Himachal government holds e-auction for Wildflower Hall Hotel, receives record bid of 47.1 per cent revenue

Oct 30, 2026

Shimla (Himachal Pradesh) [India], October 31 : The Himachal Pradesh government held an e-auction for granting license rights for the operation and management of the prestigious Wildflower Hall Hotel in Shimla, which resulted in a record bid of 47.1 per cent of the annual gross revenue, CM Sukhvinder Singh Sukhu said on Friday.
In a post on X, CM Sukhu mentioned that the state government has received approximately 400 crore rupees in cash for the hotel. 
The Chief Minister also revealed that the hotel is expected to generate monthly revenue of approximately 3 crore rupees under the 35-year license period. 
Additionally, the state has secured an upfront license fee of 24 crore rupees and a commitment of atleast 50 crore investment for the hotel property.
The Chief Minister further asserted that the government has ensured full ownership and control over the hotel land and property, the joint venture company, and the associated assets and rights.
"The Himachal government has successfully completed the competitive e-auction for granting license rights for the operation and management of the prestigious Wildflower Hall Hotel in Shimla. This resulted in a record bid of 47.1% of the annual gross revenue, An estimated revenue of approximately 3 crore rupees per month is expected during the 35-year license period, with a 3% annual increase. Over this period, a total revenue of approximately 2,000 crore rupees is anticipated. Additionally, an upfront license fee of 24 crore rupees and a commitment to invest at least 50 crore rupees in the hotel's property have been secured. The state government has also received approximately 400 crore rupees in cash.The government has ensured full ownership and control over the hotel's land and property, the joint venture company, and the associated assets and rights," said CM Sukhu. 
Earlier on October 14, 2025, the Mashobra Resort Limited (MRL) Company received a total amount of Rs 401 crore from the Wildflower Hall property, establishing the Himachal Pradesh government as the sole owner of the company, said an official release.
the High Court of Himachal Pradesh ordered that the Himachal Pradesh government has become the sole owner of the bank balances, shareholdings and 50 per cent of the advance against capital of the Joint Venture Company (JVC). 
As per the High Court's decision dated October 14, the bank balances of approximately Rs 320 crore belonging to JVC were supposed to be transferred to the state government. In addition, the Court has ordered the payment of Rs 25 crore to the State as per the Arbitral award. 
A spokesman of the State government said that the legal battle was sub judice for almost 30 years, but due to the special intervention and sufficient efforts of Chief Minister Sukhvinder Singh Sukhu, the Apex Court vide its order dated February 20, 2024, has earlier transferred the possession and ownership of the entire Wildflower Hall property in favour of the State. 
The State government subsequently completed the physical possession and ownership of the property on March 31. He stated that the State Government fought this case vigorously in court, with the assistance of the country's leading lawyers, and secured a victory in the interest of the state's people. He said that earlier, the State was not receiving any financial returns from this property, but now the State is yielding a positive outcome attributed to the proactive efforts of the present State Government.

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