The concession contract for Hotel Sanctuary Lodge at Machu Picchu will not be renewed.
According to the Regional Government of Cusco, the property will be “reclaimed” for the benefit of the Cusqueños, and a private company will no longer manage it.
The concession for the hotel expires this coming May. At that point, Belmond must vacate the site unless a new agreement is signed with the Regional Government of Cusco, which owns the property.
In response, the private company has stated that it is seeking to operate the site for an additional three years, arguing that factors such as the pandemic and other issues disrupted normal operations. They have even threatened to initiate arbitration proceedings against Gore Cusco.
However, Regional Governor Werner Salcedo recently declared that Hotel Sanctuary Lodge will be “reclaimed” for the people of Cusco. He stressed that this asset should be managed by the regional government rather than by private entities, noting that the current operators merely profit from the property while allocating minimal budgetary resources to Cusco.
“We reaffirm our commitment to the community and the citizens of Cusco. The recovery and management of the hotel will be a joint effort between the Regional Government of Cusco, the Regional Council, and the municipal authorities of Urubamba and Machu Picchu. A transfer commission has already been formed and is actively working to ensure the inclusive and transparent participation of all stakeholders”, stated a Gore Cusco press release.
A technical team from Gore Cusco has held several public meetings with executive authorities, members of the Regional Council, representatives from Belmond, local officials, and leaders from regional social organizations. These meetings have provided detailed insights into the hotel’s current situation, including land boundaries and the state of the facilities, enabling an informed decision based on accurate and up-to-date data.
“We reiterate our commitment to work in a coordinated and transparent manner with all institutions and social organizations in the region. The recovery and future management of Hotel Sanctuary Lodge will benefit the people of Cusco, support the sustainable development of our region, and ensure the provision of essential services for all,” concluded the Cusco Regional Governor.
FACT: Opinions in Cusco are divided. Some authorities believe the site should cease operating as a hotel and instead become an interpretive center, while others in the tourism sector advocate for an international tender to select a new operator, ensuring that the luxury lodging option at Machu Picchu remains available.
