Doleshwor Village Resort and Farm House Limited (DVRL), a mid-scale hospitality company based in Suryabinayak Municipality, has officially submitted its Initial Public Offering (IPO) proposal to the Securities Board of Nepal (SEBON), marking a significant step toward entering Nepal’s capital market. According to the proposal, the company plans to issue 1,620,000 shares at a par value of Rs 100 per share, aiming to raise a total of Rs 16.20 crore. The IPO proposal has now been added to SEBON’s pipeline, and the company will be eligible to float shares to the general public only after receiving regulatory approval.
Doleshwor Village Resort and Farm House Limited (DVRL) has appointed Citizens Capital Limited as the issue manager for the public offering. The move reflects the Doleshwor Village Resort and Farm House Limited (DVRL)’s broader strategy to expand its operations and tap into the growing opportunities in Nepal’s tourism and hospitality sector.
Expansion Plans to Boost Capacity and Services
Currently operating with 15 rooms and basic hospitality services, Doleshwor Village Resort and Farm House Limited (DVRL) has announced an ambitious expansion plan aimed at transforming the property into a more competitive resort destination. The Doleshwor Village Resort and Farm House Limited (DVRL) is undertaking a capacity upgrade that will increase the number of rooms to 40, alongside the addition of modern amenities such as a swimming pool and spa facilities.
The total estimated cost of the expansion project stands at Rs 150 million, which will be financed through a mix of equity and debt in a ratio of 80:20. This includes Rs 120 million in equity and Rs 30 million in debt financing. The funds raised through the IPO are expected to play a crucial role in supporting the equity component of this expansion.
However, industry experts note that projects of this scale often face implementation risks, including potential delays, cost overruns, and challenges in maintaining projected timelines for revenue generation. The company’s ability to secure the remaining debt financing and ensure timely completion of the project will be closely monitored by investors and regulators alike.
Credit Rating Reflects High Risk Profile
In terms of creditworthiness, CARE Ratings Nepal Limited has assigned Doleshwor Village Resort and Farm House Limited (DVRL) an issuer rating of ‘CARE-NP B+ (Is)’. This rating indicates a relatively high risk of default in meeting financial obligations on time, highlighting the importance of careful financial planning and execution as the company moves forward with its expansion and IPO plans. Analysts suggest that the realization of expected benefits from the ongoing capital expenditure will be a key factor in improving the company’s financial standing and investor confidence in the long term.
Tourism Sector Outlook Remains Positive
Despite inherent risks, Doleshwor Village Resort and Farm House Limited (DVRL)’s expansion comes at a time when Nepal’s tourism sector is showing signs of strong recovery and long-term growth potential. The government has identified tourism as a key economic pillar, as reflected in the national budget for FY26, which introduced tax exemptions for hotels and resorts and allocated Rs 13.28 billion to the Ministry of Culture, Tourism and Civil Aviation.
Additionally, the government has declared the period from FY23 to FY33 as the “Tourism Decade,” aiming to position Nepal as a leading global travel destination. Tourist arrivals, which peaked at nearly 1.2 million in 2019, saw a sharp decline during the COVID-19 pandemic but have been steadily recovering since 2023 with the resumption of international travel.
Recent data indicates that tourist arrivals rebounded to 1.147 million and continued to grow year-on-year through 2025. Although short-term disruptions, such as protests and temporary airport closures in September 2025, caused a decline in arrivals during that period, the sector quickly bounced back, with a 3.25 percent increase recorded in October 2025 compared to the same month the previous year.
Hospitality Industry Faces Cyclical Challenges
The performance of Nepal’s hotel industry remains closely tied to broader tourism trends, including foreign tourist arrivals, disposable income levels, and demand for leisure, business travel, and MICE (meetings, incentives, conferences, and exhibitions). However, the sector is inherently cyclical and sensitive to external factors such as political instability, natural disasters, global economic conditions, and health crises.
Market dynamics, including supply-demand imbalances, also play a critical role. While rising tourist demand can boost occupancy rates and room prices, rapid expansion of hotel capacity in certain areas may lead to increased competition and pressure on profitability.
Company Background and Future Prospects
Established in 2016 under the Company Act, 2063, Doleshwor Village Resort and Farm House Limited transitioned into a public limited company on June 13, 2025, as part of its growth strategy. The Doleshwor Village Resort and Farm House Limited currently offers accommodation, conference facilities, and a nature-based hospitality experience, catering primarily to domestic and regional tourists.
With its IPO proposal now under review, DVRL is positioning itself to leverage capital market funding to scale up operations and enhance service offerings. If approved, the IPO could provide the financial backing needed to transform the resort into a more prominent player in Nepal’s evolving hospitality landscape.
The inclusion of Doleshwor Village Resort and Farm House Limited (DVRL)’s IPO proposal in SEBON’s pipeline signals growing confidence in Nepal’s tourism-driven hospitality sector. While risks related to project execution and financial stability remain, the company’s expansion aligns with broader national efforts to boost tourism infrastructure and attract more visitors. The success of this initiative will ultimately depend on effective implementation, market conditions, and the continued recovery of Nepal’s tourism industry.
