KP-CTA to lease Swat Serena Hotel through open, competitive bidding

By SYED SHAHABUDDIN

SWAT – The Khyber Pakhtunkhwa Culture and Tourism Authority (KP-CTA) has formally taken possession of the Swat Serena Hotel following the expiry of its lease, announcing plans to lease the property through an open and competitive bidding process.

The hotel, spread over 44.6 kanals and comprising 49 rooms with allied facilities, was originally leased in April 1985 to Tourism Promotion Services Pvt Ltd, part of the Serena Hotels chain, for a 30-year term that ended in June 2015. Disputes over rent assessment led to prolonged litigation, with the matter eventually placed before the provincial cabinet.

Lease extensions and reassessments

In 2021, the cabinet approved a conditional extension, followed by multiple rent reassessments. These included an annual valuation of Rs 13.27 million in 2022 and later Rs 104.69 million per annum, determined by a multi-departmental committee headed by the KP-CTA Director General.

However, under the provincial lease policy, further extensions were deemed impermissible. The Board of Directors deferred the issue in January 2025, and in December the Serena management formally conveyed its intention to hand over the property. KP-CTA took lawful possession on 31 December 2025.

Market value and future plans

Sources said the hotel management had been paying Rs 8.8 million annually, significantly below prevailing market rates. KP-CTA officials stated that the property will now be leased for 30 years through a transparent bidding process, with third-party assessments projecting revenues of at least Rs 4 million per month.

The spokesperson reaffirmed that KP-CTA is committed to protecting public assets, ensuring transparency, and promoting sustainable tourism in line with provincial laws and policies.