Faisal Town to redevelop Lahore’s Services International Hotel into five-star property

Faisal Town Group has acquired Lahore’s Services International Hotel (SIH) and plans to redevelop the site into a five-star hotel.

The privatisation of SIH was concluded in November 2024, with Faisal Town emerging as the successful bidder in an open auction conducted by the Privatisation Commission (PC).

Located on Shahrah-e-Quaid-e-Azam (formerly Mall Road), SIH holds historical significance in Lahore’s urban landscape. The area is known for its blend of colonial-era architecture and modern development, making it a key commercial and cultural hub. The hotel has long been a recognisable landmark, and its redevelopment marks a shift in the city’s evolving hospitality sector.

Faisal Town confirmed the acquisition in a recent statement, outlining its plans for redevelopment.

“We’re thrilled to announce the acquisition of the Iconic Services International Hotel on Mall Road, Lahore. This is just the beginning — as we transform this historic landmark into a world-class 5-star luxury destination, we’re also gearing up for a series of ambitious nationwide projects,” it said in a post on Instagram.

The project aims to upgrade hospitality infrastructure in Lahore, catering to international travelers, domestic tourism, and business events. Lahore’s existing hospitality sector has struggled to keep up with increasing demand, and the redevelopment of SIH is expected to help bridge this gap.

The privatisation of SIH is part of broader government-led efforts to attract private sector investment into underutilised state-owned assets. Faisal Town’s acquisition reflects the growing role of private developers in reshaping urban spaces. The company has previously undertaken multiple real estate projects across Pakistan, contributing to residential and commercial developments.

Lahore’s hospitality sector has seen growing demand for high-end accommodations, with limited options currently available. The redevelopment of SIH is expected to introduce a new hotel operator to the Pakistani market. Faisal Town is reportedly in discussions with an international five-star hotel chain to manage the property. While details of the agreement are yet to be finalised, the move could set a precedent for further collaborations between international hospitality brands and local developers in Pakistan.

The approved design includes a 245-foot-high structure, which will be among the tallest in the vicinity. The development will require advanced engineering solutions, particularly for integrating modern infrastructure with the existing urban fabric. Plans include multi-level basement parking to accommodate visitors, addressing one of the common challenges faced by commercial properties in central Lahore.

The redevelopment is also expected to have economic implications, potentially generating employment in construction, hospitality, and related sectors. The project could attract both business and leisure travelers, enhancing Lahore’s position as a destination for international tourism and corporate events.

However, integrating a contemporary high-rise with the architectural and cultural identity of Mall Road will require careful planning. The area is home to several heritage structures, and developments of this scale often raise concerns about preserving historical aesthetics. Stakeholder engagement, including consultations with urban planners and heritage experts, may play a crucial role in shaping the project’s final design.

The project is currently in the planning phase, with construction expected to begin in the fourth quarter of 2025. Its progress will be closely watched as a potential indicator of private sector-led transformation in Pakistan’s hospitality industry.