"Taj Hotels Resorts and Palaces and Mallani Hotels and Restaurants (Mallani Hotels) have decided mutually to discontinue the management contract for The Gateway Hotel Rawalkot Jaisalmer," the company said in a release.
The Taj group will cease managing the hotel from March 31, 2016.
"The company remains fully committed to honouring all its contractual obligations to stakeholders for the remaining period of management contract," a Taj spokesperson said.
Established in 1901, Taj Hotels Resorts and Palaces, part of the Tata Group, comprises 96 hotels in 61 locations across the globe, including presence in India, North America, United Kingdom, Africa, Middle East, Malaysia, Sri Lanka, Maldives and Bhutan.