Priyanka Thakur
Shimla
The Himachal Pradesh government has initiated a major restructuring of its state-run tourism infrastructure, approving a proposal to hand over eight hotels of the Himachal Pradesh Tourism Development Corporation (HPTDC) to private operators for operation and maintenance (O&M).
The move, cleared by Chief Minister Sukhvinder Singh Sukhu, is aimed at improving efficiency, modernising services and easing the financial burden on the state-run tourism corporation, which operates dozens of hotels across the hill state.
According to an official communication issued from HPTDC’s corporate office in Dharamshala on March 6, 2026, the corporation has begun the process of outsourcing the management of selected hotels located in key tourist destinations.
In total, the eight properties together account for more than 140 rooms — or “room inventory” in hospitality industry terminology — which private operators will be able to commercially manage and sell once the model is implemented.
8 Hotels Identified for Private Operation
The hotels proposed to be run by private players include:
- Hotel Lake View – Bilaspur (25 rooms)
- Hotel Mamleshwar – Chindi (10 rooms)
- Hotel Apple Blossom – Fagu (around 20 rooms)
- Hotel Chanshal – Rohru (14 rooms)
- Hotel Sarvari – Kullu (18 rooms)
- Hotel Old Roscommon – Kasauli (20 rooms)
- Hotel Shiwalik – Parwanoo (20 rooms)
- Hotel Giriganga – Kharapathar (17 rooms)
These hotels are mid-sized tourism properties with room capacities ranging from 10 to 25 rooms. Many of them are located in well-known tourist destinations but require upgrades in facilities, marketing and operational management.
Why the Government Is Taking This Step
HPTDC currently operates around 55 hotels and tourism units across Himachal Pradesh and employs more than 1,600 staff members. However, several of these properties have reportedly been running at persistent operational losses, creating financial pressure on the corporation and the state government.
Officials believe that private participation could help improve operational efficiency and tourist services. The expected benefits include professional hotel management, improved infrastructure, stronger marketing strategies and higher occupancy levels.
Under the proposed model, ownership of the hotels will remain with the state government while private operators will be responsible for day-to-day operations under contractual agreements.
Facilities in These Hotels
Many of these properties already offer basic tourism infrastructure such as restaurants and bars, conference halls, dormitories for group travellers, parking facilities and landscaped premises.
For instance, Hotel Lake View in Bilaspur includes a conference hall with a seating capacity of about 125 people along with dormitory accommodation, giving it potential for group tourism, meetings and events.
A Wider Debate Over Public Assets
The move has also sparked debate over the future of public tourism assets. Critics argue that leasing state-run hotels could gradually lead to the privatisation of government-owned hospitality infrastructure, while supporters say professional management is necessary to make these properties competitive in a rapidly expanding tourism market.
Similar models have been adopted in several parts of India and globally, where governments retain ownership of tourism assets but allow private hospitality companies to operate them in order to improve service quality and financial sustainability.
What Happens Next
The proposal has been formally communicated by the HPTDC management to the state government, and the next steps are expected to include the process of identifying private operators and finalising operational agreements.
If implemented, the plan could significantly reshape the management of Himachal’s tourism infrastructure — influencing not only the finances of HPTDC but also the future role of the public sector in the state’s hospitality industry.
