Guwahati, Aug. 31: Hotel Brahmaputra, which was set up 30 years ago in the city and became a landmark property, downed its shutter this evening.

The Assam Tourism Development Corporation (ATDC)-operated hotel has offered a severance package of 30-months' full salary to 56 permanent employees while 50 contractual employees who moved Gauhati High Court seeking a similar package, await a hearing on Monday.

Set up in 1987, the three-star hotel served customers for the last day today after the Assam government decided to merge it with the adjoining circuit house and convert it into a state guest house-cum-convention centre on the lines of the India Habitat Centre in New Delhi.

'It is definitely an emotional day as some employees have been associated with the hotel since it started operations. It became a landmark of the city and becoming part of it was a cause of pride for all of us,' said a permanent employee.

The hotel was set up as a joint venture between the Indian Tourism Development Corporation (ITDC) and the Assam government but was handed over to Dispur after the Centre approved divestment of hotels and properties of the ITDC in May this year. Subsequently, the ATDC was given responsibility of running the hotel from July.

The corporation cited losses of around Rs 15 lakh per month as the reason for closing down the hotel while many employees blamed its lack of interest to run the property.

'The hotel reported Rs 55-lakh profit in 2015 but business dwindled after two five-star hotels, Radisson Blu and Vivanta by Taj, opened. But if the government provides us little support we still can streamline our business model and make a profit again,' said another senior hotel employee.

'Some other three-star private hotels are still doing good business in the city. The state government should have taken steps to clear the bills of over Rs 4 crore pending with various government departments and private parties,' he said.

The state government decided to convert the hotel situated on the bank of the Brahmaputra and adjacent to the high court into a state guesthouse as chief minister Sarbananda Sonowal and former chief minister Tarun Gogoi are occupying the two state guesthouses at Kharguli near Raj Bhavan and atop Koinadhara hills at Khanapara respectively.

Sources said after the BJP-led government came to power in May last year, Sonowal allowed Gogoi to live in Koinadhara and occupied the Brahmaputra guesthouse.

Ranjit Purkayastha, a 55-year-old lawyer, turned nostalgic. 'Having dinner or lunch in the hotel became a style statement for many of us.'