The Swat Serena Hotel has reportedly shut down after refusing to agree to an increase in its annual lease, which was set at Rs700,000. Officials said the amount was far below current market rates, and as a result of the disagreement, the lease agreement was not renewed.
Following the closure, the Khyber Pakhtunkhwa government announced that it plans to re-advertise the lease of the hotel property. The new lease will be offered through a competitive bidding process, allowing both local and international bidders to take part. Authorities said the move aims to secure a lease value that better reflects prevailing market conditions.
Government sources indicated that the decision is part of broader efforts to align state-owned properties with current economic realities, especially in the tourism and hospitality sector, which has seen significant changes in recent years.
The development has drawn attention to the need for regular review of lease agreements to ensure fair valuation and sustainable management of prime tourism assets. Officials said the bidding process will be transparent and open, with the goal of attracting serious investors capable of operating the property at competitive standards.
