The central government has proposed the redevelopment of two brownfield hotels in New Delhi under the National Monetisation Pipeline 2.0, according to a NITI Aayog report. The private sector investment attributable to the projects will be counted towards monetisation proceeds. The combined investment has been set at Rs 12,000 million (mn), with Rs 8,200 mn earmarked for The Ashok and Rs 3,800 mn for Hotel Samrat.

The redevelopment for The Ashok is expected to be the larger programme and is planned to be awarded in the initial period of NMP 2.0, with an award targeted in Financial Year 2027. A similar project for Hotel Samrat is expected towards the end of the NMP 2.0 period, with an award target in Financial Year 2030. Both asset classes are proposed to be implemented using a direct contractual method, predominantly through public private partnership contracts.

Monetisation value is expected to take the form of development investment by the private sector under these contracts and has been recorded as direct investment by the central government. The contractual arrangements will define risk allocation between the public and private parties and will include contractual performance obligations and benchmarks. The structure is intended to mobilise private capital and management expertise while retaining a defined term of obligation.

Built in 1956, The Ashok is a deluxe property located in the Diplomatic Enclave of Chanakyapuri and is owned and operated by the India Tourism Development Corporation (ITDC). Hotel Samrat, also managed by ITDC, is situated in central New Delhi and the corporation is a central public sector undertaking under the Ministry of Tourism. Both properties are brownfield assets within the national capital and their redevelopment is expected to contribute to the monetisation targets set under NMP 2.0.