Cost Per Room of the 5-Star Hotel - Dusit Thani Himalayan Resort and Spa is Expected to Cost More than Rs. 3 Crores

At the Dusit Thani Himalayan Resort and Spa Hotel, which is being built in Dhulikhel in Kavre, a single room will typically cost more than Rs 3 crore to build. Despite a goal to start operations in July of last year, the cost is rising daily as a result of the building work's delay.

The updated cost of the project is NPR 1,730 million after a 36 percent increase in the hotel's building costs over a period of 1.5 years. Along with the cost of the land, the amount for physical infrastructure, internal and external infrastructure, and bank loan interest burden are calculated in the building cost per room.

Construction on the project began in July 2018 with a July 2021 completion date as the initial goal. However, the project has only made 70% of the projected financial progress as of September 2022 because of the influence of Covid19 on the construction schedule and sporadic structural alterations in the project design.

In accordance with the capital structure of a 51:49 ratio, a credit rating was initially assigned for a bank loan of NPR 800 million but is now assigned for a bank loan of NPR 1,040 Million. Now, the debt-to-capital ratio is 63:37. When the hotel first begins to operate commercially, this is likely to stifle its financial profile and debt coverage indications until it reaches a certain level of stabilization.

The opulent mountaintop resort will be situated in the center of Nepal, little over an hour's drive from Kathmandu and Tribhuvan International Airport (KTM). It will have 44 elegant guest rooms and 20 unique villas, each offering stunning views of the beautiful Himalayan range.

Namo Buddha, a small village which houses the ancient Thrangu Tashi Yangtse Monastery, one of the most important Buddhist pilgrimage sites in Nepal, is less than ten minutes away by car. Dhulikhel, the administrative centre of Kavrepalanchok District, whose old town is home to many Hindu shrines and Buddhist stupa, is also located nearby

About the Company:

OACPL, also known as Omstone Asia Capital (Nepal) Private Limited, was established in December 2014. Under the franchise of the Dusit Thani hotel chain, OACPL is a special purpose vehicle (SPV) created for the purpose of developing and managing a 5-star resort facility in the Dhulikhel neighborhood of Kathmandu (a Thailand-based hospitality Group). Both Mr. Ramesh Hamal (a Nepalese businessman with prior hotel sector expertise across Southeast Asia and the Caribbean) and Mr. Vishnu Mor (an Indian businessman with large stakes in the Indian palm oil industry) have stock in OACPL.

Ramesh Hamal, a resident of Nepal and the chairman of Securities Board (SEBON), and businessman Bishnu Mor, who is of Indian descent, are among the hotel's promoters. They are both novice hoteliers with no prior experience. For the purpose of operating and managing the hotel for a term of ten years, a contract has been struck with the Dusit Thani Group of Thailand.