The Himachal Pradesh government has officially launched the process of leasing out the iconic Wildflower Hall, a luxury heritage property near Shimla, by inviting global bids from leading hospitality operators. The Department of Tourism and Civil Aviation issued tenders for leasing the British-era property on an Operation, Management and Maintenance (OMM) basis, with a proposed licence period of 35 years comprising an initial 30-year term and a five-year extension option.
The move comes more than a year after the state government secured full ownership rights over the property following a prolonged legal battle with East India Hotels Limited (EIHL), the parent company of the Oberoi Group. The Supreme Court ruled in favour of the state government in February 2024, and the government formally regained control on March 31, 2025.
Lease Terms and Bid Conditions
Interested bidders must provide a bid security of Rs 24 crore, and the tender document is priced at Rs 5 lakh. The government has allowed a month-long site inspection period starting June 24. A pre-bid conference is scheduled for July 1, technical bids will be opened on July 24, and the preferred bidder is expected to be announced on August 22.
The leasing process 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. 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.
Property Details
Perched at an altitude of 8,250 feet amidst dense deodar forests, the 123-year-old five-star luxury property features 85 rooms along with premium facilities including a spa, swimming pool, gymnasium, and banquet halls. The estate spans 77,471 square metres and is home to over 2,200 trees, most of them mature deodars.
The government hopes the property will generate substantial revenue while preserving its heritage character and global appeal. 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.
Background of the Legal Dispute
The leasing process follows the culmination of a bitter legal dispute between the Himachal Pradesh government and EIHL. The dispute originated from an agreement signed after the original Himachal Pradesh Tourism Development Corporation (HPTDC)-run Wildflower Hall was destroyed by a devastating fire in 1993. Following the fire, the state government partnered 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 went 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.
