The Oberoi Group, through East India Hotels Ltd (EIHL), has won a 35-year licence to operate and manage Wild Flower Hall, the heritage hotel at Chharabra, about 12 km from Shimla. The licence was awarded after a competitive e-auction by the Himachal Pradesh government, and was announced by Chief Minister Sukhvinder Singh Sukhu on 30 October–1 November 2026.

Record bid

EIHL offered 47.1% of annual gross revenue to the state — said to be the highest-ever such bid in India for a hotel licence.

The money

  • About ₹3 crore per month, escalating 3% a year
  • About ₹2,000 crore total over 35 years
  • Upfront licence fee: ₹24 crore, as per PTI and official-statement reports
  • Minimum investment commitment: ₹50 crore in the property

Ownership stays with the state

Ownership of the land, hotel, joint venture company (Mashobra Resorts Ltd), assets and rights stays with the Himachal Pradesh government. The government regained full control on 31 March 2025, after about 25 years of litigation — the Supreme Court ruled for the state in February 2024. About ₹400 crore in cash accruals were also returned to the state.

The hotel’s history

Wild Flower Hall is a 123-year-old heritage property and the former residence of Lord Kitchener. It was gutted by fire on 5 April 1993 and rebuilt as a five-star hotel. It sits at about 8,250 ft above sea level, and EIHL has managed it for nearly four decades.

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