The Holiday Inn Express Kathmandu Naxal, located in Ward No. 05, Tangal of Kathmandu Metropolitan City, is set to undergo a significant capacity expansion and infrastructure upgrade. The promoter company, Swornim Hotel Limited, has prepared and submitted an Environmental Impact Assessment (EIA) report for approval through the Ministry of Culture, Tourism and Civil Aviation and the Ministry of Forests and Environment. The proposed expansion aims to transform the existing mid-scale hotel into a larger, more competitive hospitality facility in the heart of Kathmandu’s business district.
Capacity Expansion from 90 to 134 Beds
Currently operating with 90 beds, the hotel is built on its own 1,085.04 square meters of land. Under the expansion plan, the property will increase its capacity to 134 beds, responding to rising demand from both domestic and international travelers.
To support this growth, the company has also secured an additional 1,037.75 square meters of adjoining land on a 15-year lease agreement. This strategic land acquisition is expected to play a key role in accommodating the expanded facilities and services.
New Infrastructure with Modern Hospitality Facilities
At present, the hotel comprises a 12-storey building with a total constructed area of 4,676.28 square meters. Following the upgrade, an additional 10-storey building will be constructed, increasing the total built-up area to 5,056.24 square meters.
The expansion has been designed in compliance with prevailing building codes and urban planning standards, including provisions for open space and parking facilities. Once completed, the upgraded hotel will feature a wide range of modern hospitality services, including guest accommodation, kitchen and restaurant facilities, banquet halls, gymnasium, and a swimming pool. These additions aim to position the hotel as a full-service urban hospitality destination within Kathmandu.
Environmental Considerations and Resource Use
According to the EIA report, the project has incorporated mitigation measures to minimize and control potential environmental impacts. The document outlines environmental management strategies related to construction, resource use, and operational sustainability. The hotel is expected to utilize approximately 48,000 liters of groundwater per day once fully operational. The report has invited stakeholders and the public to submit feedback or suggestions within seven days of publication, ensuring transparency in the approval process.
IPO Preparation Underway
Alongside its physical expansion, Swornim Hotel Limited is also preparing for a public offering. The company submitted an application to the Securities Board of Nepal on Mangsir 16, seeking approval to issue an Initial Public Offering (IPO).
The proposed IPO includes the issuance of 3.8 million ordinary shares worth NPR 38 crores. Global IME Capital has been appointed as the issue and sales manager for the public offering. This move reflects the company’s broader strategy to strengthen its capital base and expand public participation in its hospitality ventures.
Promoter Structure and Corporate Leadership
The company is led by Chairman Naresh Lal Shrestha, who holds the largest stake of 38 percent in the organization. Other board members include Managing Director Maheshwor Shrestha, along with directors Nilima Shrestha, Sandesh Shrestha, Binaya Bhandari, and Ghanshyam Thapa. Swarupa Shrestha serves as the independent director, contributing to corporate governance and oversight within the organization.
Outlook for Kathmandu’s Hospitality Sector
The planned upgrade of Holiday Inn Express Kathmandu Naxal is expected to enhance the city’s mid-to-upscale hotel segment, particularly in the bustling Naxal-Tangal corridor. With growing demand for business travel, tourism, and short-stay accommodation in Kathmandu, the expansion is seen as a timely investment. Industry observers believe that such developments will further strengthen Kathmandu’s position as a competitive urban tourism and business hospitality hub in South Asia.
