the units profitable after a renovation of the run-down properties.

Editorial: White elephants

The HPTDC has already set in motion the process to hand over some of its properties — both loss-making and the ones earning little profit — to private players on an operate and management (ONM) basis to pull the corporation out of the red. However, the initiative is bound to face stiff resistance from the corporation staff, who have been opposing the move of successive regimes to lease out the loss-making units to the private sector.

“We will share the roadmap to enhance occupancy in these hotels to 90 per cent with the high court,” said Raghubir Singh Bali, Chairman, HPTDC. He said the condition of these hotels, most of which were located in prime areas, had deteriorated  over the past two decades.

“We will renovate these units and turn these into profitable ventures,” he said.

On resistance from nearly 1,700 employees of the HPTDC, Bali said the interests of the employees would be protected even as the Board of Directors of the HPTDC had given the go-ahead for handing over some of the hotels to private players on an ONM basis.

The cumulative loss of the HPDTC stood at Rs 122.38 crore as on March 31, 2022. Presently, 35 of the 55 hotels and restaurants being run by the state government-owned HPTDC are in loss. The low occupancy of these hotels, which is between 25 per cent and 40 per cent, is surprising considering their prime location. In fact, some of the top hotel chains are keen on taking on lease properties like The Palace, Chail, and The Peterhoff, Shimla.

Interestingly, some of the hotels whose closure has been ordered by the high court are in profit. These include The Palace (Chail), Kunzam and Log Huts (Manali), The Castle (Naggar), Hotel Meghdoot (Kiarighat) and The Bhagsu (McLeodganj).

Also, many of the loss-making units are located at popular hill stations like Kasauli, Kullu, Manali, Dalhousie, Naldehra, McLeodganj and Dharamsala.