IFC‚ FMO invest in Nepal Hospitality and Hotel
KATHMANDU:
International Finance Corporation (IFC) — private sector lending arm of World Bank Group — will invest $3 million in Nepal Hospitality and Hotel Pvt Ltd to develop Marriott Greenfield, a three-star hotel, in the Capital.
The investment will increase Nepal Hospitality’s capacity in the mid-market hotel segment, create jobs, and promote energy-efficient hotel design. The hotel will be operated by international chain Marriott under its Fairfield brand.
In addition to its own investment, IFC will mobilise $3 million from FMO, the Netherlands-based development bank.
These investments will help build skills of those employed in the sector and contribute to the development of local supply chains. IFC will also help Nepal Hospitality and Hotel to adopt green building design and construction principles to implement energy and water-efficiency measures.
Nepal Hospitality and IFC today signed an agreement to mobilise the fund from IFC and FMO in Fairfield Hotel, Thamel.
Commenting on the occasion, Gaurav Agarwal, managing director of Nepal Hospitality and Hotel, said, “This deal, amidst the recent earthquake, reaffirms that the Nepali private sector, IFC, and FMO are committed to economic prosperity in the country. The 110-room Fairfield Kathmandu, the first internationally-branded, professionally-managed mid-market hotel in Nepal, will stimulate tourism and support the economy. The green building design will serve as a model for replication across the industry.”
After completion of the 12-storeyed building, the developers are giving finishing touches to it. Earlier, they had planned to operate the hotel from September. However, due to the earthquake, they have rescheduled the launch date and plan to operate it from early 2016. The developers have invested $12 million for the construction of the hotel.
“IFC remains committed to supporting Nepal as it rebuilds its tourism industry following the devastating earthquake of April 25. Investments that support vital economic industries like tourism, will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to travellers’ needs,” said Kyle F Kelhofer, IFC’s country manager for Bangladesh, Nepal, and Bhutan.
While signing the agreement, IFC’s Country Representative to Nepal Valentino S Bagatsing asserted that this pact signals that Nepal’s tourism will revive in the days to come.
The tourism sector in Nepal accounts for over three per cent of the country’s GDP, five per cent of foreign exchange earnings, and employs approximately half a million people. It also supports significant employment in ancillary industries.
International-standard hotel projects help emerging markets like Nepal attract business and leisure travellers. Even as Thamel is one of the most popular tourist hubs in the Capital, there are no international standards hotel in the area so far.
Source: THT
