Investment pouring in hotel sector

BIRATNAGAR, JAN 27 -

As the country seeks to exploit its untapped tourism potential beyond traditional destinations, the trend of opening new, luxury hotels in eastern cities is on the rise.

In the last three years, the Eastern region has witnessed a tremendous growth in investment in the hotel sector. Many new luxury hotels are being opened and the existing ones are expanding their capacities to cater to increased demand catalysed by a boom in tourism following the end of the Maoist insurgency.

Not only in Biratnagar and Itahari, but millions of rupees is being poured in the industry in areas like Bhedetar and Hiley of Dhankuta. Hotel Xenial, which was opened 15 years ago in Biratnagar with an investment of Rs 110 million and stood a symbol of hospitality in eastern Nepal, now has many competitors.

“Investment in this sector is growing rapidly may be because investors find hotels safer,” said Rajan Shrestha, central member of the Hotel Association of Nepal (HAN).

The election of the Constituent Assembly has given further boost to the industry, said Suresh Bhattarai, president of the Regional Hotel Association. Bhattarai has invested an additional Rs 10 million in his business, Hotel Pacific.

A new hotel — Hotel Purbanchal — is being opened at Biratnagar-05 with an investment of Rs 90 million. It will have 52 rooms and is coming into operation after three months, according to Punya Bhattarai, proprietor of the hotel.

Hotel Panchali, built with an investment of around Rs 150 million, recently came into operation, while Biratnagar-based Hotel Eastern Star has come up with a new management with an investment of Rs 600 million. Eastern Star’s Bhabish Kuamr Shrestha said they have completely renovated the hotel. Rewat Kumar Thapa, who operates Hotel Ratna, is opening Horizon Mountain Restaurant in Hiley with an investment of Rs 500 million. Horizon, with 41 rooms and spread on 45 ropanies of land, will come into operation from the Nepali New year, Thapa said.

A year ago, the eastern Nepal witnessed the entry of famous restaurant chain Naglo as East Naglo. It was set up in Biratnagar with an investment of Rs 20 million. “We expanded our branch there realising the immense potential the place has,” said Tejesh Kakyshapati, owner of East Naglo. He said the area will see more restaurants cropping up as the trend has just begun.

Even businessmen and business groups involved in other businesses are putting money into the hospitality sector. Jayashree Jaju is running Sagar Fine Dining and Lunch, a vegetarian eatery where one can enjoy a number of cuisines, including famous Indian and Chinese. Industrialist Shankar Lal Agrawal has invested Rs 15 million in Aagan Restaurant where one can get veg snacks, lunch and a variety of sweets.

In the last two years, Itahari has seen the opening of more than 200 small and medium restaurants and hotels which an estimated investment of Rs 1 billion. Rabin Gautam, central member of the Federation of Hotel Entrepreneurs of Nepal, said the opening of hotels is expected to enhance tourism in the east.

In Itahari, Ocean Park is being built on 2 bighas and 9 dhurs with an investment of Rs 110 million. The hotel will offer facilities like water fun park that includes swimming pool, artificial sea wave and a resort, according to Dambar Tamang, the owner.

Not only small and medium ones, but also big hotels are coming up in Itahari. Being build with an investment of Rs 400 million, three-star hotel Garima will come into operation within a year, while a four-star hotel named delta is planned at Itahari 8. Industrialist Rawati Raman Dulal is also preparing to operate two hotels investing Rs 250 million.

Bhedetar has witnessed opening of more than 15 hotels in last two years. The trend of opening hotels here increased with the rising trend of holding workshops and seminars. An estimated Rs 200 million has been invested in hotels in Bhedetar in the last two years.

Source: The Kathmandu Post