Despite UT administration splurging huge money on the renovation and upkeep of Hotel Shivalik View, the earnings of the hotel have plunged more than 25% this year.
As per records, the hotel had registered an income of over Rs 12 crore from April 2011 to November 2011, which has come down to around Rs 9 crore during the same period this year.
There are a total of 108 rooms in the hotel and the occupancy rate of the rooms was 60.67% last year, which fetched the management around Rs 6 crore as room rent. Whereas the room occupancy dropped to 41.31% this year and around Rs 4 crore was collected as room rent.
Similarly, the net food sale also witnessed a steep fall despite increase in food charges. The gross food sale was recorded at more than Rs 5 crore last year while the figures recorded this year are around Rs 4 crore. The gross bar sale during the same period in 2011 and 2012 is more than Rs 82 lakh and around Rs 68 lakh, respectively.
Since 2009, the Chandigarh Industrial and Tourism Development Corporation (CITCO) has spent around Rs 11 crore on the hotel. For setting up rainforest-based restaurant, CITCO doled out around Rs 70 lakh while the collective earnings of last two years from the restaurant is around measly Rs 9 lakh. The management splurged around Rs 1 crore on Cloud 9 restaurant while around Rs 1.5 crore was spent on restaurant Bazm and Lee café. On the renovation of lobby and corridors, a sum of more than Rs 1.5 crore was spent. Another sum of more than Rs 1 crore was shelled out on renovation of porch and parking area. For health club and swimming pool, a budget of around Rs 1.5 crore was sanctioned.
Likewise, for setting up of four new shops, lifts, discotheque and renovation of kitchens around Rs 2 crore had been allocated.
The management allocated the works to as many as seven different contractors, who failed to complete their respective assigned task in time.
Criticising the management for spending extravagantly on renovation and adding new features in the hotel, a senior official said, "Carrying out such massive renovation makes no sense. The authorities have spent huge money but paid little attention on how to increase the revenue of the hotel. There is a need to fix accountability."
The authorities have also been accused of carrying out renovation work without making any efforts for ascertaining whether renovation was required or not.
Terming the renovation as need of the hour, CITCO managing director DK Tewari said all renovation work carried out at the hotel was required for the survival. He further added that all work was undertaken after taking permission from the board of directors.