Lahore’s historic Mall Road is set to witness a remarkable transformation as Faisal Town Group secures ownership of the iconic Services International Hotel (SIH). This strategic acquisition aligns with the group’s vision of merging the city’s rich cultural heritage with modern luxury, setting the stage for a premier five-star hospitality destination.
After over three years of delays, the Government of Pakistan officially finalized the sale of Services International Hotel for Rs1.951 billion. The deal was sealed on March 1, 2025, following the resolution of a prolonged legal dispute in the Lahore High Court (LHC) in September 2024.
The SIH property spans 15 Kanal, 3 Marla, and 113 square feet (7,585 square yards), featuring a four-story building with a total built-up area of 93,850 square feet. The Lahore Development Authority (LDA) has designated the site for commercial use, paving the way for a world-class development.
The privatization journey began on August 26, 2021, when a public auction was held, and M/s Faisal Town (Private) Limited emerged as the highest bidder. The federal cabinet approved the transaction in October 2021, followed by the issuance of the Letter of Award (LoA) on November 2, 2021. Faisal Town Group completed the full payment by January 6, 2022, but legal challenges stalled progress.
One major hurdle was a legal case filed by the Punjab Cooperative Board for Liquidation (PCBL) in December 2021, which delayed the process for nearly three years. Other involved parties included M/s Civic Centre Company Limited (CCCL), the LDA, and the Privatization Commission. The case was eventually resolved on September 20, 2024, allowing the deal to move forward.
Faisal Town Group has an impressive track record of developing over 140,000 Kanals of land, successfully accommodating a population of over 1.5 million in Islamabad and Rawalpindi. Their portfolio includes major projects such as:
With this new acquisition, Faisal Town Group aims to redefine hospitality in Lahore by integrating luxury with the city’s historic charm. An international five-star hotel chain is expected to debut in Pakistan through this project, setting new standards for upscale accommodations.
At the official signing ceremony, Federal Minister for Privatization, Abdul Aleem Khan, lauded the successful sale of SIH as a major step in Pakistan’s privatization efforts.
“The successful privatization of Services International Hotel will enhance the credibility of the Privatization Commission,” said Khan. “This achievement will pave the way for the timely completion of other cases, ensuring we meet our privatization objectives efficiently.”
He also stressed the need to create a business-friendly environment and reduce bureaucratic delays in future privatizations.
The acquisition of Services International Hotel marks the beginning of an exciting new chapter for Lahore’s luxury hospitality sector. Faisal Town Group’s vision promises a world-class five-star destination, attracting both domestic and international visitors.
With Lahore’s status as a cultural and business hub, this transformation is expected to boost tourism, create jobs, and enhance the city’s global appeal.
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