Royal Revival: IHCL to Transform Agartala’s Pushpabanta Palace into Taj’s Newest Luxury Heritage Hotel

Indian Hotels Company Limited (IHCL), part of the Tata Group, has inked a landmark lease agreement with the Tripura government to develop the historic Pushpabanta Palace in Agartala into a world-class five-star luxury hotel—Taj Pushpabanta Palace. This transformative project is poised to elevate Tripura’s tourism profile while preserving its regal heritage.

Key Highlights:

Historic Partnership: The 1917-built Pushpabanta Palace, once the Raj Bhavan and a symbol of Tripura’s royal legacy, will be restored and integrated as the reception and public areas of the new hotel. The project includes constructing 100 luxury rooms and four royal suites, blending heritage with modern amenities.

Major Investment: With an estimated outlay of ₹250 crore, IHCL will receive a 30% capital subsidy (up to ₹40 crore) and 100% GST reimbursement (up to ₹250 crore over 15 years), signaling robust government support.

Tourism Boost: The Taj Pushpabanta Palace is expected to create over 200 direct jobs, with a focus on hiring local talent and providing hospitality training, especially for tribal youth. The project aims to open new avenues for tourism and showcase Tripura’s unique cultural legacy to global travelers.

Long-Term Vision: The lease spans 60 years, with an option to renew for another 30 years. Most accommodations will be built adjacent to the palace, ensuring the preservation of its architectural and historical integrity.

Community Engagement: Initial opposition from local groups was addressed through assurances of heritage preservation and socio-economic benefits for the region.

Chief Minister Dr. Manik Saha hailed the project as a “milestone” for Tripura, promising a new era in heritage hospitality and international tourism.

Source: Hospitality Biz India, Hotel Management Network, NE India, UNI India, India Today NE, NDTV