City Hotel Limited Sees Rise in Net Worth Following Rights Share Issue

City Hotel Limited, the operator of Nepal’s first Hyatt Centric brand hotel, reported an increase in its per-share net worth in the first quarter of FY 2082/83. The net worth rose by Rs. 4.1 to Rs. 84.93 from Rs. 80.83 in the previous quarter. The improvement is attributed to the company’s rights share issuance, with the raised capital planned for loan repayment. This is expected to reduce interest expenses by 30–35% from the Rs. 26.43 crore paid last year.

The company has recently improved operations, introduced new business initiatives, and taken steps to reduce financial burdens, positively impacting revenue and cash flow. It has outlined eleven strategies, including enhancing banquet services, attracting corporate and NGO/INGO events, focusing on local markets, reviewing operations for better returns, and collaborating with future national and international sports events.

City Hotel is also preparing to open a casino within two months, expected to become a high-margin revenue source, along with launching a new gym and spa to attract premium guests. Additionally, the company plans to lease unused hotel spaces to secure long-term rental income and support operating expenses.