Kathmandu – With the steady rise in international tourist arrivals to Nepal, investment in the hotel and tourism sector has also seen a significant uptick. According to the Nepal Tourism Board, a total of 1,147,567 foreign tourists visited Nepal between January and December 2024. This figure confirms Nepal’s strong and growing appeal as a tourist destination, and industry stakeholders are responding with increased investment.

As tourism numbers surge, business interest in the hospitality sector is accelerating. Notably, investment in five-star hotels is on the rise. With increasing hotel infrastructure and capital infusion, more hotel and tourism companies are seeking listings on the secondary market.

To date, six companies in the hotel and tourism group have been listed on the Nepal Stock Exchange (NEPSE), namely: City Hotel, Soaltee Hotel, Chandragiri Hills, Oriental Hotels, and Taragaon Regency Hotel, alongside Kalinchowk Darshan Cable Car. In addition, nine more companies have applied for approval to be listed on NEPSE and are awaiting permission from the Securities Board of Nepal (SEBON). These include:

• Apex Hospitality
• Hotel Forest Inn
• Orchid Holdings
• Akama Hotel
• Thamel Plaza Hotel & Suites
• Varnabas Museum & Hotel
• Annapurna Cable Car
• Bandipur Cable Car
• Mountain Glory

IPOs Worth Rs 3.63 Billion on the Way

Several companies have submitted proposals to SEBON for Initial Public Offerings (IPOs) worth a total of Rs 3.63 billion:

• Apex Hospitality has requested approval to issue 2.4 million shares at Rs 100 per share, totaling Rs 240 million.
• Hotel Forest Inn plans to float 9.8 million shares worth Rs 980 million.
• Orchid Holdings has proposed 11.5 million shares, amounting to Rs 1.15 billion.
• Akama Hotel is planning a 4.5 million share IPO at Rs 50 per share, targeting Rs 225 million.
• Thamel Plaza aims to issue 1 million shares worth Rs 100 million.
• Varnabas Museum & Hotel has proposed 396,000 shares worth Rs 39.6 million.
• Annapurna Cable Car is seeking approval for a 3.1 million share IPO worth Rs 310 million.
• Bandipur Cable Car is planning to issue 3.06 million shares worth Rs 306 million.
• Mountain Glory intends to offer 4 million shares, totaling Rs 400 million.

Current Listed Companies and Their Share Volumes

Here is the listing status of companies already listed under the hotel and tourism group in NEPSE:

• City Hotel: 16.74 million shares worth Rs 1.674 billion
• Kalinchowk Darshan: 6 million shares worth Rs 600 million
• Soaltee Hotel: 12.18 million shares valued at Rs 1.218 billion
• Chandragiri Hills: 15.34 million shares worth Rs 1.534 billion
• Oriental Hotels: 11.84 million shares totaling Rs 1.184 billion
• Taragaon Regency Hotel: 19.62 million shares worth Rs 1.962 billion

Dividend History of Listed Companies

Although six companies are listed under the hotel and tourism category on NEPSE, only three have consistently declared dividends. According to NEPSE data, Soaltee Hotel, Oriental Hotels, and Taragaon Regency Hotel are the only ones to offer returns to investors so far.

Among them, Soaltee Hotel leads in dividend distribution, having declared 36% in FY 2080/81 and 31% in FY 2079/80.
Taragaon Regency Hotel declared 11% for FY 2080/81 and 15% the year prior.
Oriental Hotels provided 5.26316% in FY 2080/81 and 5% in FY 2079/80.

Despite the enthusiasm in market listings, profitability and dividend capacity remain key concerns for investors in the hospitality sector.