Lok Sabha Question No. 3056 (UNSTARRED), answered on 2016-12-05
Subject: Selling of ITDC Hotels
Ministry: TOURISM
Asked by: JAYADEV GALLA

## GOVERNMENT OF INDIA

## MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.3056 ANSWERED ON 05.12.2016

## SELLING OF ITDC HOTELS

## 3056. SHRI JAYADEV GALLA:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government is planning to sell most of the ITDC hotels in the country;
- (b) if  so,  the  details  of  such  hotels  and  the  process  adopted  for selling of these hotels;
- (c) whether  several  ITDC  hotels  have  been  running  in  huge  loss for the last five years;
- if  so,  the  details  thereof,  year-wise  and  hotel-wise  and  the
- (d) reasons therefor; and
- (e) the details  of the amount of money expected to be raised by the Government through the sale of the said hotels?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (DR. MAHESH SHARMA)

the

- (a) to (b): The Government is in process of transferring following hotels/properties to the concerned State Governments:
- (i) Hotel Lalitha Mahal Palace, Mysore to the Government of Karnataka.
- State
- (ii) Hotel  Jaipur  Ashok,  Jaipur  to  the  State  Government  of Rajasthan.
- (iii)   Hotel Lake View Ashok, Bhopal to the State Government of Madhya Pradesh.
- (iv) Hotel Brahmaputra Ashok, Guwahati to the State Government of Assam.
- (v) Hotel Donyi Polo Ashok, Itanagar to the State Government of Arunachal Pradesh.
- (vi) Hotel Pondicherry Ashok, Pondicherry to the Government of Puducherry.

State

- (vii)   Hotel Patilputra Ashok, Patna to the State Government of Bihar.

In  association  with  the  State  Government  of  Odisha,  the Government has decided to lease out or sell Hotel  Kalinga Ashok, Bhubaneswar.

Hotel  Ranchi  Ashok,  Ranchi  is  to  be  transferred  to  the  State Government of Jharkhand, however reply from State Government of Bihar is still awaited.

Hotel  Janapath,  New  Delhi  is  to  be  leased  out  for  long  term basis in consultation with Ministry of Urban Development, Government of India.

(c) & (d): Some of the ITDC hotels have incurred losses during any of  the  last  five  years  and  details  of  these  hotels  are  given  in Annexure.

The main reason for losses are: global recession, stiff competition from new and modern hotels, increase in available room inventory/increasing  wage  cost,  hike  in  power  and  fuel  cost,  nonrenovation of rooms, etc.

(e): The  transfer/lease  of  the  hotels  is  a  long  drawn  process.  As these  hotels  are  being  transferred  to  State  Governments  or  to  be leased out, any estimation of sale proceeds may not be possible.

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## ANNEXURE

STATEMENT  IN  REPLY  TO  PARTS  (c)  AND  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO.3056 ANSWERED ON 05.12.2016 REGARDING SELLING OF ITDC HOTELS.

(Rs.  in Lakh )

| Sr. No.   | Name of the Hotel                        | 2015-16              | 2014-15              | 2013-14              | 2012-13              | 2011-12              |
|-----------|------------------------------------------|----------------------|----------------------|----------------------|----------------------|----------------------|
|           |                                          | Net Profit/ Loss (-) | Net Profit/ Loss (-) | Net Profit/ Loss (-) | Net Profit/ Loss (-) | Net Profit/ Loss (-) |
| 1.        | Hotel Ashok, New Delhi                   | 940.03               | 28.39                | (-)1363.48           | (-)1027.44           | (-) 675.49           |
| 2.        | Hotel Jaipur Ashok, Jaipur               | (-) 157.69           | (-) 239.48           | (-) 267.50           | (-) 401.26           | (-) 290.84           |
| 3.        | Hotel Jammu Ashok, Jammu                 | (-) 158.61           | (-) 201.79           | (-) 131.39           | (-) 109.46           | (-) 94.89            |
| 4.        | Hotel Kalinga Ashok, Bhubaneswar         | (-) 173.77           | (-) 317.30           | (-) 310.09           | (-) 281.29           | (-) 247.65           |
| 5.        | Hotel Lalitha Mahal Palace Hotel, Mysore | 16.26                | (-) 140.40           | (-) 117.86           | (-) 78.11            | (-) 80.08            |
| 6.        | Hotel Patliputra Ashok, Patna            | 247.44               | (-) 72.08            | 52.64                | 144.10               | 175.37               |
| 7.        | Hotel Bharatpur Ashok, Bharatpur         | (-) 22.09            | (-) 65.00            | (-) 69.90            | (-) 85.18            | (-) 94.13            |
| 8.        | Hotel Lake View, Bhopal                  | (-) 48.45            | 15.53                | 72.78                | 104.93               | 94.79                |
| 9.        | Hotel Donyi Polo Ashok, Itanagar         | 7.31                 | (-) 0.93             | 32.84                | 7.13                 | 5.42                 |
| 10.       | Hotel Pondicherry Ashok, Puducherry      | (-) 20.15            | (-) 46.95            | (-) 23.36            | (-) 20.52            | (-) 39.36            |
| 11.       | Hotel Brahamputra Ashok, Guwahati        | (-) 155.49           | (-) 125.20           | 39.90                | (-) 35.22            | (-) 6.62             |
| 12.       | Hotel Ranchi Ashok Ranchi                | (-) 168.12           | (-)106.71            | (-) 96.25            | (-) 95.26            | (-) 57.58            |
| 13.       | Hotel Uttkal Ashok, Puri                 | (-) 197.42           | (-)69.94             | (-) 58.62            | (-) 61.40            | (-) 60.24            |

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