Zulfiqar Ahmad
ISLAMABAD, Jan 5, 2026: In a rebuttal to accusations by Pakistan Tehreek-e-Insaf (PTI) MPA Akhtar Khan, Serena Hotels’ management on Monday vehemently denied claims that the lease for its Swat property was a mere Rs700,000, declaring that the hotel had been paying an annual rent of Rs8.8 million – until its controversial closure.
Speaking to ChitralToday, a senior Serena official dismissed the PTI MPA’s allegations that the hotel vacated the property after being asked to raise the lease, citing documentary evidence to confirm that the hotel had consistently paid Rs8.8 million annually from 2015 until December 31, 2025.
“We’ve paid Rs8.8 million each year as per the agreement with the Chief Secretary of Khyber Pakhtunkhwa (KP),” the official said. “However, when we made the final payment for 2025, we paid Rs10.06 million – even though the KP government refused to extend the lease.”
Despite these timely payments, the official revealed that the lease agreement for an extension beyond December 31, 2025, was never formalised, despite multiple attempts by Serena Hotels to engage with the provincial authorities.
“This lack of formalisation ultimately forced the hotel to vacate the property,” the official added.
The official also addressed concerns over the fairness of the lease, pointing out that Serena had taken over the Swat property in 1985 in a dilapidated state and had invested significant time and money restoring it to world-class standards.
“We rebuilt a crumbling government building,” the official stated. “It took 40 years of effort to transform it into a premier hotel. But now, the PTI government’s actions seem to have a clear agenda.”
Serena’s commitment to its employees was also highlighted, with the official noting that no staff members were laid off during the COVID-19 pandemic – a stark contrast to the widespread redundancies seen in many other private sector hotels.
Despite security challenges, including two major military operations in the region in the late 2000s, he added, Serena Hotels remained operational, reinforcing its role in making Swat a safe, attractive destination for tourists.
The official also referred to a 2015 recommendation by Advocate General Abdul Latif Yousafzai, under the then Chief Minister Pervez Khattak’s administration, to extend the hotel’s lease by 30 years. According to the official, however, the provincial government blocked this process, raising suspicions of political interference under one pretext or another.
In a pointed accusation, the official alleged that the PTI-led KP government’s actions were part of a broader strategy to seize control of the property, potentially handing it over to private cronies.
“Serena Hotels would not have been evicted after 40 years of service if there weren’t ulterior motives at play,” he alleged.
While PTI leaders have repeatedly championed their commitment to fostering tourism in Khyber Pakhtunkhwa, the forced shutdown of Serena Hotels in Swat has raised concerns within the industry. Stakeholders warned that such actions could discourage future investment, especially from international brands.
“If a prominent name like Serena, which has operated in Swat for four decades despite numerous challenges, is pushed out, it sends a worrying message,” said one industry insider. “No international brand will risk entering a region where the climate for investment is hostile.”
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