Lok Sabha Question No. 5563 (UNSTARRED), answered on 2018-04-02
Subject: Disinvestment of Hotels
Ministry: TOURISM
Asked by: KIRTI (JHA) AZAD

## GOVERNMENT OF INDIA

## MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.†5563 ANSWERED ON 02.04.2018

## DISINVESTMENT OF HOTELS

## †5563. SHRI KIRTI AZAD:

Will the Minister of TOURISM be pleased to state:

- the  number  of  Government  owned  hotels  in  the  country,
- (a) State/UT/location-wise;
- (b)
- whether some of them are running in losses;
- if  so,  the  details  thereof  and  the  reasons therefor along with the hotel-wise details of their performance during each of the
- (c) last three years and the current year;
- (d) the  measures  taken  by  the  Government  to  modernize  and make them profitable;
- (e) whether  there  are  proposals  for  disinvestment  of  the  loss making hotels of the country; and
- (f)
- if so, the details thereof?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (SHRI K.J. ALPHONS)

(a): At present, India Tourism Development Corporation Ltd. (ITDC), a Government of India undertaking under the administrative control of the Ministry of Tourism, is running the following hotels:-

- (i)
- (ii)
- (iii)
- (iv)
- (v)
- (vi)
- The Ashok Hotel, New Delhi
- Samrat Hotel, New Delhi
- Hotel Jammu Ashok, Jammu, Jammu & Kashmir
- Hotel Patliputra Ashok, Patna, Bihar
- Hotel Kalinga Ashok, Bhubaneswar, Odisha
- Lalitha Mahal Palace Hotel, Mysore, Karnataka
- (vii) Hotel Ranchi Ashok, Jharkhand, a joint venture company of ITDC and the State Government of Jharkhand
- (viii)  Hotel  Donyi  Polo  Ashok,  Itanagar,  Arunachal  Pradesh,  a joint venture company of ITDC and the State Government of Arunanchal Pradesh
- (ix) Hotel  Pondicherry  Ashok,  Puducherry,  a  joint  venture company of ITDC and the State Government of Puducherry
- (b) and (c): A  Statement  giving  details  of  the  hotels  which incurred losses in the past three years is at Annexure.

The main reason for the losses incurred have been competition  from  new  and  modern  hotels,  increase  in  available room inventory, increasing wage cost, hike in power and fuel cost, etc.

- (d): The  measures  undertaken  by  ITDC  to  modernise  its  hotels include  renovation  and  upgradation  of  rooms,  addition  of  new facilities,  tie-ups  with  Online  Travel  Agencies  for  online  room bookings, introduction of on-the-spot customer feedback, etc.
- (e) & (f): Under the disinvestment policy of the Government, it has been decided to transfer to the State Governments or go in for joint leasing  with  the  State  Government,  the  following  loss  making hotels/properties of ITDC:
- (i)      Hotel Lalitha Mahal Palace, Karnataka.
- (ii)
- Hotel Donyi Polo Ashok, Itanagar Arunachal Pradesh.
- (iii)    Hotel Pondicherry Ashok, Puducherry.
- (iv)    Hotel Patliputra Ashok, Patna, Bihar.
- (v)     Hotel Kalinga Ashok, Bhubaneswar, Odisha.
- (vi) Hotel Ranchi Ashok, Ranchi, Jharkhand.

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ANNEXURE

STATEMENT  IN  REPLY  TO  PARTS  (b)  AND  (c)  OF  LOK  SABHA UNSTARRED QUESTION NO.†5563 ANSWERED ON 02.04.2018 REGARDING DISINVESTMENT OF HOTELS.

| Sl. No.   | Name of Hotel                                       | Profit before tax (Amt. in Rs. Lakhs)   | Profit before tax (Amt. in Rs. Lakhs)   | Profit before tax (Amt. in Rs. Lakhs)   | Profit before tax (Amt. in Rs. Lakhs)   |
|-----------|-----------------------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
|           |                                                     | 2014-15                                 | 2015-16                                 | 2016-17                                 | 2017-18 (Upto Dec, 2017) (Un-audited)   |
| 1.        | Hotel Jammu Ashok, Jammu, Jammu &Kashmir            | (201.79)                                | (158.61)                                | (170.84)                                | (164.70)                                |
| 2.        | Hotel Patliputra Ashok Patna, Bihar                 | (72.08)                                 | 247.44                                  | 71.27                                   | 31.72                                   |
| 3.        | Hotel Kalinga Ashok Bhubaneswar, Odisha             | (317.30)                                | (173.77)                                | (109.86)                                | (136.29)                                |
| 4.        | Lalitha Mahal Palace Hotel Mysore, Karnataka        | (140.40)                                | 16.26                                   | 13.05                                   | 19.11                                   |
| 5.        | Hotel Ranchi Ashok, Ranchi, Jharkhand               | (106.71)                                | (168.12)                                | (211.08)                                | (137.57)                                |
| 6.        | Hotel Donyi Polo Ashok, Itanagar, Arunachal Pradesh | (0.93)                                  | 7.31                                    | (8.63)                                  | (22.46)                                 |
| 7.        | Hotel Pondicherry Ashok, Puducherry                 | (46.95)                                 | (20.15)                                 | 40.73                                   | 6.75                                    |

The Figures in (  ) represents loss.

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