According to two people with knowledge of the matter, ITC Ltd, Indian Hotels Co Ltd (IHCL), and DS Group have expressed interest in competing to build and operate the 550-room The Ashok hotel in the centre of the capital city, which is owned and operated by the government-run India Tourism Development Corp (ITDC).

Even though two of them, ITC Ltd and IHCL, already have a significant presence in the city, the hotel operators are eager to manage the iconic property in New Delhi, according to the hospitality consultants, one of whom serves as an advisor to one of these businesses.

The first Indian prime minister, Jawaharlal Nehru, oversaw the construction of the five-star hotel in Chanakyapuri on 25 acres of parkland in 1956. One of Delhi’s largest pillar-free convention halls may be found at the first such hotel constructed in Independent India. Fidel Castro, Yasser Arafat, and Margaret Thatcher were among the world leaders who later stayed at the hotel, but it has now fallen into disrepair and lost much of its former lustre.

According to Kachru, the 66-year-old hotel was India’s first attempt at hospitality and had the chance to host 109 presidents and heads of state.

Following a thorough proposal on the monetisation of the hotel that transaction advisor Feedback Infra submitted to the Department of Investment and Public Asset Management (DIPAM) in July 2020, its operator, ITDC, announced to stock exchanges on Wednesday that it now had clearance to proceed with the plan, sending its stock soaring 10%.

This is a fantastic opportunity because it will consider prospective office and retail spaces, including high-end shops, restaurants, and hotel spaces. Only a third of the land has been developed to this point. The rooms can change, but the new bidders won’t be able to alter the façade because owners will be permitted to knock down interior walls to add or remove rooms, according to one of the consultants.