Everest Hospitality and Hotel has announced that its 235-room five-star deluxe hotel in Naxal is slated to open next March.

It will be managed by Marriott International, a leading hotel chain based in Maryland, US. This is the second hotel in Nepal being managed by the international hotel chain management company after the Fairfield by Marriott Kathmandu.

“We have targeted making a soft launch of the hotel in eight months,” said Shashi Kant Agarwal, chairman of the Everest Hospitality Group. A consortium of banks led by NMB Bank has financed the Rs3.5 billion project, he said. The consortium has put up 80 percent of the capital, Agarwal added.

The proposed hotel will be the first five-star deluxe hotel in Nepal after its completion. It will be spread over 13 ropanis and have a vertical multi-storey parking of up to 10-storeys.

The company will announce the construction of another hotel in Janakpur, Butwal or Pokhara within two-three months which will also be managed by Marriott.

“Yes, tourism prospects are promising. If marketed properly, it’s not difficult to bring 2.5 million tourists annually within five years,” said Agarwal. “However, the biggest headache is the crumbling Tribhuvan International Airport.”  The Fairfield by Marriott Kathmandu launched commercially on June 1, marking Marriott International’s entry into Nepal and further expanding its footprint in South Asia. 

The three-star, 115-room property lies close to popular tourist attractions like the Narayanhiti Palace Museum, Garden of Dreams and Kathmandu Durbar Square. It is conveniently situated 5 km from the airport.

IFC, a member of the World Bank, has invested $2.75 million in the hotel. In addition to its own investment, IFC has mobilized a further $2.75 million investment from FMO, a Netherland-based development bank, in the Fairfield by Marriott Kathmandu.

The IFC has accorded high priority to Nepal’s private sector particularly in infrastructure, agro business, value-added manufacturing and tourism, said Wendy Werner, IFC’s country manager.

“We believe tourism is a key area that can generate income and jobs,” said Werner. “Nepal’s tourism has shown resilience after the devastating 2015 earthquakes, and arrival numbers are going to increase in the coming days,” she said, speaking at a programme entitled ‘Sustainable Growth Through Tourism’ on Tuesday.

As Nepal aspires to become a middle income country by 2030, the development of tourism will be vital as it will drive inclusive growth, Werner said. 

Nepal Rastra Bank Deputy Governor Shiba Raj Shrestha said that despite having potential to grow, Nepal’s tourism has been constrained by infrastructural bottlenecks. As the investment climate in Nepal is becoming favorable, it will open more avenues for investors to invest in Nepal, he added. 

Deepak Raj Joshi, CEO of the Nepal Tourism Board, said such investments in the hospitality industry gives confidence not only to the local economy but also encourage investors from outside. “Despite some odds, we have to make efforts for the development of infrastructure and joint marketing of Nepal.”