Desh Bandhu Basnet is a prominent entrepreneur recognised for his contributions to Nepal’s business and tourism sectors. The owner and chairperson of AB Holdings oversees a diverse portfolio spanning infrastructure development, hospitality, manufacturing, healthcare, and real estate. Basnet has played a key role in bringing renowned international hotel brands to Nepal. He partnered with Accor Group to introduce Nepal’s first Mercure property, the Metropolitan Hotel in Kathmandu. Additionally, he is developing the Manakamana Retreat Resort & Spa in Gorkha, in collaboration with Sarovar Hotels & Resorts, and the Grand Central Hotel in Itahari, associated with Ramada by Wyndham Hotels & Resorts. In an email interview with The Post, Basnet shared insights on the Indian and Chinese markets and the prospects of Nepal’s tourism.

What inspired you to enter Nepal’s hotel industry, and what were the most significant challenges?

I believe Nepal’s tourism industry is an economic driver and a way to showcase the country’s rich heritage to the world. With its stunning landscapes and deep-rooted traditions, Nepal is uniquely positioned to attract travellers seeking authentic, sustainable experiences. I founded this hotel to elevate Nepal’s global appeal by ensuring every guest at Mercure Kathmandu leaves with unforgettable memories and a deeper connection to this extraordinary country. The key challenges included securing international franchise partnerships, navigating local regulations, and maintaining high construction and design standards. Balancing modern hospitality with Nepali cultural authenticity was another significant hurdle.

How does Mercure Kathmandu stand out in Nepal’s competitive hospitality sector?

We emphasise cultural integration by incorporating local architecture, art, and cuisine to offer a uniquely Nepali experience. Our prime location near heritage sites like Pashupatinath and Boudhanath provides guests with easy access to cultural exploration. Exclusive amenities such as a rooftop infinity pool and speciality dining options—Zaiqa (Indian cuisine) and Sopra Italiano (Italian cuisine)—enhance the experience. Our commitment to blending modern luxury with Nepal’s signature warmth and hospitality ensures every guest enjoys a truly memorable stay.

What strategies do you use to attract international and domestic tourists?

By partnering with Accor’s globally recognised Mercure brand, we leverage its prestige to boost our visibility. Our marketing efforts focus on digital campaigns targeting international travellers, particularly from India and China. We also collaborate with local travel agencies, airlines, and the tourism board to strengthen industry connections. To create unforgettable experiences, we offer guided cultural tours, immersive local food journeys, and personalised services infused with Nepali hospitality. Additionally, we cater to corporate travellers by providing top-tier meeting and event facilities, making us a key destination in the MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism sector.

How has Nepal’s tourism industry evolved, and what trends will shape its future?

There is a growing shift toward luxury and experiential travel, with increasing demand for high-end accommodations that offer cultural immersion. Εxperiential tourism, also known as experimental or immersive tourism, is a type of travel that focuses on unique, authentic, and often unconventional experiences. Eco and wellness tourism are also gaining traction, as travellers seek sustainable stays and holistic wellness experiences. Before the pandemic, Nepal saw a steady rise in Chinese tourists, while Indian visitors have surged in recent years, driven by India’s expanding middle class. Given Nepal’s strong connectivity with India and China, this trend is expected to continue, significantly boosting the tourism industry.

How does sustainability factor into your hotel operations?

Sustainability is central to our philosophy. We integrate local materials and craftsmanship in our design while adopting eco-conscious construction methods. Our initiatives include eliminating single-use plastics, implementing advanced waste management systems, and prioritising energy and water conservation. Additionally, we source food locally, support Nepali talent, and promote responsible tourism at every opportunity.

What advice would you give aspiring hotel entrepreneurs in Nepal?

Before entering the hospitality industry, it’s crucial to define your purpose. Ask yourself: Why do I want to start this business? What makes my hotel unique? Identifying a clear value proposition helps establish your brand, attract the right guests, and create a lasting impact in a competitive market. Without this clarity, positioning your property effectively and delivering a standout experience becomes challenging.