ITDC properties to be transferred to state govts: Tourism Minister Mahesh Sharma

NEW DELHI: The government has initiated the process of transferring seven ITDC properties to state governments as part of its disinvestment plans, Rajya Sabha was informed today.

Hotel Lalitha Mahal Palace ( Mysore) will be transferred to Karnataka government, Hotel Jaipur Ashok to Rajasthan, Hotel Lake View Ashok (Bhopal) to Madhya Pradesh, Hotel Brahmaputra Ashok ( Guwahati) to Assam, Hotel Donyi Polo Ashok (Itanagar) to Arunachal Pradesh, Hotel Pondicherry Ashok to Puducherry and Hotel Patilputra Ashok ( Patna) to Bihar government, Union Tourism Minister Mahesh Sharma said in a written reply.

In association with the Odisha government, the Minister said the Centre has decided to lease out or sell Hotel Kalinga Ashok ( Bhubaneswar).

Hotel Ranchi Ashok will be transferred to the Jharkhand government, he said, adding that reply from state government in this regard is "still awaited".

Hotel Janpath, New Delhi will also be leased out for long term basis in consultation with Ministry of Urban Development, he said.

Some of the ITDC hotels that have incurred losses during 2015-16 included Hotel Kalinga Ashok (Bhubaneswar) (Rs 173.77 crore), Hotel Ranchi Ashok (Rs 168.12 crore), Hotel Jammu Ashok (158.61 crore) and Hotel Jaipur Ashok (Rs 157.69 crore).

Sharma said the main reasons for losses are global recession, stiff competition from new and modern hotels, increase in available room inventory and wage cost, hike in power and fuel cost, among others.

To improve profitability of ITDC hotels, he said the government has taken various steps including essential renovation/refurbishment/up-gradation work in a phased manner, advertising, aggressive sales and marketing in India and abroad through active digital marketing/travel portals, and participation in major travel marts and food festivals abroad, among others.