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    Tata's offer to run Mysuru's iconic Lalitha Mahal Palace Hotel

    Synopsis

    The subject came up in a virtual meeting that chief minister BS Yediyurappa had with Tata Sons chairman N Chandrasekaran and other top executives of the group last week on opportunities available for investments in Karnataka.

    Lalith PalaceAgencies
    The state tourism department has been mulling transferring management of the heritage property to a private player on a lease-basis. “Now that the Covid-19 cases are dropping, we are looking at it,” TK Anil Kumar, principal secretary, tourism, told ET.
    The Tata Group has offered to run the iconic Lalitha Mahal Palace Hotel in Mysuru currently managed by state-owned Jungle Lodges and Resorts (JLR).

    The subject came up in a virtual meeting that chief minister BS Yediyurappa had with Tata Sons chairman N Chandrasekaran and other top executives of the group last week on opportunities available for investments in Karnataka.

    The salt-to-software conglomerate expressed its interest in the 100-year-old heritage hotel property that the state government is keen to hand over to a private player on a management contract basis because JLR’s expertise does not extend to running a heritage hotel, officials privy to the discussions told ET.

    Yediyurappa heard them but did not offer his comments as the subject fell in the domain of policy, they said.

    “Any response to the Tatas at this point may sound like an assurance,” a senior state government official said. “Obviously, the government cannot favour any one business group. If the government were to take the idea forward, then it will have to float a request for proposals (RFP) from interested bidders.”

    Puneet Chhatwal, managing director at the group’s listed firm Indian Hotel Company (IHCL), briefed the chief minister about the track record they have established in managing palace properties in places such as Udaipur, Jaipur, Jodhpur, Gwalior and Hyderabad, sources said.

    IHCL declined to comment.

    A formal proposal to this effect from the Indian Hotels may lead to some official-level deliberations in Bengaluru, and some action on the policy front, sources said.

    Built by then Mysuru Maharaja Krishnaraja Wadiyar IV at the foot of the Chamundi Hills to host his most important guest, the Viceroy of India, the landmark hotel — reminiscent of royal splendours of the erstwhile kingdom — has 54 suites.

    It was in the custody of the India Tourism Development Corporation (ITDC) for more than four decades before it handed it over to JLR in 2018.

    The state tourism department has been mulling transferring management of the heritage property to a private player on a lease-basis. “Now that the Covid-19 cases are dropping, we are looking at it,” TK Anil Kumar, principal secretary, tourism, told ET.

    “We may float a tender in about a month’s time.”

    The idea is to lease out maintenance for a 10-year period.

    “Several hoteliers have shown interest in taking over the management,” Kumar said. “Let us see how they respond to our tender.”


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