Hotel Mystic Mountain, nestled deep in the lush forest of a hilltop in Nagarkot, has announced a plan to upgrade to a five-star property, buoyed by continuous demand for hotel rooms by visitors.

Since it opened in July 2017, the modern hexagon-shaped building blocks of the resort have become a hot topic among trend-conscious Nepalis.

After pandemic travel restrictions eased in 2022, Nagarkot has seen a facelift and attracted a string of resorts as it pushes for luxury tourism.

“We are now upgrading to a five-star property by adding 30 rooms,” said Bharat Prasad Badal, executive operation officer of the resort. As per the Tourism Ministry guideline, five-star hotels in the Kathmandu Valley are required to have at least 100 rooms.

The resort has decided to inject another Rs1 billion to add the new rooms. “The project will begin soon,” said Badal.

For more leisure and amusement, guests can find pleasure in the spa and gym, and in the jacuzzi and swimming pool.

The four-star resort, 30 kilometres east of Kathmandu, commenced operations with 33 rooms on July 28, 2017. It started full operation with 72 rooms in 2018.

Carved out of the side of a hilltop and offering a panoramic view of the Himalayas, the resort soon became popular with its unique architecture.

The resort said that demand is coming from the meetings, incentives, conferences, and exhibitions (MICE) segment.

“We have been constructing a conference hall with the capacity to accommodate 350 people. We are also focusing on the MICE segment,” said Badal.

In Nagarkot, the popular hill station near Kathmandu, competition between newly built resorts has been flaring up.

“There is competition in Nepal’s hospitality industry, including in Nagarkot,” said Badal.

“We have been able to maintain high occupancy despite the ongoing intense competition.”

The crisis in Nepal’s tourism caused by the Covid pandemic had led hotels and stakeholders in the sector to rely on domestic tourism as a temporary alternative to international tourists.

Now, with a large number of luxury hotels and resorts opening, the hospitality industry is eagerly waiting for the number of foreign travellers to rise.

International tourists arriving by air for the first seven months of 2023 (January to July) have reached 534,207.

Nepal Tourism Board, the country's tourism promotional body, has targeted to host at least 1 million visitors in 2023, largely by attracting visitors from Asia.

“The arrival scenario looks positive,” said Badal. “Most importantly, the Chinese are coming back.”

The Hotel Mystic Mountain said that it had achieved 60 percent average occupancy during the pre-Covid period.

Occupancy was mainly supported by corporate businesses. But during the pandemic, the resort suffered and the occupancy plunged to nearly zero.

“Now, the business has revived,” said Badal. “We have 75 percent monthly occupancy now.”

The resort has become popular among domestic visitors. For a Nepali, it costs Rs13,500 per night for a deluxe room and Rs16,000 for a suite.

For a foreigner, the per-room night rate ranges from $120 to $150, depending on the services.

The inquiries from foreign and Nepali visitors for the autumn season is also encouraging.

“Based on the inquiries, we are expecting around 90 percent occupancy in the upcoming autumn, which begins in September and lasts until November,” said Badal.

As tourism is thriving in Nagarkot, following the construction of the well-paved roads, the stakeholders are also exploring other activities to prolong visitors' stay.

According to Badal, Nagarkot is planning to start a jungle safari activity and upgrade various hiking trails to make it an adventure destination.