Himachal Pradesh Takes Over Wildflower Hall, Ensures Smooth Transition
In a notable move, the Himachal Pradesh government has officially taken possession of the luxury hotel Wildflower Hall in Mashobra, Shimla, following a Supreme Court order. To ensure a seamless transition, the state has temporarily allowed EIH Ltd, the hospitality arm of the Oberoi Group, to continue managing the property until a new operator is selected through a competitive bidding process.
The Supreme Court’s ruling on February 20, 2024, upheld a Himachal Pradesh High Court order directing EIH Ltd to vacate and hand over the five-star property to the state government by March 31, 2025. The state met the deadline and assumed control of the hotel, which is valued at around ₹800 crore, including its prime forested land near the popular tourist destination Kufri.
To avoid disruption for guests, the state government, in a letter dated April 1, 2025, allowed EIH Ltd to continue providing operation and management services until a new operator is selected via an e-auction or competitive bidding process. “This decision is in the interest of the hotel’s guests and to maintain operational continuity, which will also benefit the state financially,” the company stated in a regulatory filing. Wildflower Hall, known for its 84 luxury rooms, sees peak occupancy during the summer season, making uninterrupted operation crucial for tourism revenue.
The takeover concludes a 20-year legal dispute between the Himachal Pradesh government and EIH Ltd over the property’s ownership. The state argued that the land, originally part of a heritage property linked to Lord Kitchener, was leased under conditions that were allegedly violated.
With the Supreme Court’s verdict, EIH Ltd’s shareholding in Mashobra Resort Ltd (MRL), the entity that operated Wildflower Hall, will now be transferred to the state government. The final valuation of shares will be determined by the Himachal Pradesh High Court.
The state government has given EIH Ltd a three-month window to participate in the upcoming bidding process if it wishes to regain operational rights. However, the final decision will depend on the auction outcome. Wildflower Hall, nestled amidst lush deodar forests, is one of Shimla’s most prestigious hospitality assets. Its handover is a significant development for Himachal Pradesh’s tourism sector, with the state aiming to maximize revenue from the property while ensuring its legacy as a luxury destination continues under new management.
