Infomerics Credit Rating Nepal Limited has downgraded the credit ratings of Bodhi Resort Private Limited, citing continued delays in debt servicing and rising project-related financial risks. The rating agency lowered the company’s long-term and short-term bank facility ratings from IRN BB-/A4 to IRN D, covering total banking facilities worth NPR 645.05 million.
According to the June 2026 rating action, the downgrade reflects the company’s failure to service debt obligations within the repayment period outlined under Infomerics Nepal’s Default Recognition Policy. The agency noted that delayed debt repayment has become the primary factor affecting the company’s credit profile.
Delayed Construction and Funding Pressure Raise Project Risks
Infomerics Nepal also highlighted growing implementation and operational stabilization risks surrounding the company’s under-construction hospitality project operating under the brand name Bodhi Resort Nepal.
Construction of the resort began in February 2022 with an initial estimated project cost of NPR 636 million. However, due to structural design changes and project revisions, the total project cost later increased significantly to approximately NPR 885 million, creating additional financial pressure on the company.
The resort is currently expected to begin commercial operations from fiscal year 2027, but rating analysts warned that delays in project completion, coupled with funding challenges for the remaining construction work, continue to create uncertainty around project execution.
Highly Leveraged Financial Structure Adds Further Pressure
The report noted that Bodhi Resort’s financial structure remains highly leveraged, with the project largely financed through debt. The company currently maintains an estimated 72:28 debt-to-equity ratio, making future repayment obligations more challenging during the initial operational years.
As hospitality projects generally require longer gestation periods before generating sustainable profits, analysts warned that revenue generation may remain modest in the early years even after operations begin. The Bodhi Resort Nepal’s ability to secure additional funding, complete construction on time, attract sufficient guest demand, and stabilize operations will remain critical factors influencing future financial performance.
Prime Tourism Location at Namobuddha Remains Key Strength
Despite the downgrade, Infomerics Nepal acknowledged the project’s strong location advantage as an important positive factor. The resort is being developed in Namobuddha, approximately 40 kilometers southeast of Kathmandu, one of Nepal’s growing spiritual and tourism destinations.
Namobuddha is widely known for its Buddhist heritage, scenic hilltop monasteries, sunrise and sunset viewpoints, and the famous Sacrifice to the Tigress religious site that attracts both domestic and international visitors. The destination also offers panoramic views of eight of Nepal’s thirteen Himalayan mountain ranges and remains easily accessible from nearby tourism destinations such as Dhulikhel, Panauti, Balthali, and Dapcha.
Experienced Promoters Continue to Support the Project
The company operates under the leadership of Chairman Kalsang Paljor Sherpa, who brings prior experience from Nepal’s hospitality and tourism sector. Infomerics Nepal stated that the company benefits from an experienced four-member Board of Directors with expertise across multiple business sectors, providing some management stability despite the company’s current financial challenges.
Competition and Operational Stability Remain Future Challenges
The rating report also highlighted intense competition within Nepal’s hospitality industry as another major concern. Since Bodhi Resort will operate as a single-property resort, its business remains exposed to geographic concentration risk with limited diversification opportunities.
Nepal’s hotel industry continues to remain highly fragmented, with numerous established hotels and resorts competing for both domestic and international tourists. Analysts noted that Bodhi Resort’s future success will depend heavily on its ability to establish brand recognition, maintain occupancy levels, and compete effectively once operations begin.
Established in October 2018, Bodhi Resort Private Limited is developing a 15-key luxury resort project consisting of ten deluxe villas, one presidential villa, and one artist villa. Going forward, Infomerics Nepal stated that timely debt repayment, successful project completion within the estimated cost, and smooth operational launch will remain the key factors determining future rating movements.
