CAAN luxury hotel plan gets nod
KATHMANDU, DEC 17 -
The Finance Ministry has approved the proposal of the Civil Aviation Authority of Nepal (CAAN) to build a five-star airport hotel under the build-own-operate-transfer (BOOT) modality on its land at Sinamangal, Kathmandu.
CAAN had asked for the go-ahead last January through the Tourism Ministry, and the Finance Ministry gave its okay on Nov 7. Tourism Ministry sources said that the proposal would be sent to the Cabinet for its final approval. It has asked CAAN to submit complete details of the land before it sends the proposal to the Cabinet.
According to CAAN’s plan, it will lease its 116-ropani plot for at least 30 years after which the land and the hotel will be returned to it. The rental amount has not been disclosed.
CAAN officials said the move was intended to make commercial use of its land which has been underutilized despite being located in a prime area of the city.
They said the plan was aimed at facilitating tourism and offering accommodation to travellers passing through Tribhuvan International Airport (TIA). CAAN’s TIA Improvement Project Office and an Armed Police Force (APF) unit are currently occupying the plot.
The officials added that the concept to build an airport hotel under the public-private partnership model could create more value for Nepal’s fast-growing tourism industry, and it could be a big source of revenue for the government.
The Tourism and Home ministries and CAAN have agreed to relocate the APF unit to Nalinchowk if the government approves the project, said CAAN. Officials said they would issue a letter of intent (LoI) for prospective developers as soon as the government approves the scheme.
With rising tourism leading to increased demand for accommodation, a number of global hotel chains have planned to enter Nepal. Non-resident Nepali Shesh Ghale is building a five-star hotel in Kathmandu. The property will
be known as the Sheraton Kathmandu Hotel .
Ghale’s MIT Group Holding Nepal has signed an agreement with Starwood Hotel s and Resort Worldwide Inc to implement the project. Slated to open in February 2018, the 225-room Sheraton Kathmandu Hotel will be managed by Starwood Hotel s & Resorts.
Similarly, the Nepal Hospitality Group (NHG) has signed a management agreement with a subsidiary of Marriott International to open a four-star hotel named the Fairfield by Marriott Kathmandu.
International brand Marriott will look after the management of the Fairfield by Marriott Kathmandu. The NHG is a group company of the MS Group, one of Nepal’s leading business conglomerates.
At present, there are 10 five-star hotels in Nepal-eight in Kathmandu and two in Pokhara. The average annual occupancy rate of these five-star properties stands at around 65 percent.
These properties produce 641,670 room nights annually.
Nepal welcomed 803,092 visitors last year among whom 204,834 came overland.
(Source: The Kathmandu Post)
