Zulfiqar Ahmad
ISLAMABAD, Jan 2, 2026: 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.
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