HPTDC Chief Raises Concerns Over Plan to Privatise Eight Himachal Hotels

Shimla, April 2026: The Chairman of Himachal Pradesh Tourism Development Corporation (HPTDC), RS Bali, has raised concerns over the state government’s decision to lease out eight loss-making or non-operational hotels to private operators, emphasizing the need to prioritise infrastructure upgrades instead. The move comes amid ongoing efforts to strengthen the state’s tourism ecosystem and improve asset performance.

Speaking to media, Bali clarified that while he is not opposing the government’s decision, he does not consider the privatisation initiative a positive development for the corporation. He stated that improving existing infrastructure and modernising properties would be a more sustainable approach to increasing tourist inflow and enhancing revenue generation.

Concerns Over Leasing Strategy

The Himachal Pradesh government has decided to transfer eight underperforming or idle HPTDC hotels to the private sector, aiming to improve operational efficiency and reduce financial burden. However, Bali noted that such a step should not overshadow the importance of strengthening the corporation’s own capabilities.

He stressed that the focus should remain on revitalising HPTDC-owned properties through renovation and service upgrades rather than relying solely on private sector intervention. According to Bali, improved infrastructure would naturally attract more visitors and contribute to higher occupancy levels across the portfolio.

The HPTDC board of directors has also expressed reservations regarding the leasing decision, indicating internal concerns about the long-term implications of handing over public tourism assets to private operators.

₹250 Crore Renovation Plan Approved

As part of efforts to enhance property standards, HPTDC had proposed a renovation plan requiring an estimated investment of ₹250 crore. The proposal has received approval from Chief Minister Sukhvinder Singh Sukhu, marking a significant step toward upgrading the corporation’s hotel infrastructure.

Bali expressed confidence that modernised facilities would lead to a measurable increase in tourist arrivals and overall business performance. The investment is expected to focus on improving guest amenities, upgrading interiors, and enhancing operational efficiency across key properties.

The renovation plan is positioned as a strategic initiative to reposition HPTDC hotels in a competitive market where travellers increasingly prioritise quality, comfort, and service standards.

Revenue Growth and Performance Trends

Highlighting recent performance, Bali noted that HPTDC has recorded growth in turnover, rising from ₹78 crore during the previous administration to ₹100 crore in the first year of his tenure. The increase reflects improved operational management and a gradual recovery in tourism demand.

This growth trajectory, he suggested, underscores the potential of HPTDC properties when supported by targeted investments and strategic management. The chairman indicated that further improvements could be achieved through continued focus on infrastructure development rather than asset divestment.

The corporation’s financial performance remains closely linked to tourism trends in Himachal Pradesh, a state known for its strong domestic travel demand driven by hill stations, pilgrimage sites, and seasonal tourism.

New Five-Star Project Under Development

In parallel with renovation efforts, HPTDC is also investing in new developments aimed at enhancing its premium offerings. A five-star hotel project valued at approximately ₹180 crore is currently under construction on the banks of Baner Khad in Nagrota Bagwan.

The project is intended to strengthen HPTDC’s positioning in the upscale segment and attract higher-spending travellers. By expanding its portfolio with modern, high-quality assets, the corporation aims to compete more effectively with private sector operators.

The development reflects a broader strategy to diversify HPTDC’s offerings while maintaining its role as a key player in the state’s tourism infrastructure.

Balancing Public Assets and Private Participation

The debate over leasing hotels highlights a broader policy challenge faced by state-run tourism bodies: balancing the need for financial sustainability with the preservation of public assets. While private sector participation can bring operational efficiencies, concerns remain about long-term control and brand identity.

Bali’s remarks indicate a preference for a hybrid approach that prioritises internal strengthening alongside selective partnerships. By focusing on renovation, service improvement, and strategic investments, HPTDC aims to enhance its competitiveness without fully relinquishing control over key properties.

As Himachal Pradesh continues to position itself as a major domestic tourism destination, decisions regarding asset management and infrastructure development are expected to play a critical role in shaping the sector’s future trajectory.