Financial, technical credentials, highest bid to determine successful bidder
Mysuru: The iconic Lalitha Mahal Palace Hotel in Mysuru is moving closer to private management, with Jungle Lodges and Resorts (JLR) expecting to complete the leasing process within the next four months.
The State Government, which took over the heritage property from the Centre, currently manages the hotel through JLR.
However, the ageing structure has suffered damage over the years, making its restoration and maintenance increasingly difficult. In view of the high cost of upkeep, the Government has decided to lease the property to a private operator.
JLR has floated a global tender inviting bids from companies to restore, maintain and operate the heritage hotel. The deadline for submitting bids, originally fixed for July 30, has now been extended for the third time.
Tender conditions revised
Along with the extension, JLR has revised certain tender conditions, clarifying the format of agreements and the licensing requirements. Interested companies have been advised to ensure their licences comply with the tender specifications and to carefully review the contractual terms before submitting bids.
Applications are being received through the State’s e-Procurement portal. While several firms have already submitted bids, officials have not disclosed either the number of applicants or their identities, as these details will be revealed only after the bids are opened.
Earlier, an Expression of Interest (EoI) seeking private participation through a 30-year lease had attracted responses from eight companies, indicating strong interest in operating the landmark property. The current tender requires bidders to furnish an earnest money deposit (EMD) of Rs. 25 lakh.
Officials have emphasised that Lalitha Mahal, one of Mysuru’s prominent tourist attractions, will retain its architectural character and that the Government is proceeding cautiously to ensure the heritage structure remains protected during the leasing process.
Determining eligibility
Authorities have made it clear that the lease will not be awarded solely to the highest bidder. Once the bids are opened, companies will undergo a detailed evaluation of their financial credentials and operational experience.
The assessment will examine the financial strength of each bidder, its experience in managing hotels and its track record in executing similar contracts. Any history of defaults, contractual violations or other irregularities could lead to disqualification, irrespective of the financial bid.
Officials said the multi-stage evaluation is intended to ensure that only credible and experienced operators are entrusted with managing the heritage property.
Two months for tender process
Officials are optimistic that the tender process itself will be completed within the next two months, although finalisation has taken longer than expected because of the need to comply with stringent procedural requirements.
After the submission deadline, bids will be opened electronically through the State’s e-Procurement portal, with digital signatures from authorised officials. The bids will then be scrutinised against the Government’s technical and financial eligibility criteria.
The lease will be awarded only to the bidder that satisfies all prescribed qualifications and fulfils the Government’s conditions.
No change in tender bid amount
Companies interested in leasing Lalitha Mahal Palace Hotel had sought certain concessions, including a reduction in the annual lease amount. Under the tender conditions, the successful bidder is required to pay an annual lease rent of Rs. 4.10 crore, with a 10 percent increase every year.
However, the JLR Board has decided not to revise the financial terms or the bid amount. We expect to complete the tender process within two months and finalise the lease to a private operator within the next four months.
— Prashanth Shankhinamath, Managing Director, Jungle Lodges and Resorts Ltd., Bengaluru
This post was published on July 21, 2026 7:30 pm