HP High Court Orders Closure of Loss-Making HPTDC Hotels...

Shimla, November 19: The Himachal Pradesh High Court has dropped a bombshell on the Himachal Pradesh Tourism Development Corporation (HPTDC) by ordering the immediate closure of 18 loss-making hotels across the state.

The court single bench  headed by Ajay Mohan Goel took this drastic step after reviewing the abysmal occupancy data of the corporation's properties over the last three years, exposing their financial unviability.  

The occupancy stats, submitted by the HPTDC, painted a grim picture of its "flagship" properties.

Here's the reality check:  

- Hotel Pinewood, Barog** (30 rooms): Occupancy nosedived from 40.02% in 2022 to 36.84% in 2024.  
- Palace Hotel, Chail** (50 rooms): A mere 24.42% in 2023 and 26.62% in 2024.  
- Hotel Dhauladhar, Dharamshala** (27 rooms): Hovering at 34-37% occupancy over the years.  
- Hotel Kashmir House, Dharamshala** (11 rooms): Shockingly low at 16.36% in 2024.  
- Hotel Meghdoot, Kiarighat** (34 rooms): Struggling with just 16.56% occupancy in 2024.  

Even some of the sought-after tourist spots like Manali and Dalhousie couldn’t salvage the situation:  

- Hotel Log Huts, Manali** (20 rooms): 19-21% occupancy over three years.  
- **Hotel Kunzum, Manali** (47 rooms): Barely crossing 42% in 2024.  
- **Hotel Geetanjali, Dalhousie** (10 rooms): Just 25.42% in 2024.  

The court remarked that these properties, far from generating profits, are a burden on the state exchequer. 

With the government constantly pleading financial crunches in court, this wastage of public resources couldn't be ignored.  

The Hammer Falls

Effective November 25, 2024, the following hotels will shut their doors:  

1. Palace Hotel, Chail  
2. Hotel Geetanjali, Dalhousie  
3. Hotel Baghal, Darlaghat  
4. Hotel Dhauladhar, Dharamshala  
5. Hotel Kunal, Dharamshala  
6. Hotel Kashmir House, Dharamshala  
7. Hotel Apple Blossom, Fagu  
8. Hotel Chanderbhaga, Keylong  
9. Hotel Devdar, Khajjiar  
10. Hotel Giriganga, Kharapathar  
11. Hotel Meghdoot, Kiarighat  
12. Hotel Sarvari, Kullu  
13. Hotel Log Huts, Manali  
14. Hotel Hadimba Cottage, Manali  
15. Hotel Kunzum, Manali  
16. Hotel Bhagsu, McLeodganj  
17. Hotel Castle, Naggar  
18. Hotel Shivalik, Parwanoo  

The court directed HPTDC to retain only skeletal staff for property upkeep, transferring the rest to other pressing needs. Managing Director HPTDC has been tasked with ensuring compliance and reporting back on December 3.  

What's Next?

The court also sought details of superannuated and deceased Class-IV employees, to expedite pending dues from the savings generated by shutting these loss-makers.

Meanwhile, HPTDC has been told to recover dues from government and private entities and present a complete financial update in the next hearing.  

The High Court’s hard stance leaves no room for HPTDC to hide its inefficiencies.

With these iconic properties turning into white elephants, it’s a wake-up call for the tourism body to rethink its strategies.