Peshawar (Pakistan News) The Swat Serena Hotel is a prime tourism asset situated on approximately 44.6 Kanals of land and comprising 49 rooms along with allied facilities, which is going to close repotedly, in this regard Khyber Pakhtunkhwa (KPK) government Sources clarifies
Sources stated that The property was leased in “April 1985” to “M/S Tourism Promotion Services Pvt (Ltd)”, i.e., Serena Chain of Hotels, for a period of “thirty (30) years” at an initial lease amount of Rs. 0.5 million, subject to applicable rules and policies.
Upon expiry of the lease on 30 June 2015, the Serena Hotel sought an extension. Accordingly, rent assessments were carried out, with the annual lease value assessed at “Rs. 8.86 million” in 2014.
Owing to disagreements over the assessed rent, the matter remained under litigation for several years. In compliance with judicial directions, the issue was placed before the Provincial Cabinet, which in October 2021 approved a retrospective lease extension, subject to reassessment of rent on fair market principles and finalization through competent technical forums.
In pursuance of cabinet decisions, further rent assessments were undertaken, resulting in revised annual valuations of “Rs. 13.27 million” in 2022, and subsequently “Rs. 104.69 million” per annum as assessed by a duly constituted multi-departmental committee under the Chairmanship of DG CTA.
These assessments were carried out to ensure alignment with market realities, protection of public interest, and compliance with prevailing laws and policies.
During this period, interim lease payments were received; however, finalization of lease terms remained unresolved.
Subsequently, it was determined that further lease extension was not permissible under the existing provincial lease policy and that the original lease agreement had effectively expired.
The matter was placed before the Board of Directors of KP-CTA in January 2025, which deferred the agenda pending approval of a comprehensive provincial leasing policy.
In December 2025, the Serena Hotel formally conveyed its intention to hand over the property to KP CTA, and lawful handing over and taking over of possession was duly completed on 31 December 2025.
KP-CTA, in line with its statutory mandate, will proceed to lease out the facility through an open, transparent, and competitive bidding process, ensuring optimal utilization of the asset, maximization of public revenue, and strict adherence to applicable laws and policies.
As per third-party market assessments, the auction is expected to fetch Rs. 4 million/Month. The Authority remains fully committed to safeguarding public assets and promoting sustainable tourism development in the province.