The construction of Lumbini Marriott Resort and Spa, being developed by Lumbini Palace Resort Limited along the Lumbini tourism corridor, has reached 45% physical progress, while the project has achieved 35% financial progress. The company has estimated the total investment for the project at Rs 10.997 billion. The resort is being developed as a major luxury hospitality project near Lumbini, the birthplace of Lord Buddha, with a focus on tourism, wellness, entertainment, sports and international events.
First Marriott International Property Outside Kathmandu Valley
Lumbini Palace Resort Limited has been operating profitably for the past four years and is upgrading its services through a partnership with the globally renowned hotel chain Marriott International. The resort is being developed under the brand Lumbini Marriott Resort & Spa and will operate as a five-star hotel. It will be the first and only presence of Marriott International outside the Kathmandu Valley, marking a significant expansion of international hotel brands into Nepal’s regional tourism destinations.
The company has already signed a hotel management agreement with Marriott International through its global hospitality licensing arrangement. The resort has been backed by former banker Roshan Kumar Neupane, former CEO of NIC Asia Bank, and former Association of Chartered Accountants of Nepal (ACAN) President Dipak Pandey.
Commercial Operations to Begin with 200 Beds
The company plans to begin commercial operations in 2027 with an initial capacity of 200 beds. The resort is expected to reach its full capacity of 450 beds by 2030. The company has noted that hotel businesses generally require significant fixed investment during the initial phase. As a result, recovering initial costs and achieving sustained profitability can take time. The company also expects continued pressure on pricing power and profitability due to intense competition in the hospitality market.
Existing Resort Records Rising Turnover
The existing resort operated by Lumbini Palace Resort Limited has recorded steady growth in turnover in recent years. During the first 10 months of the last fiscal year, the company recorded turnover of Rs 145 million. Its turnover stood at Rs 141 million in 2025, Rs 119 million in 2024, Rs 101 million in 2023 and Rs 72 million in 2022.
The company has reported an average annual turnover growth of 22% between 2022 and 2025. In 2025, operating profit accounted for 44% of total turnover, with revenue generated mainly from the banquet and accommodation segments. The company’s net profit accounted for 11% of total turnover in 2025, while its total cash balance stood at Rs 26 million during the year. The company also reported a 44% profit margin during the first 10 months of the last fiscal year.
Capital Structure Shows Improvement
The company’s financial indicators have also improved in recent years. Its overall gearing ratio stood at 1.28 times in 2025, which improved to 0.25 times during the first 10 months of the last fiscal year. The company attributed the improvement to equity investment and advance share capital. Similarly, the ratio of total external liabilities to tangible net worth improved from 1.35 times to 0.30 times.
The company’s interest coverage ratio stood at 1.74 times in 2025 and 1.61 times during the first 10 months of the last fiscal year. Its debt service coverage ratio stood at 1.30 times in 2025, reflecting an improvement in its financial position. The company, which was registered in 2018, was converted into a public company at the end of 2025.
Rs 5.49 Billion Debt Rating Obtained
Teras Inc. holds a 12.15% stake in the company. The company, chaired by Dipak Pandey, has obtained ratings for long-term and short-term loans totalling Rs 5.4969 billion. This includes a rating for Rs 5.2929 billion in long-term loans and Rs 203.9 million in short-term loans. The company has also stated that it is making the necessary preparations to issue Initial Public Offering (IPO) shares to the general public.
Nepal’s First Water Resort
The resort is being developed as Nepal’s first and only dedicated water resort, introducing a new concept to the country’s tourism and hospitality industry. The project will feature a range of modern and futuristic water-based attractions, including advanced water fountains, water shows, musical fountains, 3D water screens, motor boating, mini cruises, water restaurants and water spas. The combination of luxury accommodation, water-based entertainment and wellness facilities is expected to create a new tourism product in Nepal and attract both domestic and international visitors.
Focus on Green and Sustainable Hospitality
The resort is also being developed with a strong focus on environmental sustainability and wellness tourism. Considering global challenges such as climate change, global warming and ecological imbalance, the company aims to develop the resort as a wellness retreat and eco-resort with Nepal’s first Green Certification (Gold). The company has stated that the project will follow standards related to environmental protection, energy efficiency, sustainable development and low pollution. It also plans to promote natural health and naturopathy by developing Nepal’s first and only organic five-star wellness luxury resort with organic certification.
Sports Tourism to Receive a Major Boost
The resort is also planned as a multi-speciality resort with international-standard infrastructure for major sports played in Nepal. The company believes the development will provide significant support to Nepal’s growing sports tourism sector by offering facilities suitable for sports events, training programmes and other international-level activities.
Buddhist Heritage and Cultural Experiences
Located near Lumbini, the birthplace of Lord Buddha and a global pilgrimage destination, the resort will incorporate a range of Buddhist and cultural attractions. The planned facilities include a Buddha Theme Park, mini stupas, a mini Buddha Museum, meditation zones and cultural centres. The integration of luxury hospitality with Buddhist heritage, meditation and cultural experiences is expected to strengthen the resort’s appeal among wellness travellers, spiritual tourists and international visitors seeking cultural experiences.
Targeting International Events and Destination Weddings
The resort also aims to establish itself as a leading destination in Nepal for international conferences, meetings, weddings and private events. With its planned combination of luxury accommodation, convention facilities, water attractions, wellness services, sports infrastructure and cultural experiences, the project is expected to create a comprehensive tourism destination in the Lumbini region. Once completed, Lumbini Marriott Resort & Spa is expected to become a major addition to Nepal’s luxury hospitality sector and strengthen the Lumbini tourism corridor as a destination for religious tourism, wellness, leisure, business events and premium international travel.
