Lakeview Residency to be razed & rebuilt as 5-star hotel on PPP

Bhopal: A consortium led by Genex Hotels Private Limited, Dilip Buildcon Limited and Indian Hotels Company Limited (IHCL) won the rights to redevelop the MPT Lake View Residency Hotel into a minimum 5-star property with a convention centre.The hotel, located on Shyamla Hills overlooking the Upper Lake, operated by MP Hotel Corporation Ltd. (MPHCL) since 1988, was set for a complete overhaul under a Design-Build-Finance-Operate-Transfer (DBFOT) model.Tourism Secretary Ilaiya Raja described the development to TOI as a key boost for tourism. "This will make it much easier to host major conventions and events in the future, as Bhopal is now on everyone's radar. It positions the city strongly as a MICE (meetings, incentives, conferences, and exhibitions) destination." He added that the Madhya Pradesh Tourism (MPT) Corporation has also reaped significant benefits. "We've secured a larger revenue share, marking an important milestone," Raja noted. The project was planned under a 60-year concession, extendable by 10 years, and included a 150-room luxury hotel, a banquet hall for 1,000 guests and other facilities approved under the Madhya Pradesh Tourism Policy 2025. MPHCL, an arm of the Madhya Pradesh State Tourism Development Corporation (MPSTDC), began the process by issuing a Request for Proposal (RFP) on March 25, 2025.The selected consortium offered the highest gross revenue share of 10.80%, along with an annual concession fee starting at Rs 3 crore with a 5% annual escalation, and a Rs 16,110 user fee.Under the Public-Private Partnership (PPP) agreement, the selected bidder was to form a Special Purpose Vehicle (SPV), provide a "Golden Share" to the authority and receive "Right to Use" of the land. The plan involved demolishing the existing structure and constructing a new facility, with private participation aimed at meeting rising tourist demand in city. "We'll complete this hotel in three years, turning it into a landmark property in city. Every room and banquet hall will boast views of Upper Lake," said a senior official from the winning company, speaking anonymously.