The Kozhikode Municipal Corporation has decided to put an end to the functioning of Hotel Malabar Mansion in Mananchira by refusing to extend the lease agreement beyond March 31, 2016. The Malabar Mansion is the first ever endeavour of the Kerala Tourism Development Corporation (KTDC) in north Kerala. Started in a building owned by the Kozhikode Corporation next to the S.K.Pottekkat statue at the beginning of S.M. Street 25 years ago, the hotel is in a run-down state now.
The 25-year lease agreement between the KTDC and the Kozhikode Corporation had expired on May 31, 2015. The request from the KTDC to extent it to another 25 years was rejected by the Kozhikode Corporation earlier. Instead, it was extended till the end of the year. Later, it was extended to March 31, 2016. In a meeting on Friday, the Kozhikode Corporation Council, as per the recommendations of the Finance Standing Committee, decided not to extend the lease agreement and to evict the KTDC from the building.
The decision was vehemently opposed by many members of the opposition who alleged ulterior motives behind the move. Councillors P. Kishenchand, P.M. Niyas and Vidya Balakrishnan batted for the extension of the lease that would enable the KTDC to restore the hotel to its original glory. They argued that it was the only hotel under the public sector in Kozhikode besides the Government Guest House in East Hill.
However, the pleas of the opposition were denied on the grounds that the Corporation had other plans for the land. Town Planning Standing Committee Chairman M.C. Anil Kumar said the Corporation had plans to raze the aged building and reconstruct it.
