Finally, Tirupati Haritha hotel set to go private

Tirupati: After years of stalled efforts and incomplete construction, the long-awaited Rs.17 crore Alipiri hotel project by the Andhra Pradesh Tourism Development Corporation (APTDC) is finally set to open its doors under private management. It was learnt that Mrugavani Resorts has official-ly taken over the lease, marking the end of a decade-long search for a viable operator to bring this hotel to fruition.

Situated in an extent of 1.03 acres at Alipiri, the site is ideally located between Ruia Hospital and the Alipiri footpath entrance, offering guests a stunning view of the Tirumala Hills. Initially proposed in 2013, the project included plans for 110 rooms, a 200-seat restaurant, dormitory-style accommodations, a conference hall and space for APTDC office. It has a huge parking area where some 100 cars can be parked. Despite an initial investment of Rs.11 crore by 2016, the project stalled due to insufficient funds and recurring budget setbacks.

For years, APTDC explored options to complete and maintain the facility on its own, expecting the hotel to generate revenue upwards of Rs.5-6 crore annually with potential profits around Rs 3 crore. Yet repeated attempts to secure funds or interest from hotel operators failed to ma-terialise as the hoteliers tried to offer a meagre amount to get a hot cake. In 2018, the corpora-tion considered investing an additional Rs 10 crore to finish construction but could not secure budget approval from the state government.

In a significant turn in the early 2019, APTDC nearly finalised a deal with The Indian Hotels Company Limited (IHCL) of the Tata Group, which operates renowned brands such as Taj and Vivanta.

However, despite early steps and a formal letter of intent, the project once again faced delays, leaving the incomplete hotel in limbo. As such, the fate of the incomplete structure was hang-ing in balance for the last 7-8 years.

Now, Mrugavani Resorts has stepped in as the new lessee, committing to complete construc-tion and manage operations. Under the agreement, the resort group will pay APTDC an annual lease of Rs 1 crore and will be responsible for completing all pending construction. Sources indicate that Mrugavani Resorts is currently securing necessary permits to expedite construc-tion and bring the hotel into operation.

It is worth noting that in earlier attempts to lease out the property, APTDC received offers of up to Rs 3 crores per annum as lease rent, which were declined by the corporation. However, dur-ing the previous YSRCP government, APTDC agreed to a lease rent as low as Rs.1 crore per an-num, a decision that raised many eyebrows and sparked concerns about the rationale behind the significant reduction.

While the move has drawn mixed reactions, with some expressing regret over APTDC’s lost opportunity to manage the property directly, the spotlight is now on Mrugavani Resorts to see if they can swiftly transform this promising site into a flourishing hospitality venture.