30-year management / renovation lease period; e-procurement tenders to close on Mar. 15

Mysuru: Following the State Government’s decision to lease the iconic Lalitha Mahal Palace Hotel, built by the Maharajas of Mysore, to a private company, the tender process is  now underway.

Currently managed by Jungle Lodges and Resorts, a unit of the Karnataka State Tourism Development Corporation (KSTDC), the State Cabinet, chaired by Chief Minister Siddaramaiah, recently approved the move to lease the Palace Hotel to a private entity.

In this regard, Jungle Lodges and Resorts Limited has issued a global tender, with  Mar. 15 as the deadline. The hotel’s management will be awarded to the company that meets all tender conditions, qualifying in both financial and technical bids. Additionally, the financial credibility of the tender-winning company will undergo thorough scrutiny.

Technical requirements

As part of the technical bid requirements, bidders must submit a No Objection Certificate (NOC) related to any previous management of the property. Sources told Star of Mysore that the lease agreement would be finalised only after verifying the company’s eligibility to operate the Lalitha Mahal Palace Hotel.

To ensure transparency, the State Government is conducting the tender process through its e-procurement system. Companies participating in the bid must submit an Earnest Money Deposit (EMD) of Rs. 25 lakh. The tender value has been set at Rs. 3.76 crore.

The Lalitha Mahal Palace Hotel, the second-largest palace in the city, was leased to the India Tourism Development Corporation (ITDC) in 1973. In 2018, it was handed back to the Karnataka Government, which later transferred its management to Jungle Lodges and Resorts Limited.

Now, with Jungle Lodges and Resorts currently overseeing operations, the Government has decided to lease the property to private entities.

Earlier, there was also a proposal at the Government level to hand over the Lalitha Mahal Palace to the Taj Group of Hotels.

However, the Taj Group withdrew from the proposal due to various conditions imposed by the Government. Meanwhile, the Indian Hotels Company Ltd. (IHCL), which owns the Taj brand, has signed  an agreement with DM South India Hospitality to operate a luxury hotel in Mysuru. This deal involves the building currently housing the Radisson Blu Plaza Hotel on M.G. Road, with the agreement set to take effect from Apr. 1.

A preferred choice among foreign tourists

Lalitha Mahal Palace remains a favourite among international visitors to Mysuru. The hotel offers a range of amenities, including traditional tonga rides and curated shopping experiences for Mysore silk sarees.

At night, the illuminated Palace presents a breathtaking spectacle. Nestled in lush greenery with a panoramic view of Chamundi Hill, a stay at this historic palace is regarded as a mark of prestige.

Commissioned on Nov. 18, 1921, by Nalwadi Krishnaraja Wadiyar, the Lalitha Mahal Palace was built to host British dignitaries, including the Viceroy of India. The grand white Palace spans 81 acres, including 51 acres and 15 guntas donated by the Maharajas.

After Maharaja Jayachamaraja Wadiyar signed the Instrument of Accession, the property was transferred to the Government, initially serving as a guest house, inaccessible to the public.

In 1974, the ITDC assumed control, expanding the hotel from 22 rooms to 54 and attracting distinguished guests such as Prime Minister Narendra Modi and Prince Charles.

Among the rooms at the hotel, the ones with princely proportions are ‘Heritage Classic Suite,’ ‘Duplex Suite,’ ‘Vicerine Suite’ and the ‘Viceroy Suite.’ All of them have high ceilings with plenty of natural light, period furniture, four poster beds, deep velvet covered arm chairs and gilt-framed Belgian Mirrors.

The huge and inspiring bathrooms of all the suites are equipped with original Shanks of Scotland (now Armitage) plumbing fixtures.

Architecturally, the palace draws inspiration from St. Paul’s Cathedral in London, making it a stunning blend of European and Indian influences.

Renovation must preserve hotel’s heritage character

The Lalitha Mahal Palace Hotel is being leased out for 30 years, with the tender process currently underway. Mar. 15 is the last date for participation. The number of bidders cannot be disclosed at this stage.

The company that wins the tender will be responsible for both renovating and maintaining the heritage hotel. Under the lease agreement, an annual lease payment must be made to the State Government, with the amount increasing each year.

Since it is built in a traditional architectural style, the renovation must preserve its heritage. Any modifications will require approval from the Department of Archaeology, Museums and Heritage and the company must adhere to its guidelines throughout the process. The lease will only be granted to a company that fully complies with these conditions.

— Prashant Shankhinamath, Managing Director, Jungle Lodges and Resorts Limited