Two dozen international hotel brands entered the market in five years

Number of star-rated hotels and resorts: 335, additional 41 hotels and resorts in the permitting process, most of them with international hotel chains signing SAG agreements

Ashad 22, 2083

Suraj Kunwar

Two dozen international hotel brands entered the market in five years

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The number of well-known international brands entering Nepal in the hotel sector has increased significantly in the last five years. Since 2020 alone, more than two dozen such large international 'hotel chains' have entered Nepal. 

The prestigious international hotel brands have entered Nepal at a time when most sectors of the economy are contracting due to the Covid-19 pandemic and the policies adopted by the government since then. According to the Department of Tourism, 41 new hotels and resorts are currently in various stages of the permitting process across the country. Many of them are preparing to sign management agreements with international 'hotel chains'. The number of star-rated hotels and resorts registered with the department has reached 335.

A month ago, Marriott Chairman David Marriott, who manages more than 9,800 hotels worldwide, was present and signed agreements to operate three premium brands, and he also visited other infrastructure. This was one of the highest-profile visits in the hotel management sector of Nepal. 'Nepal has immense potential and we want to expand our services further,' David told Kantipur during his visit to Nepal. 

Marriott currently operates Fairfield, Moxy, Marriott Kathmandu and Aloft in Kathmandu. In the presence of Chairman David, an agreement was signed to operate Marriott's Ritz-Carlton and Westin in partnership with the Chaudhary Group. Similarly, after it was confirmed that Marriott's Luxury Collection would be located in the hotel invested by former President of the Non-Resident Nepali Association Shesh Ghale, David also inspected the hotel building under construction in Lainchaur.

Two dozen international hotel brands entered the market in five years MS Group, which is currently providing services under three brands, is also going to bring JW Marriott. According to Group Chairman Shashikant Agrawal, after Marriott entered Nepal, competition has increased for other businessmen to associate their new hotels with international brands. Not only Kathmandu, international hotel brands are expanding to Rupandehi, Pokhara, Chitwan, Janakpur, Itahari, Dhangadhi, Mustang and Dhulikhel. More than a dozen international hotel brands are affiliated with the Valley, including projects that are currently in operation, under construction, and those with management agreements. At least two dozen foreign brands have come under the management of Nepali hotels. 

These hotels are not built by foreign companies. According to MS Group Chairman Agrawal, the investment, land, and ownership belong to Nepali businessmen. Foreign hotel chains provide their brands, international sales networks, management systems, operating standards, and global customer networks. In return, they charge management fees, royalties, and service fees.

Hotel Association of Nepal (HAN) Chairman Binayak Shah says that international hotel brands are showing increased interest in Nepal. “Earlier, foreign brands were limited to Kathmandu, but now, whenever a new hotel project starts, the first priority is to bring in which international brand,” says Shah.

After Kathmandu, foreign brands are more attracted to Rupandehi. Brands such as Hyatt Regency, Hyatt Palace, Marriott, Crowne Plaza, Golden Tulip, Crowne Plaza, Ramada, Holiday Inn and others have provided or are preparing to provide services in the Bhairahawa and Butwal areas. 

Hyatt Regency has been operating in Kathmandu since 2059 and is preparing to resume services after being damaged during the Gen-G movement. Hilton was also damaged during the same movement. InterContinental Hotels Group (IHG), headquartered in the UK, is also expanding rapidly in Nepal. IHG includes the Holiday Inn, InterContinental and Crowne Plaza brands. 

After Kathmandu, Rupandehi is more attractive to foreign brands. In the Bhairahawa and Butwal areas, brands such as Hyatt Regency, Hyatt Palace, Marriott, Crown Plaza, Golden Tulip, Crown Plaza, Ramada, Holiday Inn have provided or are preparing to provide services.  At one time, the Soaltee Hotel in Kathmandu was operated under Crowne Plaza. Now, Soaltee is operating under its own Nepali brand. According to Sudarshan Chapagain, Vice President of Soaltee Hotels, Soltee is currently operating 10 hotels in Nepal and two hotels in Frankfurt, Germany under its own brand. 

According to him, Solti has been using Marriott's Autograph Collection global booking platform since last year. 'It does not manage the hotel, Marriott members can only book Solti and use their loyalty points,' he said. 

IHG has also entered the Far West. The five-star Holiday Inn under construction in Dhangadhi in partnership with the Chaulani Group is preparing to become the first internationally branded five-star hotel in the Far West province. 

Thailand's hotel group Dusit International has announced its presence in Nepal through two different brands. The Himalayan Resort in Dhulikhel is being operated under Dusit Thani. Similarly, the Lhasa Hotel in Lazimpat has been operating under the Dusit Princess brand since 2023. The Dusit Group is known for its combination of Thai hospitality and international service standards.

Taj Hotels, under the Indian hotel group IHCL (Indian Hotels Company Limited), is operating the Meghauli Serai in Chitwan. The same group's Vivanta brand has been managing a hotel built in Jhamsikhel as a joint venture between the Chaudhary Group and the NE Group. 

Targeting the regional market outside Kathmandu, Indian hotel management companies such as Clarks Hotels and Resorts, Lemon Tree, Maurya and Acme are also expanding their partnerships with Nepali hotels. The Ramada brand under Wyndham Hotels and Resorts is expanding its services in Nepal. Ramadas are operating in Thamel and Dhumbarahi in Kathmandu. Along with this, a Ramada by Wyndham is under construction in Itahari. 

Two dozen international hotel brands entered the market in five years The expansion of the luxury brand Royal Tulip under the Louvre Hotels Group of France is also rapid. Since last year, the Guna Group's hotel in Gwarko has been operating under the Royal Tulip. A resort is also operating in Chitwan under the same brand and is preparing to expand services in Janakpurdham and Bhairahawa. Similarly, the American Best Western is operating two hotels in Gaushala and Godavari. 

Similarly, Radisson Hotel is already operating in Nepal. Mercure under the Accor Group has also entered Nepal. Mercure Hotel is operating in Sukedhara, Kathmandu, with the investment of businessman Ajit Basnet and others. Sintamani, which started in Cambodia, is now operating in Mustang in partnership with Sherpa Hospitality under the Yeti Group.

According to Amritratna Shakya, President of IEG Group, after being associated with an international brand, the hotel gets access to millions of customers around the world at once. 'After branding, the hotel is connected to an international booking network. Bookings start coming in from all over the world through an email or online system. That increases occupancy, increases turnover and reduces investment risk,' he said.

According to him, the world's largest hotel chains now prefer to partner with local investors rather than build hotels themselves. According to Himal Gautam, director of the Department of Tourism and head of the Hotel Division, the relationship between foreign hotel brands and Nepali hotels is one of management services. According to the same agreement, they charge management fees, commissions or royalties.

फिचर

Suraj

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