Himachal Govt to Float Global Tender for Operation of Iconic Wildflower Hall After Winning Legal Battle

 In a significant post-litigation development, the Himachal Pradesh government has decided to float a global online tender for the operation and management of the world-renowned Hotel Wildflower Hall, a five-star luxury property located at Mashobra, about 13 km from Shimla, on the Hindustan-Tibet Road.

The decision was taken at a cabinet meeting chaired by Chief Minister Sukhvinder Singh Sukhu on Saturday. The Council of Ministers approved amendments to the tender conditions and directed that the entire bidding process be conducted transparently through MSTC Limited, the Government of India’s public sector e-commerce platform.

The move is aimed at ensuring "fair, competitive and global participation" from reputed hospitality operators.

The decision follows the state government’s complete acquisition of the property earlier this year after winning a prolonged legal battle against East India Hotels (EIH) Limited, the Oberoi Group’s parent company. The dispute over ownership and control of Wildflower Hall, valued at around Rs 500 crore, had been pending for nearly three decades.

In a landmark October 14, 2025 judgment, the Himachal Pradesh High Court declared the state the sole owner of Mashobra Resort Limited (MRL), the joint venture company that managed the property. The court ordered that the firm’s Rs 320 crore bank balance be transferred to the state exchequer and directed EIH to hand over its Rs 13 crore shareholding to the government.

EIH was permitted to reclaim only Rs 68 crore, half of its Rs 136 crore capital investment, while the remaining amount remained with the state as a financial gain.

The Supreme Court, through an order passed on February 20, 2024, had earlier upheld the state’s ownership claim, paving the way for Himachal Pradesh to take full possession of Wildflower Hall on March 31, 2025.

Spread across a hilltop estate surrounded by dense cedar and pine forests, Wildflower Hall was once the residence of Lord Kitchener, Commander-in-Chief of the British Indian Army.

Rebuilt and restored by the Oberoi Group in the late 1990s, it now stands as one of India’s most exclusive mountain resorts, boasting 85 luxury rooms, premium spa facilities, and panoramic Himalayan views. During the peak tourist season, room tariffs soar to Rs 1.75 lakh per night.

Currently, the hotel generates around Rs 1.75 crore in monthly revenue for the government, but officials expect a substantial rise in returns once the global tender attracts international hospitality chains.

With Himachal Pradesh facing a deep fiscal deficit, the government views this as a crucial step toward revenue diversification and asset monetization. Hospitality remains a vital pillar of the hill state’s economy, contributing significantly to employment, investment, and GDP growth.

By opening Wildflower Hall to global competition, the Sukhu-led government aims to reposition Shimla as a premier international tourism destination blending the grandeur of colonial heritage with the promise of sustainable, high-value hospitality.