Nepal's Hospitality Sector Boom : Expansion of Star-Rated Hotels

In recent years, the hospitality industry in Nepal has experienced remarkable growth, as evidenced by the establishment of four new five-star hotels and 16 four-star hotels. This information comes from the Department of Tourism (DoT) and includes well-known establishments such as Hotel The Kingsbury in Birtamod, Hyatt Place in Tahachal, Ichha Hotel in Simara, and Hotel Lhasa International in Lazimpat.

The development of five-star hotels entails considerable investment and has the potential to greatly enhance tourism within the country. For example, Hotel The Kingsbury in Birtamode provides 82 rooms and 100 beds; Hyatt Place in Tahachal offers 153 rooms and 306 beds; Ichcha Hotel in Simara features 89 rooms and 100 beds and Hotel Lhasa International in Lazimpat consists of 107 rooms with combined bed capacity of 177.

As the pandemic eases, there has been an increase in both the opening of star-rated hotels and foreign tourist arrivals, leading to more investments in this sector. Importantly, the growth of star hotels goes beyond Kathmandu and extends to other locations within the country.

Over the past three years, there have been a total of 16 operational four-star hotels – only one being situated in Kathmandu. The remaining hotels are located outside the capital city, highlighting the widespread expansion of this industry throughout the nation. Many hotel entrepreneurs are eager to take advantage of this growth trend by investing millions.

Binayak Shah, president of Hotel Association Nepal (HAN), attributes this rapid advancement to the nation's economic progress. He underscores the potential of Nepal's tourism industry, owing to its strategic location between China and India, and envisions improved connectivity and streamlined infrastructure as essential components in driving increased tourism.

Shah mentions the positive influence that Gautam Buddha, Pokhara Regional International Airport, and Tribhuvan International Airport have had on the hotel sector. The expectation of two more international airports being built has boosted investor confidence, leading to hopes for an increase in foreign tourist arrivals.

Hotels are generally categorized by their star rating, which reflects various standards including service quality, food offerings, cleanliness, parking facilities, and more. Four-star hotels and above typically offer a diverse array of international cuisine, essential amenities such as swimming pools, beauty salons that meet international standards, and sufficient parking capacity.

Rules specific to the Kathmandu Valley mandate minimum room requirements for hotels: one-star hotels require at least 20 rooms; two-star hotels need 40 rooms; three-star hotels must have 60 rooms; four-star hotels necessitate 80 rooms; five-star hotels call for a minimum of 100 rooms; and five-star deluxe hotels must provide no fewer than 150 rooms.