Serena rejects PTI MPA’s allegations, says Swat hotel lease was Rs8m

ISLAMABAD: In a sharp rebuttal, Serena Hotels’ management on Monday fiercely rejected claims by Akhtar Khan – a PTI MPA from Swat – that the lease for its Swat property was only Rs 700,000, insisting instead that it had been paying Rs 8.8 million annually until the hotel’s controversial closure.

Talking to Business Recorder, a senior official of Serena Hotels denied allegations by the PTI MPA that the hotel vacated its Swat property after being asked to raise the lease, citing documentary evidence to confirm that the hotel had consistently paid an annual lease of Rs 8.8 million since 2015.

“We have been paying Rs 8.8 million annually since 2015 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 Rs 10.06 million – despite the KP government’s refusal to extend the lease.”

READ MORE: Swat Serena shut after being asked to increase annual lease of Rs700,000: PTI MPA

The official further clarified that while lease payments had been made on time, the agreement for an extension beyond December 31, 2025, was never signed, despite multiple attempts by Serena Hotels. “This lack of formalisation ultimately led to the hotel’s decision to vacate the property,” he added.

When questioned about the fairness of the lease amount, the official noted that the Swat property was handed over to Serena Hotels in 1985 in a deteriorated condition.

He stressed that significant time and investment was spent restoring the property to its current world-class standards. “We rebuilt a dilapidated government building,” the official stated. “It took 40 years of effort to transform it into a premier hotel. Yet, the actions of the PTI government now seem to have a clear agenda.”

The official also highlighted Serena Hotels’ commitment to its employees, pointing out that no staff members were laid off during the COVID-19 pandemic, contrasting with layoffs at many other hotels in the private sector.

Despite the region’s security challenges, including Operation Rah-e-Haq in 2007 and Operation Rah-e-Rast in 2009, Serena Hotels continued to operate, reinforcing its commitment to maintaining Swat as a safe and attractive tourist destination.

The official also referred to recommendations made during the tenure of Pervez Khattak as chief minister of KP in 2015, in which Advocate General Abdul Latif Yousafzai suggested extending the lease by an additional 30 years in recognition of Serena’s contributions to local tourism. However, the official claimed the provincial government deliberately obstructed this process.

In a pointed accusation, the official alleged that the PTI-led KP government’s actions were part of a strategy to seize control of the property, possibly to transfer it to private interests.

“Serena Hotels would not have been evicted after 40 years of service if there weren’t ulterior motives,” the official claimed.

While the PTI government has often emphasised its commitment to promoting tourism in KP, the closure of Serena Hotels in Swat has raised concerns among industry stakeholders. They say that if this trend continues, international investors may hesitate to invest in the province’s tourism sector.

“If a prominent brand like Serena, which has operated in Swat for four decades despite many challenges, is pushed out, no international brand will risk entering the region under such an anti-investor climate,” industry insiders cautioned.

Copyright Business Recorder, 2026