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APTDC tries again to lease its hotel near Alipiri
The incomplete hotel building of APTDC near Alipiri in Tirupati
- The corporation issues e-tenders recently to lease out 34 properties in the state in which the incomplete hotel in Alipiri is also one
- The fate of the hotel has been hanging fire since 2016 after it spent Rs 11 cr on its construction
- Now it wants to settle with lease rent instead of spending another Rs 16 cr on its completion
- The hotel in Srikalahasti and Wayside Amenity in Puttur are also put on for lease
Tirupati: After taking several turns, the incomplete huge hotel building of AP Tourism Development Corporation (APTDC) at a prime location near Alipiri now reached back to square one. The Corporation invited e-tenders to run 34 of its properties across the State recently for awarding licence to run them under operation and maintenance mode in which the 103 room and two halls Alipiri hotel was also included.
The fate of the hotel in 1.08 acre land opposite Ruia hospital has been hanging in balance for over six years. Out of an initial estimation of Rs 17 crore, APTDC spent Rs 11 crore on this and completed basic civil works before stopping them in 2016 itself. Since then it started taking various turns. The APTDC made futile efforts to lease out the hotel complex from 2016 as they did not get profitable bids.
If APTDC itself completes the hotel and maintains on its own it may earn a net profit of more than Rs 5 crore per annum and proves to be an assured revenue earning project. But, the corporation was somehow not interested in doing so as it needs to invest about Rs 15 crore to complete the project.
Though it mooted this idea too at one stage in 2018, within no time the Corporation again called for bids from brand operators to take up the maintenance and initially finalised Indian Hotels Company Limited (IHCL), Mumbai. But, this proposal also failed to take off. After the change of government in the state, there was no significant step in deciding the fate of this hotel.
The APTDC Chairman Dr A Varaprasad Reddy paid a visit to the hotel in August this year and expressed that they want to take the project forward as it will fetch more revenue for the Corporation and provide affordable accommodation to the pilgrims.
But, the corporation has finally issued e-tender notification for leasing out the hotel along with Wayside Amenity in Puttur and the Haritha Hotel in Srikalahasti. It was proposed to lease out these hotels for 33 years.
According to the divisional manager of APTDC, Tirupati division, M Giridhar Reddy, it requires Rs.16 crore to complete the project and post Covid, the corporation cannot afford it and invited bids from experienced operators of hotel and catering Industry. They need to complete the hotel and run on their own and pay lease rent to the corporation. The last date for receiving the bids is December 6.
