The Oberoi Group will continue to manage the luxury Wildflower Hall hotel for the next three months under a new arrangement with the Himachal Pradesh Government, even as the original deadline for handing over the property expired on Monday.
The High Court had set March 31, 2025, as the deadline for the property’s return to the state government, marking the end of a two-decade legal battle that ruled in Himachal’s favour.
However, the court has been informed that both parties have agreed to extend the Oberoi Group’s operation for another three months.
The decision stems from the state government’s lack of expertise in managing a high-end hotel of this stature — one of the top properties being run by the Oberoi Group. Reliable sources indicate that the government aims at preventing revenue losses until the property is leased out to a new operator.
Meanwhile, the state has appointed a consultant to draft global bidding documents for leasing the property.
Facing financial constraints, the government is exploring all avenues to boost revenue, with tourism being a key focus.
In February 2024, the Supreme Court ordered the Oberoi Group’s East India Hotels Ltd (EIHL) to return Wild Flower Hall to the state government.
The state now seeks a top-tier hospitality firm to operate the property, ensuring substantial returns from this prime location nestled in pristine deodar forests.
This time, the government is proceeding cautiously, having learned from past missteps. Under the previous agreement with EIHL, the state didn’t get any substantial revenue despite the hotel being one of Oberoi’s most prime assets.
The conflict traces back to Mashobra Resorts Ltd, a joint venture between the EIHL and Himachal Government, formed to construct and operate the five-star hotel.
Before its destruction in a devastating 1993 fire, the century-old British-era building housed a hotel run by the HP Tourism Development Corporation.
The legal feud began in 2002 when the state government terminated its agreement with EIHL, citing breach of terms. What followed was a 20-year battle, culminating in court rulings and an arbitrator’s verdict in Himachal’s favour.
