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PESHAWAR, Jan 02 (APP):The Khyber Pakhtunkhwa government has rejected as baseless and misleading the ongoing propaganda by certain quarters regarding the Swat Serena Hotel, clarifying that all actions taken in the matter are fully in line with facts, laws and public interest.
According to an official statement, Swat Serena Hotel is a major tourism asset spread over approximately 44.6 kanals of land and comprises 49 rooms along with allied facilities.
The property was leased in April 1985 to M/s Tourism Promotion Services (Private) Limited (Serena Hotels Chain) for a period of 30 years at an initial annual rent of Rs 0.5 million, in accordance with the rules applicable at that time.
After completion of the lease period on June 30, 2015, the hotel management sought an extension. Subsequent evaluations were conducted to reassess the rent, and in 2014 the annual rent was fixed at Rs 88.6 million. However, due to disagreements over rent determination, the matter remained sub judice for several years.
In compliance with court orders, the case was presented before the provincial cabinet, which in October 2021 approved retrospective extension of the lease, subject to re-determination of rent at market rates and final approval from relevant technical forums.
Following the cabinet decision, further assessments were carried out. As a result, the annual rent was fixed at Rs 13.27 million in 2022. Later, a multi-disciplinary committee headed by the Director General, Khyber Pakhtunkhwa Culture and Tourism Authority (KP-CTA), reassessed the rent and determined it at Rs 104.69 million annually.
The statement clarified that all assessments were conducted in line with market realities, protection of public interest, and prevailing laws and policies.
During this period, rent was collected on an interim basis; however, finalization of lease terms could not be achieved. Eventually, it was concluded that further extension of the lease was not permissible under the existing provincial lease policy, and the old agreement had effectively expired.
The matter was placed before the KP-CTA Board of Directors in January 2025, which deferred the agenda until approval of a comprehensive provincial lease policy. Subsequently, in December 2025, the Serena Hotel management formally agreed to hand back the property, and on December 31, 2025, KP-CTA legally assumed possession of the asset.
The authority stated that, in accordance with its legal mandate, the property will be leased out again through an open, transparent and competitive bidding process to ensure effective utilization of public assets, enhancement of government revenue, and strict compliance with laws and policies.
According to third-party market assessments, the auction is expected to generate approximately Rs 4 million per month in revenue.
The KP Culture and Tourism Authority reaffirmed its commitment to safeguarding public assets and promoting sustainable tourism in the province.