Hotel Sanctuary Lodge Concession Update
12 de March, 2025
The concession contract for Hotel Sanctuary Lodge at Machu Picchu will not be renewed, as the Regional Government of Cusco has decided that the property will be reclaimed for the benefit of the Cusqueños, ending the management by a private company. With the concession set to expire this coming May, Belmond must vacate the site unless a new agreement is reached with the government, which now asserts that this asset should be under regional control rather than operated for profit with minimal local investment.
Key Developments
In an effort to extend its operation, the private company has sought to secure an additional three-year period, citing disruptions caused by the pandemic and other operational challenges, and has even threatened to initiate arbitration proceedings against Gore Cusco. However, Regional Governor Werner Salcedo has firmly declared that the hotel will be reclaimed for the people of Cusco, emphasizing that its management should benefit the community rather than serve as a source of private profit.
Community and Strategic Impact
A press release from Gore Cusco stated, “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.” A technical team has conducted several public meetings with executive authorities, members of the Regional Council, representatives from Belmond, local officials, and leaders from regional social organizations. These discussions have provided detailed insights into the hotel’s current status, including land boundaries and facility conditions, forming the basis for informed decision-making. The overarching goal is to ensure that the recovery and future management of Hotel Sanctuary Lodge not only supports the sustainable development of the region but also secures essential services for all. Opinions in Cusco remain divided, with some advocating for transforming the site into an interpretive center and others pushing for an international tender to retain the luxury lodging option at Machu Picchu.
