Karnataka gives nod to invite tenders for private operators to run Mysore’s iconic Lalitha Mahal Palace

The Lalitha Mahal Palace hotel is currently operated by Jungle Lodges and Resorts, a state government enterprise.

The palace was run as a heritage hotel from 1974 to 2018 by the Ashok Group for the Indian Tourism Development Corporation before it was handed over to the state government in 2018. The state government has found the running of the heritage hotel a burden.

“The maintenance, management, repairs and modernisation of the Lalitha Mahal Palace Hotel in Mysore will be handed over from the Jungle Lodges and Resorts to private parties – while preserving the palace as a heritage property – following a tender process to appoint a hotel operator. The cabinet has accorded the permission,” Law Minister H K Patil said on Thursday.

The minister mentioned that the heritage point will not be lost in the process of modernisation.

Patil said it was difficult for the government to manage five-star hotels as it is a huge property and occupancy is low. “In this background we have decided to give it to private operators. It requires a huge investment. Our detailed project reports suggest it could cost Rs 40 – Rs 50 crore or higher,” the law minister said.

“Right now JLR is not running it at a loss but we are not making a profit. The facilities are also limited including the number of rooms,” he added.

The Lalit Mahal Palace was built in 1921 by the Maharaja of Mysore Krishnaraja Wodeyar IV as a place of residence for the British Governor General of India. It is modelled on the St Paul’s Cathedral in London and is the second largest palace in Mysore after the Maharajah’s palace.