ITDC to privatise operations of 8 hotels

All eight are loss-making properties leased to ITDC by state govts; privatisation will happen only if state govts agree

In a bid to improve the performance of India Tourism Development Corporation (ITDC), the Centre is considering a proposal to sub-lease eight loss-making hotels run by the hospitality chain, minister of state for culture and tourism Mahesh Sharma said in a written reply to the Rajya Sabha.

As ITDC has taken most of these from various state governments on lease, the Centre is in the process of securing approval from the respective governments. In cases where the state government is reluctant, the property will be given back to the state.

The hotels identified are five properties — Hotel Jaipur Ashok; Hotel Kalinga Ashok (Bhubaneswar); Hotel Jammu Ashok; an under-construction project in Gulmarg; and Lalitha Mahal Palace Hotel at Mysuru. The other three hotels, under joint venture, are: Hotel Brahmaputra Ashok (Guwahati); Hotel Lake View Ashok (Bhopal); and Hotel Ranchi Ashok.

After this process is over, ITDC will be left with major hotels such as The Ashok, The Janpath, and Samrat Hotel in Delhi.

BSE-listed ITDC reported a net profit of Rs 34.4 crore on revenue of Rs 472 crore in the year ended March. This is remarkably higher than the previous year’s profit of Rs 9.4  crore.

Hotels business is the largest contributor to the company’s revenue. ITDC is also into tours and travels, events, education (Ashok Institute of Hospitality and Tourism Management), and consultancy and engineering services, among others.