Patna: Global hospitality majors JW Marriott, Hyatt Regency, and ITC Hotels are in advanced negotiations to operate a new five-star hotel set to rise on the site of the former Patliputra Ashoka Hotel in Patna. The developer, Kumar Infratrade Enterprises Pvt Ltd, confirmed it is close to finalising a deal with one of the three brands, which will bring a luxury hospitality offering to the state capital.
The move follows the Bihar Tourism Department’s decision to lease out the 1.5-acre Beerchand Patel Path site for redevelopment into a premium hotel. The lease, granted for 60 years with an option to extend by 30 more, was awarded to Kumar Infratrade through a competitive bidding process.
Officials said the upcoming property will feature a minimum of 100 rooms and will meet the operational and design norms of the Ministry of Tourism, Government of India. Under the terms of the Request for Proposal (RFP), the developer is required to enter into an Operations and Maintenance (O&M) contract with an experienced five-star brand within 150 days of receiving the Letter of Award, and before signing the concession agreement.
The state-run Bihar State Tourism Development Corporation (BSTDC) will receive an annual lease premium of Rs 7.57 crore (excluding taxes), which will escalate by 10% every five years over the lease period. This is in addition to a Minimum Valuation Reserve (MVR) of Rs 28.5 crore payable over 11 years, with an interest rate of 9.5% on the outstanding upfront premium.
The project will involve the complete demolition of the ageing Patliputra Ashoka structure. Once completed, the new hotel is expected to boost high-end tourism and business travel to Patna, significantly enhancing the city’s hospitality infrastructure.
