UP initiated process to convert heritage buildings into hotels

Lucknow: The process of converting heritage buildings into five-star hotels has finally begun in Uttar Pradesh.

Tenders for four captivating Nawabi structures -- including Chhattar Manzil, Roshan-Uddaula Kothi, Kothi Gulistan-e-Iram, and Kothi Darshan Vilas -- are scheduled to be unveiled on November 7.

The state government is also preparing to initiate tenders for the transformation of Chunar Fort in Mirzapur, Barua Sagar Fort in Jhansi, Barsana Jal Mahal in Mathura, Shukla Talab in Kanpur Dehat, and Tikait Rai Baradari in Kanpur city into enchanting five-star heritage hotels.

Mukesh Meshram, principal secretary of the tourism and culture department, said: “Prominent players in the country’s hotel industry have expressed their keen interest in managing these heritage sites within the state. Renowned groups such as Nirvana Hotels, Oberois, MRS Group, Leela Group, Mahindra Group, and Ramada Group have all shown enthusiasm in overseeing these unique heritage hotels.”

The tender process aims to lease these heritage properties under the public-private partnership (PPP) model for a 30-year period, with the possibility of renewal for two terms, resulting in a maximum lease period of 90 years.

The successful bidder will undertake the development of these heritage properties based on a Design-Build-Finance-Operate-Transfer (DBFOT) framework.

Meshram outlined the selection criteria for the successful bidder, which will be determined by the Quality and Cost System (QCBS).

In this system, technical factors will carry 80 per cent of the weightage, while financial criteria will constitute the remaining 20 per cent.

The final adaptive reusage of each heritage property will be contingent on a comprehensive techno-economic business plan submitted by bidders to the tender evaluation committee.

This plan should advocate an economically viable proposal that justifies the property’s final purpose as a tourism unit.

Drawing inspiration from the success of Rajasthan, a state that has already converted over 200 heritage buildings into hotels, Uttar Pradesh aspires to replicate this model.

Meshram explained, “Just as we have seen a successful model in Rajasthan, which allows only privately-owned historical buildings to be converted into hotels, the state government will convert government-owned historical structures into hotels under the public-private partnership model.”

The operators will be expected to preserve the facades of these historic buildings, ensuring their authentic charm remains intact. Additionally, private investors will be responsible for financing the transformation of these monuments into true five-star establishments.