Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari in Sunsari, is showing strong improvement in business performance as the property continues to establish itself in eastern Nepal’s growing hospitality market. The hotel’s total operating income has surged since it began commercial operations, while profitability and its financial structure have also improved.
According to a September 2026 assessment by Infomerics Credit Rating Nepal Limited, Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari, recorded a compound annual growth rate (CAGR) of about 104 percent between FY2023 and FY2026, reaching approximately NPR 207 million in FY2026. The Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari’s association with the established Soaltee brand, strategic location in Itahari, and expanding business operations emerge as key factors supporting its growth prospects.
Soaltee Brand Gives Itahari Hotel a Strong Hospitality Platform
Soaltee Westend Itahari operates under a franchise model with Soaltee Hotels and Resorts, a hospitality group with around six decades of experience in Nepal. The Soaltee network includes established properties such as The Soaltee Kathmandu, Soaltee Westend Nagarkot and Soaltee Westend Premier Nepalgunj. The association provides Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari, with access to an established hospitality brand and is expected to support its efforts to attract business, leisure and other travelers. Infomerics has identified the Soaltee association as one of the key strengths behind the hotel’s growth and future occupancy prospects.
Soaltee Westend Itahari is spread across around 6,091 square meters and has 77 rooms. The Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari began partial commercial operations in April 2023, followed by full-fledged commercial operations from FY2024. Its location further strengthens its market potential.
The hotel is around 25 kilometers north of Biratnagar, 16 kilometers south of Dharan and 92 kilometers west of Kakarbhitta, placing it within reach of several major commercial centers and travel corridors in eastern Nepal. Located along the Mahendra Highway and Koshi Highway, and around 22 kilometers from Biratnagar Airport, the hotel can serve business, leisure and transit travelers moving through the region. Its five banquet halls also allow it to cater to conferences, corporate events and social functions, helping diversify its revenue sources beyond room sales.
Garima Hotel Revenue Jumps to NPR 207 Million
Garima Hotel Limited (GHL), operator of the five-star Soaltee Westend Itahari has recorded a sharp increase in operating scale since entering the market. Its total operating income increased from around NPR 3 million in FY2022 to NPR 207 million in FY2026, reflecting a CAGR of approximately 104 percent during FY2023-FY2026. Operating profitability has strengthened alongside revenue growth. EBITDA increased from around NPR 1 million in FY2024 to NPR 23 million in FY2025 and NPR 82 million in FY2026. The company also recorded positive profit before tax and profit after tax in FY2026, marking an improvement from losses in its earlier operating years.
Food and beverage operations were the largest contributor to FY2026 revenue, accounting for approximately 47 percent of total revenue, while room revenue contributed around 24 percent. This highlights the importance of the hotel’s restaurant, event and hospitality operations alongside its accommodation business. The hotel’s average occupancy increased from around 24 percent in FY2025 to 31 percent in FY2026. While occupancy remains relatively modest as the property is still in the early stages of its operating lifecycle, the improvement indicates gradual progress as the hotel expands its market presence.
Stronger Financial Structure Supports Hotel Growth
Alongside the improvement in operating performance, Garima Hotel has significantly strengthened its capital structure. Its overall gearing ratio declined to 0.57 times in FY2026 from 1.70 times in FY2025, while its total outside liabilities to tangible net worth ratio fell from 1.90 times to 0.65 times during the same period. Debt servicing indicators also improved. The company’s debt service coverage ratio (DSCR) turned positive at 1.05 times in FY2026, while its interest coverage ratio improved to 2.13 times from 1.80 times in FY2025. The changes reflect the improvement in operating profitability and reduction in financial leverage.
Infomerics Nepal has assigned Garima Hotel an IRN BB (Issuer) rating. Its long-term bank facilities of NPR 771.69 million have been assigned an IRN BB rating, while short-term bank facilities of NPR 20 million have received an IRN A4 rating, bringing the total rated facilities to NPR 791.69 million.
Itahari Location Opens Wider Tourism and Business Opportunities
The strategic position of Soaltee Westend Itahari gives the property an opportunity to tap into several segments of eastern Nepal’s travel and hospitality market. Its connectivity with Biratnagar, Dharan and Kakarbhitta, combined with access to two major highway corridors and proximity to Biratnagar Airport, supports its potential to serve corporate, leisure and transit travelers.
The hotel’s event infrastructure also creates opportunities to capture demand from meetings, conferences and social functions. With five banquet halls, the property can serve both corporate and social events, potentially supporting occupancy and non-room revenue as its operations mature. However, the hotel still faces challenges associated with its relatively short operating history and the competitive nature of Nepal’s hospitality industry. Its working capital intensity increased to around 174 percent in FY2026 from 120 percent in FY2025, while the average collection period increased from 38 days to 73 days.
Inventory holding also increased to 122 days from 94 days. The longer collection period is partly linked to the company’s focus on corporate and event clients, which generally receive credit periods of 60 to 120 days. Efficient management of receivables, inventory and supplier credit will therefore remain important as the hotel continues to scale its operations.
Garima Hotel also has a proposed IPO, with the timely completion of the issuance identified by Infomerics as one of the factors that could influence the company’s future financial position. Going forward, improving occupancy, maintaining profitability, stabilizing operations and managing working capital will be important as Soaltee Westend Itahari strengthens its presence in eastern Nepal’s hospitality and tourism market.
