Hotel Forest Inn Limited has officially issued an offer letter for Nepalese citizens working abroad to participate in its Initial Public Offering (IPO). The IPO for migrant workers will open from Magh 4 to Magh 8, 2082, with a provision to extend until Magh 18 in case of under-subscription.
The company’s issued capital stands at Rs. 2 Arba, of which 20 percent (40 lakh units) are being offered to the general public. From this public portion, 10 percent (4 lakh units) have been specifically reserved for Nepalese citizens working abroad.
For this category, the minimum application size has been fixed at 10 units, while the maximum application limit is 2,00,000 units. NIC Asia Capital Limited has been appointed as the issue manager for the offering.
CARE-NP BB- Rating Assigned by CARE Ratings Nepal
CARE Ratings Nepal Limited (CRNL) has assigned a CARE-NP BB- rating to the long-term bank facilities of Hotel Forest Inn Private Limited and reaffirmed the issuer rating of CARE-NP BB- (Is). This rating reflects a moderate risk of default, indicating suitability for investors with a moderate risk appetite.
Greenfield Five-Star Hotel Project in Budhanilkantha
Incorporated on November 22, 2010, Hotel Forest Inn Limited is developing a five-star greenfield hotel project in Budhanilkantha, Kathmandu, spanning 142,783 square feet of land. The property will feature 105 modern guest rooms and is designed to include premium facilities such as swimming pools, spa and wellness centers, conference and banquet halls, and multiple food and beverage outlets.
The hotel has entered into a License Agreement with Intercontinental Hotels Group (IHG) to operate under the globally recognized Holiday Inn brand, strengthening its market positioning and international visibility.
Project Cost and Funding Structure
The total project cost is estimated at Rs. 3,572 million, funded through:
- Rs. 2,120 million via debt
- Rs. 1,020 million through promoter equity
- The remaining Rs. 980 million to be raised through the IPO
Although operations commenced in mid-2024, the company’s capital structure will remain leveraged in the initial phase due to the debt-financed nature of the project.
Strategic Location and Competitive Advantage
Strategically located just 11 kilometers from Tribhuvan International Airport and close to major UNESCO World Heritage Sites, including Kathmandu’s three Durbar Squares, the hotel is ideally positioned to serve international tourists, domestic travelers, and MICE (Meetings, Incentives, Conferences, Exhibitions) activities.
The Holiday Inn brand association is expected to significantly boost global bookings, marketing reach, and service quality through international standard supervision, reservation systems, and staff training.
Industry Outlook and Tourism Growth
Nepal’s tourism industry continues to be a national priority, with the government allocating Rs. 11.91 billion in FY25 to the Ministry of Culture, Tourism, and Civil Aviation. The declaration of 2023–2033 as Tourism Decade further supports long-term sectoral growth.
Increasing international arrivals, rising domestic leisure travel, and expanding MICE activities are driving recovery across Nepal’s hospitality sector.
Risk Factors and Competitive Landscape
Kathmandu’s hospitality sector remains highly competitive and fragmented. Key risks include:
- Pressure on room rates due to competition
- Exposure to economic cycles affecting occupancy
- Geographic concentration risk from operating a single-location property
- Sensitivity to interest rate fluctuations due to leveraged financing
Experienced Leadership and Governance
Hotel Forest Inn Limited is chaired by Ms. Binita Thapa, bringing over two decades of hospitality industry expertise. The management team comprises professionals across hotel operations, finance, marketing, and administration, ensuring strong governance and operational efficiency.
With its IPO opening for Nepalese migrant workers from Magh 4, 2082, Hotel Forest Inn Limited offers investors an opportunity to participate in a strategically located, internationally branded five-star hotel in Kathmandu. Supported by Holiday Inn’s global presence, a prime location, and modern hospitality infrastructure, the project is well-positioned to benefit from Nepal’s long-term tourism growth, making it a promising addition to the country’s hospitality investment landscape.
