Srinagar, Feb 10: The iconic Centaur Lake View Hotel on the banks of Dal Lake is set to begin a new chapter as a luxury destination, with The Leela Palaces, Hotels and Resorts taking over the landmark property on a long-term lease, marking one of the most significant hospitality revivals in Kashmir in recent years.
The Centaur Srinagar is one of only two remaining hotels under the Centaur brand operated by Hotel Corporation of India, a subsidiary of the erstwhile state-owned Air India. While the Centaur at Delhi Airport is nearing the end of its life, with large parts of the property unusable and demolition expected after 2032, the Srinagar hotel has avoided a similar fate and is now poised for a transformation into a high-end luxury property.
According to details shared by Leela group officials in media interactions, the company is investing around ₹300 crore in redeveloping the Dal Lake hotel, making it the largest hospitality sector project currently underway in Kashmir. The existing 220-room hotel is being redesigned into a 170-room luxury property with larger rooms and upgraded facilities, aligned with Leela’s premium positioning. The hotel is expected to reopen by the end of next year. Plans also include the introduction of Leela-branded houseboats on Dal Lake, a first-of-its-kind offering in the Valley’s luxury tourism segment.
The redevelopment follows years of administrative transition and policy-level efforts to revive the property. In the background, the Jammu and Kashmir Tourism Development Corporation had opened the doors to national and international investors by inviting bids to outsource the Centaur Lake View Hotel under a Public-Private Partnership framework. The bid notice proposed outsourcing the development, finance, operation and maintenance of the hotel on a DBFOT (Design, Build, Finance, Operate and Transfer) basis for a concession period of 60 years, with the estimated project cost pegged at ₹212.5 crore.
The move came after the Jammu and Kashmir government initiated the process of taking over the hotel from Hotel Corporation of India in 2022. As part of this process, an estates officer was appointed under the Jammu and Kashmir Public Premises (Eviction of Unauthorised Occupants) Act, 1988, to facilitate the takeover. The origins of the hotel date back to June 1979, when the then J&K government decided to lease out 13 acres of prime land at Cheshmashahi to HCI for 90 years, followed by a formal agreement executed in March 1982.
Established in 1982 and located adjacent to the Sher-e-Kashmir International Convention Centre, the Centaur Lake View Hotel has long been a preferred destination for domestic and foreign tourists, as well as official delegations visiting Kashmir. Its scenic setting and strategic location made it one of Srinagar’s most prestigious hospitality addresses for decades.
Industry observers see the Leela-led revival as a turning point not just for the Centaur property but for luxury tourism in Kashmir more broadly. With a globally recognised luxury brand committing substantial capital to the project, the redevelopment is being viewed as a strong signal of renewed investor confidence in the Valley’s tourism potential and a step towards repositioning Srinagar on India’s high-end hospitality map.
