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Himachal Pradesh High Court Orders The Closure Of 18 Hotels Under HPTDC Due To Financial Challenges By Nov 25

Vrinda Arora

Due to financial challenges brought on by low occupancy rates, the Himachal Pradesh High Court has ordered the closure of 18 hotels held by the Himachal Pradesh Tourism Development Corporation (HPTDC).

Himachal Pradesh High Court Orders Hotel Closures

Justice Ajay Mohan Goel’s single-judge bench decision ordered properties to be closed by November 25, 2024. Further, the managing director of HPTDC is tasked with carrying out the order. The court emphasised the need to prevent squandering public funds on “white elephants” and pointed to low occupancy as the primary cause of the closure of many hotels, as reported by CNBCTV18.

Image Credit: Wikimedia Commons

Despite providing occupancy data for these properties over the previous three years, the court determined that HPTDC’s occupancy rates for 56 hotels have been “dismal” and that the business has not made any profit from these properties. The court stated that pertinent financial issues have been presented before it on a regular basis, acknowledging the financial burden that the state faces as a result of these properties’ continuous operation.

A minimum number of personnel will be retained for property upkeep, and the remaining staff will be redistributed as needed, according to the directive. In addition, the managing director of HPTDC must give a list of retired and deceased personnel for the purpose of paying outstanding dues and submit an affidavit attesting to closure. At the following session, the court also asks the corporation to report on the state of the debts owed by both public and private organisations.

Also Read: Inspired By Andaman & Nicobar Islands, Himachal Pradesh To Introduce Water Sports, Hiking Trails & More At Gobind Sagar Lake

List Of 18 Hotels To Be Closed In Himachal Pradesh

The hotels that are nearing their closure are from different parts of Himachal Pradesh, like Manali, Dharamsala, and more. Here’s the full list.

Also Read: Himachal Pradesh Imposes Four-Month Ban On Trout Fishing; Here’s Why

Have you visited any of these hotels in Himachal Pradesh?

Cover Image Credit: Wikimedia Commons

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