Himachal Pradesh government has completed the competitive e-auction for licence rights to operate and manage the Wild Flower Hall hotel in Shimla. According to a statement by Chief Minister Sukhvinder Singh Sukhu, the auction received a record bid of 47.1 percent of annual gross revenue.
Revenue projections
As per the Chief Minister’s statement, the state expects to earn roughly ₹3 crore per month during the 35-year licence period, with an annual escalation of 3 percent. Over the full term, total revenue is estimated at around ₹2,000 crore.
Upfront fee and investment commitment
The arrangement also includes an upfront licence fee of ₹24 crore and a commitment to invest a minimum of ₹50 crore in the hotel’s property. The state government has also received about ₹400 crore in cash, according to the statement.
Government retains ownership
The Chief Minister said the government retains full ownership and control over the hotel’s land and property, the joint venture company, and its associated assets and rights.
