Sarena Swat shut down hotel over charges dispute with PTI govt

Swat Serena Hotel ceased operations with effect from January 1, 2026, bringing to an end nearly four decades of service in the Swat Valley.

In an official notice issued by the management, the hotel said it had been privileged to host guests for almost 40 years and played a role in promoting tourism in Khyber Pakhtunkhwa, particularly in the Swat region.

“We regret to announce the closure of Swat Serena Hotel’s operations, effective 1 January 2026,” the notice said, adding that the management was grateful to its guests, partners, and associates for their continued support over the years.

The hotel management noted that while operations in Swat are coming to an end, Serena Hotels will continue to welcome guests at its other properties across Asia and Africa. The group currently operates 33 hotels, including 10 in Pakistan.

Serena Hotels reaffirmed its commitment to delivering high-quality service and memorable experiences at its remaining locations.

The closure of Swat Serena Hotel marks the end of a significant chapter in the valley’s hospitality and tourism sector, where the hotel has long been regarded as a landmark destination for domestic and international visitors.

The special assistant to Khyber Pakhtunkhwa chief minister on information and public relations, Shafi Jan, said on Friday that the provincial government was fully committed to transparent, efficient and honest management of valuable public assets along with the promotion of tourism across the province.

In a statement issued here, Mr Jan rejected the negative propaganda surrounding the Swat Hotel (formerly Serena Hotel), saying such claims were misleading and contrary to facts.

Providing details, Shafi Jan said the Swat Hotel was a prime tourism property spread over approximately 44.6 kanals. The hotel was leased in April 1985 to M/s Tourism Promotion Services (Serena Hotel) for a period of 30 years at an annual rent of Rs500, 000. The lease expired on June 30, 2015.

He explained that following the expiry of the lease, disagreements emerged over the determination of rent at prevailing market rates, leading to legal proceedings. During different periods, the rent was reassessed, fixing it at Rs8.86 million annually in 2014 and Rs13.27 million in 2022. In October 2021, the provincial cabinet approved a temporary retrospective extension, subject to the determination of a fair market rent.

Subsequently, a multi-sectoral committee headed by the director general of the Culture and Tourism Authority conducted a detailed assessment and determined the annual market rent at Rs104.69 million to align with current market realities. However, after reviewing legal and policy requirements, it was decided that further extension of the lease was not permissible under the existing provincial policy.

Following this decision, the Serena Hotel management agreed to vacate the premises in December 2025 and on December 31, 2025, the possession of Swat Hotel was formally handed over to the Khyber Pakhtunkhwa Culture and Tourism Authority.

Shafi Jan said the government plans to lease out the property through a transparent and competitive open auction. According to third-party assessments, the hotel’s monthly market value is significantly higher, which could generate substantial revenue for the province.

He added that the provincial government was taking effective measures to promote tourism, improve facilities for tourists and further strengthen infrastructure in tourist destinations, noting that tourism is a key pillar of the provincial economy.

The PTI Khyber Pakhtunkhwa (KP) government said on Friday that the Swat Serena Hotel voluntarily closed its doors after being asked to increase its annual lease from Rs0.7 million, a figure that had remained unchanged for years despite the growing disparity with current market rates.

Speaking to ChitralToday, Akhtar Khan, a PTI Member of the Provincial Assembly (MPA) from Swat, who has been accused of pressuring the hotel to cease operations, rejected the claims that he and fellow MPA Fazal Hakim were behind the closure of the Swat Serena Hotel or any plans to run it as a joint venture.

He categorically denied any political pressure, saying the provincial government’s only aim was to align the lease with market realities, which did not bode well for the Serena Hotels’ management, leading to shut the hotel so abruptly.

Khan pointed out that Rs0.7 million per year was an insult to a premium brand like Serena Hotels, especially in a prime tourist hotspot like Swat.

“The Rs0.7 million annual lease was a peanut compared to current market rates,” he stated. “We only aimed to bring it in line with what it should be,” he declared.

He clarified that the Swat Serena was closed after it’s management flatly rejected the proposed increase in the lease amount, refusing to meet the government’s reasonable demands.

Khan further explained that after Serena Hotels declined the proposed adjustment, the KP government’s tourism department took control of the property and intends to re-advertise the lease through a competitive bidding process.

He added that the bidding process will be open to both national and international bidders, with Serena Hotels welcome to throw its hat into the ring, as long as it is willing to meet the terms.

“The government’s actions are all about securing the fair market value of public assets,” he said. “We are focused on boosting provincial revenue through a fully transparent bidding process.”

Khan also emphasised that it was the government’s duty to ensure public assets were leased at market rates, grounded in legal principles.

“Lease agreements can’t be extended under pressure; they have to align with market realities,” he added. He dismissed the accusations of self-interest, calling them “baseless” and “a joke.”

Khan also clarified that he was “an ordinary PTI worker” with no business background that would make him a candidate to manage the hotel.

“I come from a background like Murad Saeed’s – no political backing, it is the party that made me an MPA – and I have no business experience, just an LLB degree and the heart of an ideological PTI worker,” he added.

Sources close to the KP government have revealed that the hotel could generate up to Rs4 million per month in lease payments, far exceeding the Rs0.7 million Serena Hotels had been paying. The government plans to lease the property through an open bidding.

Efforts to reach Aziz Boolani, the Global Chief Executive Officer (CEO) of Serena Hotels, for comment were unsuccessful despite repeated attempts.