CITCO to renovate 2 flagship hotels to drive up revenue in Chandigarh
The renovation work will be carried out in phases, with ₹2.5 crore earmarked for Hotel Shivalikview and ₹3 crore for Hotel Mountview
The Chandigarh Industrial and Tourism Development Corporation (CITCO) is preparing to renovate its two flagship properties—Hotel Mountview in Sector 10 and Hotel Shivalikview in Sector 17—at an estimated cost of around ₹5.50 crore.

This multi-pronged renovation initiative is aimed at boosting the corporation’s revenue and addressing the increasing competition from the private hotel sector within Chandigarh and the tricity region. CITCO has already submitted the expenditure proposal to the UT administration for approval.
The renovation work will be carried out in phases, with ₹2.5 crore earmarked for Hotel Shivalikview and ₹3 crore for Hotel Mountview. Combined, 65 rooms in these two hotels will undergo renovation.
A senior CITCO official said, “This renovation has been long overdue. We have now decided to upgrade and refurbish the rooms and suites in both hotels to offer facilities and amenities on par with international standards, similar to those available in five-star properties. As part of the renovation, furniture will be refurbished, and curtains and upholstery in executive rooms, suites and the lobby will be replaced, giving the rooms a fresh and modern look.”
The first phase of the renovation will focus on 25 of the 155 rooms at Hotel Mountview and 40 of the 108 rooms at Hotel Shivalikview. Once the expenditure proposal is approved, tenders will be floated within a month, according to the official.
Marketing policy hanging fire
In a related development, at a board of directors meeting held in November last year, CITCO had proposed developing a new marketing policy to help it compete with private players in the tourism industry.
However, even after two months, no progress has been made on this front.
During the same meeting, board members had expressed concerns over CITCO’s declining hotel occupancy, which has had a negative impact on revenue.
CITCO officers, who visited Kerala last year to study its tourism policies, had presented their findings to the board, which subsequently decided to implement a competitive marketing policy to strengthen CITCO’s position against private competitors.
The board had also resolved to improve guest experience and satisfaction by reviewing hotel services and taking guest ratings on social media platforms into account. Additionally, it was suggested that the sales team should be entrusted with managing rate distribution and discounts, allowing them to set prices based on seasonal demand rather than relying on historical discounts.
Financial sustainability in question
CITCO’s flagship hotels, which include Hotel Mountview, Hotel Shivalikview and Hotel Parkview (formerly Chandigarh Yatri Niwas), have long been part of the city’s hospitality landscape.
The management of these hotels was transferred to CITCO in 1982, with Mountview initially operated by a private group until its lease ended. Hotel Shivalik View was taken over by CITCO in 1988, and put to commercial use on January 1, 1990.
Despite being located in prime locations with well-developed infrastructure, the UT administration has found it difficult to maintain the relevance of these hotels in the increasingly competitive hospitality industry.
Hotel Shivalikview has been particularly underperforming, incurring significant losses. According to the Monthly Income Statement (MIS) for December 2024, the hotel reported a loss of ₹1.28 crore over the past year.
On average, the hotel had expected to earn ₹1.50 crore per month from April to December 2024 but only managed ₹1.25 crore per month.
In contrast, Hotel Mountview reported a profit of ₹1.07 crore, and Hotel Parkview earned an annual profit of around ₹1 crore in 2024.
To make Hotel Shivalikview profitable again, senior CITCO officials have decided to implement several operational changes. These include reallocating regular staff, particularly kitchen staff, to other hotels and replacing them with outsourced personnel.
These changes are part of a broader strategy to optimise costs and improve operational efficiency at the underperforming hotel, which has been struggling to compete with other properties in the region.
