KATHMANDU, July 17: Nepal's growing tourism potential is drawing billions of rupees in domestic and foreign investment into the hotel industry, with global hospitality brands expanding their presence despite the country's relatively modest tourist arrivals.
The latest entrant is Marriott International, which has partnered with CG Hospitality Global to launch two ultra-luxury hotels in Nepal under The Ritz-Carlton and Westin brands. The Ritz Carlton, which operates more than 100 luxury hotels and resorts in over 30 countries, is making its Nepal debut through a joint venture with the Chaudhary Group.
The Ritz Carlton Kathmandu, now under construction in Thamel, is expected to cost around Rs 15 billion, or about 100 million US dollars. Built on nine ropanis of land, the project will feature 150 luxury rooms, branded residences, a commercial complex and a casino. CG Hospitality has also signed an agreement with Marriott International to develop The Westin Kathmandu, another five-star property.
According to the National Statistics Office's Hotel and Restaurant Survey, the hospitality sector attracted Rs 543 billion in investment two years ago. Since then, another Rs 100 billion has flowed into the industry, taking total investment to more than Rs 650 billion, according to the Department of Tourism.
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Nepal receives around 1.2 million foreign tourists annually, while domestic tourism has also expanded as more Nepalis travel within the country.
Tourism Department Director General Ram Krishna Lamichhane said increasing tourism opportunities have encouraged investors to build more hotels. International hotel chains continue to expand, while domestic investors are also pouring billions into new hospitality projects.
Investment has been particularly strong in Pokhara, where new luxury hotels continue to emerge through foreign management partnerships and direct investment.
Despite the surge in investment, the Hotel Association Nepal says the country already has accommodation capacity for nearly four million tourists each year, more than three times current international arrivals.
HAN President Binayak Shah said Nepal now has quality hotels capable of serving far more visitors, but urged the government to focus on bringing more tourists instead of only encouraging new investments.
He said regular international flights from Pokhara and Bhairahawa, along with stronger promotion in India and China, could significantly boost visitor numbers. Lamichhane added that the completion of the Kathmandu Tarai Fast Track would further increase arrivals from India.
Global brands already operating in Nepal include Hyatt, Marriott, Hilton and Radisson. Hyatt Regency Kathmandu remains one of Nepal's earliest international branded hotels, while Kathmandu Marriott and Hilton Kathmandu have strengthened the capital's luxury hospitality market.
The Ritz Carlton Kathmandu and The Westin Kathmandu, being developed by CG Hospitality in partnership with IEG Group, IJ Group and Sharma and Company, are expected to further elevate Nepal's luxury tourism profile.
According to the Department of Industry, foreign investment in tourism has mainly come from the United States, India, China, Hong Kong, Singapore, South Korea, Japan and the United Kingdom.
Industry officials believe international hotel brands will help attract high spending visitors, generate employment, increase foreign exchange earnings and improve service standards across Nepal's hospitality sector.
The National Statistics Office reports that Nepal has more than 142,000 establishments providing accommodation and food services, including over 12,000 hotels. The number has continued to rise since the survey.
The Department of Tourism currently lists more than 350 classified hotels, ranging from one star to five-star deluxe. Nepal has three five-star deluxe hotels, 28 five-star hotels, 40 four-star hotels, 37 three-star hotels, 49 two-star hotels and 44 one-star hotels. Most premium hotels are concentrated in Kathmandu Valley, Pokhara and Lumbini, with new projects continuing to reshape Nepal's hospitality landscape.
