More than a year after securing ownership rights over the iconic Wildflower Hall following a prolonged legal battle, the Himachal Pradesh government has initiated the process of leasing out the luxury heritage property by inviting global bids from leading hospitality operators.
The Department of Tourism and Civil Aviation floated tenders for leasing the prestigious British-era property at Chharabra, near Shimla, on an Operation, Management and Maintenance (OMM) basis. The proposed licence period will be 35 years, comprising an initial 30-year term with a provision for a five-year extension.
The move is expected to attract some of the world’s leading hotel chains, given Wildflower Hall’s reputation as one of India’s finest luxury mountain resorts. The government hopes the property will generate substantial revenue while preserving its heritage character and global appeal.
As per the tender conditions, interested bidders will have to furnish a bid security of Rs 24 crore, while the tender document has been priced at Rs 5 lakh. The government has allowed a month-long site inspection period beginning June 24. A pre-bid conference will be held on July 1, while technical bids will be opened on July 24. The preferred bidder is expected to be announced on August 22.
Perched at an altitude of 8,250 feet amidst dense deodar forests, the 123-year-old five-star luxury property has 85 rooms along with premium facilities including a spa, swimming pool, gymnasium and banquet halls. The estate spreads across 77,471 square metres and is home to over 2,200 trees, most of them mature deodars.
The leasing process follows the culmination of a bitter legal dispute between the Himachal Pradesh government and East India Hotels Limited (EIHL), the parent company of the Oberoi Group. The dispute stemmed from an agreement signed after the original HPTDC-run Wildflower Hall was destroyed in a devastating fire in 1993.
Following the fire, the state government entered into a partnership with EIHL for reconstruction and operation of the property. However, the agreement was terminated by the then BJP government on March 6, 2002, citing breach of trust, triggering a prolonged legal battle that travelled through the Himachal Pradesh High Court and the Supreme Court.
In February 2024, the Supreme Court ruled in favour of the Himachal Pradesh government and ordered the transfer of ownership and control of the property back to the state. The government formally regained complete control on March 31, 2025. Until the leasing process is completed, EIHL has been allowed to continue operating the hotel under a temporary arrangement, with the Director (Tourism) serving as the Administrator of the property.
Officials believe the property’s unmatched location, heritage value and international reputation will make it one of the most sought-after hospitality assets in the country.
