The Bihar State Tourism Development Corporation (BSTDC) is leading a transformative push in the state’s hospitality sector with the redevelopment of multiple prime land parcels in Patna into 5-star hotels. BSTDC has already awarded a key project and floated tenders for two more strategic sites under long-term lease arrangements.
Hotel Patliputra Ashoka to Become 5-Star Landmark
In a major development, the Bihar Cabinet on June 17, 2025, approved the issuance of the Letter of Award (LOA) for the redevelopment of the iconic Hotel Patliputra Ashoka site, located on veerchand Patel Path. The approval was granted to the successful bidder, M/s Kumar Infratrade Enterprises Pvt. Ltd., Patna, based on a concession agreement approved by the Infrastructure Development Authority (IDA).
The land will host a minimum 100-room 5-star hotel developed, operated, and maintained by the selected bidder for a 60-year lease period, extendable by another 30 years.
The developer is in the final stages of negotiations with three globally renowned hotel brands:
JW Marriott
Hyatt Regency
ITC Hotels
As per the RFP, an O\&M agreement with one of these brands is mandatory within 150 days of the Letter of Award (LOA). The project includes the demolition of the existing structure and construction of a new hotel as per norms set by the Ministry of Tourism, Government of India.
Financial obligations
The financial terms of the project include an annual lease premium of ₹7.57 crore, exclusive of taxes, which will see a 10% increase every five years. In addition to this, the developer is required to make a Minimum Valuation Recovery (MVR) payment of ₹28.5 crore spread over 11 years, with an applicable interest rate of 9.5% on any outstanding dues during the repayment period.
Tender Floated for Iconic Sites in Patna
Bihar State Tourism Development Corporation (BSTDC) had floated tenders on January 7, 2025, inviting bids for the development, operations, and maintenance of 5-star category hotels across three prominent land parcels in the city. These projects were planned on a long-term leasehold basis, aiming to attract reputed private developers through a transparent and competitive bidding process.
The properties offered under the tender included:
Hotel Patliputra Ashoka premises
– Land area: approximately 1.5 acres
– Location: Beerchand Patel Path, Patna
– Lease period: 60 years, extendable by another 30 years
Sultan Palace Complex
– Land area: approximately 4.89 acres
– Location: Near Income Tax Golambar, Patna
– Lease period: 60 years, extendable by another 30 years
Bankipore Bus Stand Complex
– Land area: approximately 3.24 acres
– Location: Ashok Rajpath, Patna
– Lease period: 60 years, extendable by another 30 years
These high-value sites were identified for the establishment of world-class hotel facilities, in line with global standards, to cater to the growing demand for premium accommodation in Bihar’s capital. The initiative aligns with the state government’s broader vision to make Patna a key destination for cultural tourism, high-end hospitality, and business travel.
