Tender floated to restore, operate and maintain the heritage Palace Hotel
Mysore/Mysuru: The State Government has begun the process of leasing out the Lalitha Mahal Palace Hotel in Mysuru, built by the Mysore Maharajas, for renovation, maintenance and long-term operation.
The tender process is currently underway, with Apr. 30 fixed as the last date for submission of bids.
Sources told Star of Mysore that the tenders have been floated this year through the State’s e-Procurement portal. Last year, though an announcement was made in March 2025 that global tenders would be invited, the process did not take off due to technical difficulties.
According to the latest tender notification, bidders must submit an Earnest Money Deposit (EMD) of Rs. 25 lakh, while the tender value has been fixed at Rs. 3.76 crore. The hotel will be leased for a period of 30 years.
Reports indicate that several companies have already submitted bids, with more expected to apply in the coming weeks. While multiple applications have reportedly been received, the exact number of bidders will be known only after the tenders are opened. Details of the financial bids will also be revealed at that stage.
PPP model
The hotel is being offered under a Public-Private Partnership (PPP) model, with overall ownership and control remaining with the State Government.
The Lalitha Mahal Palace Hotel, the second-largest palace in Mysuru, was leased to the India Tourism Development Corporation (ITDC) in 1973. In 2018, the property was handed back to the Karnataka Government, which subsequently entrusted its management to Jungle Lodges and Resorts Limited.
At present, Jungle Lodges continues to operate the hotel. However, the century-old structure has suffered from inadequate maintenance over the years, leaving some portions in a dilapidated condition. Parts of the building have sustained damage, with plaster peeling off in certain areas.
Rs. 50 crore restoration estimate
The Government had earlier constituted an expert committee to assess the renovation requirements and it estimated that restoration would cost Rs. 50 crore. Considering the financial burden involved, the Government decided to adopt the PPP model and lease the property for 30 years for renovation, maintenance and operation.
The company that eventually takes charge of the hotel will undertake renovation work under the supervision of the expert committee appointed by the Government. This is to ensure that the century-old palace retains its heritage character.
Lalitha Mahal Palace Hotel is not running under loss. The property continues to attract a steady flow of visitors, with foreign tourists showing particular interest. The hotel is operating smoothly without any major difficulties. — Prashanth, Managing Director, Jungle Lodges and Resorts Limited (JLR)
This post was published on April 9, 2026 6:44 pm