The Himachal Government had earlier moved the High Court for execution of the arbitration order in its favour.
The colonial-era Hotel Wildflower Hall is being run by the Oberoi group.
The state government took over the hotel on Saturday, putting an end to over two-decade-old legal dispute. A government spokesperson said the takeover of the hotel had been done as per the High Court order. He added that the Oberoi group owed almost Rs 120 crore to the state government and the matter had been in arbitration with the final order coming in favour of the government.
Government officials, however, clarified that the hotel would continue to run with the same staff and no inconvenience would be caused to guests staying there.