Hotel Wildflower Hall under the hammer again as Himachal invites global bids
Photo used for indicative purpose only. Source Internet
Shimla, Oct 29,
Heritage and once ranked the top best small hotel in the world Hotel Wildflower Hall is under hammer, as the Himachal Pradesh government has resolved to invite global e tender for operation of this iconic property. Hotel Wildflower Hall, is a five-star heritage property perched above Shimla’s misty cedar forests in Mashobra formerly being run by the Oberoi Group.
The decision, taken during a cabinet meeting chaired by Chief Minister Sukhvinder Singh Sukhu, follows the government’s emphatic legal triumph earlier this month that granted it complete ownership of the ₹500-crore property after nearly three decades of litigation with East India Hotels (EIH) — the Oberoi Group’s parent company.
To ensure full transparency and international participation, the cabinet approved amendments to the existing tender terms and directed that the process be conducted through MSTC Limited, the Government of India’s e-commerce platform. Officials said the state will invite top-tier global hospitality brands to bid for the management and operation of the luxury resort, which has long been considered one of the finest mountain hotels in the world.
In its October 14, 2025 judgment, the Himachal Pradesh High Court declared the state the sole proprietor of Mashobra Resort Limited (MRL) — the joint venture company that managed the hotel — and ordered the transfer of its Rs 320 crore bank balance to the government. The court further directed EIH to surrender its Rs 13 crore shareholding, while allowing it to recover only half of its Rs 136 crore capital investment.
Following the Supreme Court’s February 2024 directive, the state formally took possession of the property on March 31, 2025, marking the end of one of Himachal’s longest-running corporate disputes.
Currently, the property earns the government Rs 1.75 crore per month, but officials believe the forthcoming international tender could yield significantly higher revenues, given Wildflower Hall’s premium global reputation. The hotel, featuring 80 opulent rooms, spa suites, and panoramic Himalayan views, commands tariffs reaching Rs 1.75 lakh per night during the peak season.
With the state exchequer under intense fiscal pressure, the Sukhu government sees this as a strategic financial reform to enhance revenue mobilization through high-value tourism assets. Hospitality remains a cornerstone of Himachal’s economy, contributing substantially to employment and investment inflows.
By inviting global participation, the state aims to reposition Shimla on the world tourism map as a destination where heritage meets luxury — and where Wildflower Hall begins a new chapter under transparent, world-class management.
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