Rest of the WorldMore than US$623 million invested in high-end hotels, with most planned for Bhairahawa

Nepal adds dozen 5-star hotels in building boom

Nepal is expected to welcome at least a dozen five-star hotels across the country as a hotel boom heats up.
Nepal is expected to welcome at least a dozen five-star hotels across the country as a hotel boom heats up. Photo Credit: Olmoroz/Getty Images
Currently, the proposed five-star hotels are:

•    Dwarika’s Inn Jhapa
•    Crown Plaza Jhapa
•    Hotel Grand Prince Jhapa
•    Pawan Palace Bhairahawa
•    Siddhartha Int’l Bhairahawa
•    Hotel Garima Itahari
•    Sheraton Kathmandu Kathmandu
•    DoubleTree by Hilton Kathmandu
•    City Hotel Kathmandu
•    CG Hotels Kathmandu
•    Hotel Centurion Biratnagar
•    Soaltee Pokhara
•    Unnamed Nagarkot
•    Unnamed Budhanilkantha

(Source: Department of Tourism)

NEPAL – Nepal’s hotel industry is once again on a building spree, with at least a dozen five-star hotels being built across the country. There is optimism that Visit Nepal 2020 will help draw two million tourists and fuel sustained tourism growth in the years ahead.

More than Rs45 billion (US$623 million) has been invested in the hospitality industry, according to industry investors in a report by The Kathmandu Post.

Developers are investing in high-end hotels, with most being planned for Bhairahawa, the city that will soon receive the country’s second international airport.

In this year along, Nepal’s Department of Tourism has awarded a five-star rating to four hotels – Soaltee Westend Premier and Hotel Central Plaza in Nepalgunj, and Aloft and Marriott Hotel in Kathmandu – that now brings the total number of hotels in the category to 15.

In 2017, the department granted the five-star rating to Tiger Palace Resort, a 100-room integrated casino resort.

The Department of Tourism said that at least five proposed five-star hotels have been constructed after completing a mandatory environmental impact assessment report. Five more are in the process of receiving approval for the evaluation, with a few are in the design phase.

Hotels with over 100 beds are required to complete an environmental impact assessment before starting construction.

In 2017, the Hotel Association Nepal issued a white paper urging the government to rein in the overheated hotel sector. The paper asked the government to assess the demand and supply of hotel rooms and raise the criteria for hotel expansion.

“We should be careful as these new hotels could create additional rooms rather than competing over prices and replacing good old hotels,” stated the white paper.

“If these hotels go out of business, banks which have invested heavily in the sector will have problems, and it will eventually hurt the economy.”

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