The Government Circuit House located behind the Somnath Mahadev Temple along the Arabian Sea coast will now be operated by a private firm, following a state government decision to adopt a lease model due to recurring financial losses.
The move comes after authorities found it financially unviable to continue running the guest house. The decision is also aimed at offering hotel-like, premium amenities to devotees, especially as the Somnath temple area already has a sufficient number of mid-range accommodations and dharamshalas.
Officials said the government was spending around Rs14–15 lakh per month on the facility, while earning only Rs2–2.5 lakh in revenue. To address this gap, the property has been leased to Ahmedabad-based McWAY Managements Limited at an annual rent of approximately Rs81 lakh through a tender process. The company took over operations on March 16, 2026.
In a similar initiative, the government has begun the tendering process to hand over the management of circuit houses in Ambaji and Dwarka to private operators, with the aim of improving facilities for pilgrims.
Built in 2022 at a cost of Rs30.55 crore, the four-storey circuit house spans 15,000 square metres. It features two VVIP suites, seven VVIP rooms, eight VIP rooms, and 24 deluxe rooms. The premises also include a 200-seat auditorium, a conference hall, and modern kitchen facilities.
As part of the agreement, around eight rooms will continue to be offered at government-prescribed rates, with a standard operating procedure (SOP) currently being finalised.
Under the new private management, room tariffs have been revised to ₹7,100 for VVIP rooms, ₹6,200 for VIP rooms, and Rs4,200 for deluxe rooms. Earlier, when the facility was government-run, tariffs were around Rs2,800 per room.