Wildflower Hall Shimla: Oberoi Group Secures 35-Year Lease Of Heritage Hotel

The Oberoi Group, through East India Hotels Limited (EIHL), will continue to operate and manage the iconic Wildflower Hall near Shimla for another 35 years. The Himachal Pradesh government has awarded the group the licence to operate the luxury heritage hotel after it submitted a record bid of 47.1 per cent of the hotel's annual gross revenue.

Located in Chharabra, around 12 km from Shimla, Wildflower Hall has been managed by EIHL for nearly four decades. The latest agreement follows a competitive e-auction conducted by the state government, which had invited tenders in June 2026 for the property's operation, management and maintenance.

According to Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu, the agreement is expected to generate approximately INR 2,000 crore in revenue for the state over the 35-year licence period.

Himachal Pradesh To Earn INR 2,000 Crore Over 35 Years

Announcing the outcome of the e-auction, Chief Minister Sukhvinder Singh Sukhu said the government expects to earn approximately INR 3 crore per month from the property, with a 3 per cent annual increase over the licence period.

In addition to the revenue share, the agreement includes an upfront licence fee of INR 24 crore and a commitment from the Oberoi Group to invest at least INR 50 crore in the hotel's property. The state government has also received approximately INR 400 crore in cash through the property, according to the Chief Minister.

The government has clarified that the agreement does not involve the transfer of ownership. The land, hotel property, joint venture company, associated assets and rights will remain under the full ownership and control of the Himachal Pradesh government. The new arrangement grants EIHL the rights to operate and maintain the hotel.

A New Chapter

The latest agreement comes after nearly 25 years of legal disputes over the ownership and management of Wildflower Hall. The partnership between the state government and EIHL was terminated in March 2022 over alleged contractual violations, leading to a prolonged legal battle that went from the Himachal Pradesh High Court to the Supreme Court.

In February 2024, the Supreme Court ruled in favour of the Himachal Pradesh government and directed that ownership and control of the property be restored to the state. The government officially regained control on March 31, 2025.

Following this, the Department of Tourism and Civil Aviation invited fresh tenders for the hotel's operation and maintenance. A pre-bid conference was held in July 2026, ahead of the competitive e-auction.

The state government has described the latest arrangement as an important step towards generating revenue from the property while retaining ownership of its land and assets.

The Story Behind The 123-Year-Old Wildflower Hall

Set at an altitude of 8,250 ft, Wildflower Hall is one of India's best-known luxury mountain resorts. Spread across 77,471 sq m, the property has 85 rooms, a spa, a swimming pool, a gymnasium, and banquet facilities. Its grounds are also home to more than 2,200 trees, most of them mature deodars.

The property's history dates back to the late 19th century, when it was owned by GHM Batten, private secretary to the Earl of Lytton. After the original building was destroyed in a fire, it was reconstructed by Batten. Lord Kitchener later acquired the lease, and the property eventually changed hands before being developed into a three-storey hotel with 37 rooms in 1925.

After Independence, the property was taken over by the Centre and used as an agricultural school until 1973. It was subsequently handed over to the Himachal Pradesh Tourism Development Corporation for hotel operations.

The building was destroyed in another fire in 1993, following which the state government invited global tenders to redevelop it as a five-star hotel. This led to the association with East India Hotels Limited and the creation of Mashobra Resorts Limited, through which the property was managed.

With the new 35-year agreement, Wildflower Hall enters another chapter in its long history, with the Oberoi Group returning as its operator under a fresh arrangement with the Himachal Pradesh government.

(With inputs from various sources)

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