Bengaluru: Unable to bear the losses any more, Indian Tourism Development Corporation (ITDC) has decided to transfer Hotel Lalith Mahal in Mysuru back to the state soon.
"We are ready to take back the property that was leased to ITDC a long time ago. Our goal is to restore its past glory and run it profitably", Minister for IT/BT and Tourism Priyank Kharge told Deccan Chronicle. Recently, the Union government had decided to transfer back four ITDC managed star hotels across the country including the prestigious Lalith Mahal Palace which is situated 5 km from Mysuru city, to the respective governments.
Mr Priyank said there was a minor hitch in getting back the prized possession from ITDC and it would be sorted out during his next visit to Delhi. "Our government is eager to have this property and restore its past glory,” he said.
A few years ago, the state government took possession of Hotel Metropole and had been managing it successfully. This hotel had remained closed for many years after the lease period of ITDC lapsed. Subsequently, the government took over the property and is running it successfully.
It incurred a loss of Rs 80.18 lakhs in 2011-12, Rs 78.11 lakh in 2012-13, Rs 1.17 crore in 2013-14. But it managed to make a small profit of Rs 16.26 lakhs in 2015-16. The reasons for its losses are; low occupancy, high wages, expenditure on maintenance of the building and competition from other hotels.
Till the 1990s, Lalith Mahal had housed dignitaries like presidents, vice-presidents, prime ministers and foreign delegates. It hosted the historic Telugu-Ganga talks over sharing of river Krishna water among Karnataka, Andhra Pradesh and Maharashtra.
However, the hotel lost its grandeur due to mushrooming of star hotels across the city as well as the coming up resorts whose tariffs are adjustable depending on the purse of tourists unlike the prices fixed by ITDC.
The palace was built in 1921 on the orders of Nalvadi Krishnaraja Wadiyar, the Maharaja of Mysuru for the exclusive stay of the then Viceroy of India and and subsequently became a guest house for European guests of the Maharajas.
It is styled on the lines of St. Paul’s Cathedral in London and is one of the imposing structures in Mysuru city. The elegant palace which is pure white, was converted into a heritage hotel in 1974.
