Do you want to buy a Palace in India? (Part I)

Want to buy a fort? Hundreds on sale in India!

Eighty kilometres from Ajmer in Rajasthan, on a hillock overlooking the village below, stands the five-storey Badnor Fort.

Flanked by lakes Vinod Sagar and Akshay Sagar, the 500-year-old fort is up for grabs. The government of Rajasthan is ready to offer the 4.5-acre site on a 60-year lease for a 60- to 65-room heritage hotel to the highest bidder.

A few hours' drive from here lies Sarwar Fort, once a heavily fortified structure with a single entrance and a moat that runs around it. Built in the late 17th or early 18th century, this one is also on the block.

There's more available elsewhere in the state. In Udaipur, a private haveli-turned-heritage hotel is up for sale for Rs 6 crore (Rs 60 million).

Want to buy a fort? Hundreds on sale in India

In Nagore, an old fort with 35 rooms is on sale for Rs 5 crore (Rs 50 million). In Bundi, a 125-room fort can be bought for Rs 14 crore (Rs 140 million).

A 150-year-old village castle in Barmer with private stables and temples is available on a 15-year lease for Rs 5 lakh (Rs 500,000) a year.

Across Rajasthan, formed by the merger of 22 princely states after Independence, over a hundred forts, and hundreds of old havelis, have been put up for sale, lease or partnership by the government as well as private owners.

The prices range from as little as Rs 1 lakh (Rs 100,000) for a dilapidated haveli to Rs 35 crore (Rs 350 million) for a functional heritage hotel.

Rajasthan isn't alone. 'In Uttar Pradesh, there are four or five forts-cum-havelis in Bijnor and Bulandshahr which their owners want to lease out,' says Vikramjeet Singh, who owns Kuchesar Mud Fort in Bulandshahr, which his forefathers built in 1734. It was converted into a heritage hotel in 1998.

Up in the hills of Himachal Pradesh, 10 or 12 forts and many more havelis are looking for buyers. 'There are forts in and around Solan, Shimla, Sirmour, Kangra and Una, but only a handful of these have so far been converted into heritage hotels,' says Vijayendra Singh, whose ancestors built Nalagarh Fort in 1421, which he converted into a hotel 15 years ago.

Recently, descendants of the former royals of Gujarat met to explore the possibilities of converting their palaces and forts into heritage hotels.

Several of them are keen on developing these ancient properties  -- there are about 300 across the state -- in partnership with top hoteliers.

Hoteliers know there's an opportunity here. WelcomHeritage, the equal joint venture between ITC and the former royal family of Jodhpur, operates more than 50 such hotels.

The supply has been good enough for the company to put together 'circuits' of heritage properties in Himachal Pradesh and Rajasthan.

Aman Nath and Francis Wacziarg of Neemrana Hotels have done 24 heritage properties so far. The Indian Heritage Hotels Association, based in Jaipur, has 160 members across the country.

The business logic is simple. Foreigners love the heritage experience. The improvement in air connectivity and the road network has made Indian customers also look at such experiences with new interest.

Unlike modern hotels, these forts and havelis sell not just the hotel experience but also local food, art and life.

At the top end of the heritage market are Falaknuma Palace in Hyderabad, Ram Bagh Palace in Jaipur, Umaid Bhawan Palace in Jodhpur and Shiv Niwas Palace in Udaipur.

Rooms here can cost up to Rs 25,000 a day. Most other heritage properties operate at Rs 3,500-8,000 a day.

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