Bhopal’s Lake View Ashok Set For Privatization

Published on November 25, 2025

The Madhya Pradesh State Tourism Development Corporation (MPSTDC) has announced December 5, 2025, as the final date to submit bids to privatise Hotel Lake View Ashok in Bhopal. After Many months of delays and tenders throughout the year, the state has shown its determination to privatise the asset and keep the property within the hospitality sector.

MPSTDC’s Asset Monetisation Push

In March 2025, MPSTDC initiated a significant asset-monetisation strategy aimed at revitalising state-owned properties and streamlining their operational management. Hotel Lake View Ashok, one of the state’s most valuable yet underperforming assets, has been at the heart of this plan. Despite having strong brand recognition and a prime location overlooking the Upper Lake, the hotel has consistently faced financial difficulties.

The property, situated on Bhopal’s Shyamla Hills, features over 60 rooms, multiple dining options, open-air event spaces, and a stunning lakefront view. However, it requires a major capital investment to modernise and reposition it as a premium hospitality destination. MPSTDC believes that only a private-sector partnership can inject the necessary capital and operational efficiency to revitalise the hotel and meet the demands of a fast-evolving tourism market.

The Obstacles and Delays

The tender process has been plagued by delays, largely due to regulatory challenges. One of the primary issues stemmed from a portion of the property being classified as revenue forest land, creating a compliance bottleneck that required extensive negotiations and approvals. This regulatory hurdle had led to multiple extensions of the bidding deadline, frustrating potential investors and delaying the hotel’s transition to private management.

However, with the forest land issue now resolved, MPSTDC has cleared the way for the finalisation of the tender process. Government sources indicate that the regulatory framework is now stabilised, and all internal approvals have been secured to allow the bidding process to proceed smoothly.

Bidding Process and Investor Interest

The new deadline of December 5 is final, with no further extensions planned. As per the terms outlined in the tender document, MPSTDC expects bidders to offer an annual payment of 3 crore rupees, with a 5 per cent increase each year, in addition to a percentage of the hotel’s revenue. The tender will be awarded to the bidder who offers the highest revenue-sharing percentage, ensuring that the state maximises the financial potential of the asset while also ensuring the property’s long-term viability.

The decision to privatise the hotel has drawn significant interest from various hotel chains, particularly those looking to expand their footprint in the premium segment in central India. The prime location of the property, with its panoramic views of Upper Lake, makes it an attractive option for investors looking to transform the hotel into a high-yield experiential destination.

Tourism and Economic Implications

The privatisation of Hotel Lake View Ashok is part of MPSTDC’s broader strategy to leverage tourism assets for economic growth. Tourism is a key driver of revenue for Madhya Pradesh, with the state boasting a rich cultural heritage and an array of natural attractions. By repositioning underperforming assets like Hotel Lake View Ashok, the government aims to boost the state’s appeal as a prime tourist destination.

Industry experts believe that the hotel’s potential, once revitalised, could significantly contribute to the state’s tourism sector by attracting higher-end tourists, both domestic and international. The new operator is expected to implement modern hospitality practices, improve services, and elevate the overall guest experience, which could lead to increased footfall and more revenue for the local economy.

Strategic Focus on Tourism Infrastructure

MPSTDC’s decision to move forward with the privatisation of Hotel Lake View Ashok aligns with the state’s strategic focus on improving tourism infrastructure. By partnering with private investors, the government aims to enhance the quality of tourism services while ensuring that state resources are used efficiently.

The successful transition of Hotel Lake View Ashok to private hands could serve as a model for other state-owned tourism assets in the future. The government has indicated that it plans to pursue similar initiatives with other properties that are underperforming, allowing for a more sustainable and profitable tourism sector in the state.

The Road Ahead for Hotel Lake View Ashok

As the Dec 5 deadline nears, MPSTD is eager to wrap up the bidding and start the transition to private management. The fate of Hotel Lake View Ashok is for the state to pivot to the bid most likely to align with transforming the state-owned asset to top tier hospitality and to garner investors for her vision.

The upcoming bid is likely to create interest with investors because of the rapid growth in tourism in the state of Madhya Pradesh. Considering the challenges in the regulatory frameworks to be behind, MPSTDC looks forward to a successful partnership to revitalise the asset and support the growth of tourism in the state.