Indian government agency Niti Aayog has urged the Ministry of Tourism of India to perform a structural audit on the Ashok Hotel in Chanakyapuri, New Delhi, the Times of India (TOI) has reported.
This step is followed by the government’s plans to lease the five-star Ashok Hotel to a private-owned hospitality firm for 30 years, extendable by an additional 30 years.
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According to the TOI, the winning bidder will be required to spend roughly Rs5bn ($61m) to renovate the hotel and the government expects to generate approximately Rs100bn ($121m) over the first 30 years of the lease.
The winning bidder may be licensed to commercially develop a 1.8-acre land as well.
Ashok Hotel features a total of 550 rooms, which includes 389 guestrooms, 161 suites and a presidential suite.
According to the TOI, sources said: “Niti Aayog has sought a structural audit of the almost seven-decade-old building. Work on the request for proposal and other bid documents is on.”
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By GlobalDataAshok’s divestment roadshow brought attention from all major companies, including Taj Hotels, DLF, JLL, Hilton, Wyndham Hotels and Brookfield-backed HLV.
The hotel is receiving considerable attention as it is in an ideal location in the capital’s diplomatic area.
Furthermore, an additional 6.3 acres of Ashok’s property can be developed into serviced apartments.
