Global hospitality asset under hammer: HP invites international bids for Hotel Wildflower Hall
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Global hospitality asset under hammer: HP invites international bids for Hotel Wildflower Hall
Shimla, June 25,
In a major initiative to unlock the commercial potential of one of India’s most celebrated luxury hospitality assets, the Himachal Pradesh government has issued a global tender inviting leading domestic and international hotel operators to bid for the operation, management and maintenance of the iconic five-star Wildflower Hall at Chharabra near Mashobra, about 13 km from Shimla.
The tender, floated through MSTC Limited, the Government of India’s e-commerce platform, comes months after the state secured complete ownership of the property following a prolonged legal battle with East India Hotels (EIH), the flagship hospitality company of the Oberoi Group.
Wildflower Hall occupies nearly 77,471 square metres of prime Himalayan estate amid dense cedar forests overlooking the snow-clad Greater Himalayas. Originally the summer retreat of Lord Kitchener, the Commander-in-Chief of the British Indian Army, the heritage property was later rebuilt as one of India’s most exclusive luxury mountain resorts.
The hotel houses around 85 premium guest rooms and suites, a world-class spa, fine-dining restaurants, conference facilities and extensive landscaped grounds, attracting high-end domestic and international travellers throughout the year.
The government has prescribed stringent eligibility conditions to ensure participation only by established global hospitality companies. Bidders must have an average annual turnover of at least Rs 1,200 crore during the last three financial years, including Rs 600 crore from Indian operations, and possess a minimum net worth of Rs 1,500 crore.
The successful bidder will also have to pay a non-refundable upfront fee of Rs 24 crore and a minimum guaranteed monthly licence fee of Rs 2 crore, besides offering a share of the hotel’s gross revenue through the competitive electronic auction process.
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To qualify technically, a standalone bidder must have experience of operating at least 700 rooms in five-star hotels during the preceding five years. Alternatively, a bidder may partner with a recognised hotel brand, provided the bidder operates at least 400 rooms and the partner brand manages 500 rooms across a maximum of five five-star hotels.
The project will be awarded through a transparent two-stage global e-auction, with the highest revenue-sharing bidder being selected for the licence. The successful operator will undertake the operation, management and maintenance of the property while preserving its heritage character and international standards of luxury hospitality.
For the fiscally stressed Himachal Pradesh government, the tender marks a significant step towards monetising premium public assets and enhancing non-tax revenue.
Officials expect the global bidding process to attract internationally renowned hospitality brands, strengthening Shimla’s position as one of South Asia’s premier luxury mountain tourism destinations while ensuring sustained returns to the state exchequer.
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