KATHMANDU, Dec 28: As Nepal’s tourism potential continues to grow, the number of well-equipped hotels opening across the country has surged. Over the past five years, hotel development has accelerated, with new establishments opening alongside expansions of existing hotels.
Investors have increased their investment in hotels, targeting both domestic and international tourists. According to Liladhar Awasthi, information officer at the Department of Tourism, the country’s tourism potential is the main driver for investment. He said that government prioritization of tourism has further encouraged investors.
“Hotel investment has been continuously increasing. Hundreds of hotels are opening, and a significant number are under construction,” Awasthi said. He noted that recent legislation has granted the hotel industry the status of a nationally prioritized sector, providing additional incentives to investors.
From Fiscal Year (FY) 2020/21 to 2024/25, 348 hotels opened, offering a total of 16,350 rooms and 25,892 beds. According to the National Hotel and Restaurant Survey 2081, the country has 142,223 accommodation and food service establishments, with a total investment of Rs 5.43 trillion, with more added since then.
78 hotels including star hotels listed for quarantining air pas...
Binayak Shah, president of the Hotel Association of Nepal, said that while hotels now have the capacity to serve about 3.5 million tourists annually, only around 1.2 million tourists currently visit. “With increased hotel capacity, efforts must be made to attract more foreign tourists,” he added.
Among the hotels opened in the past five years, 44 are one-star with 1,028 rooms and 1,779 beds, 49 are two-star with 1,871 rooms and 3,241 beds, 37 are three-star with 2,256 rooms and 3,784 beds, 40 are four-star with 2,864 rooms and 4,315 beds, 27 are five-star with 3,624 rooms and 5,351 beds, and three are five-star deluxe with 555 rooms and 620 beds.
Additionally, three luxury boutique/heritage five-star hotels have 245 rooms and 455 beds, five deluxe/heritage four-star hotels have 305 rooms and 439 beds, one normal heritage three-star hotel has 92 rooms and 99 beds, 127 standard resorts have 2,812 rooms and 4,748 beds, nine deluxe resorts have 452 rooms and 563 beds, and three luxury resorts have 246 rooms and 398 beds, according to the Department of Tourism.
According to Dinesh Kumar Chuke, president of the Hotel Entrepreneurs’ Federation of Nepal, collaborations between large business groups and international hotels have benefited the local hotel industry, encouraging more investments in both large and small hotels.
Rising domestic tourism, lower and more accessible bank interest rates, and assured returns on investment have also contributed to the growth of hotels and resorts. In fiscal year 2081/82, one five-star deluxe, seven five-star, six four-star, and three deluxe resorts were issued licenses or renewed permits, the Department of Tourism said.
Hotels and resorts play a crucial role in providing the necessary infrastructure for tourists. Reflecting this, high-quality hotels and resorts continue to develop and expand across Nepal.
Currently, the increase in domestic and international investment, longer tourist stays, the entry of international hotel chains, and active hotel construction at regional and local levels are positive signs. The Department of Tourism stated that in the coming years, the hotel sector will play a key role in promoting sustainable tourism, innovative services, and an investment-friendly environment.
