Bharleli Hospitality Private Limited (BHPL) is developing a 118-room five-star hotel in Simara, Bara, with an estimated project cost of Rs 3.345 billion. The company, incorporated on November 28, 2018, under the Companies Act, 2006, is developing the property on approximately 220,158 square feet of land.
The proposed hotel will feature 118 rooms along with a restaurant and bar, boardroom, gymnasium, casino boardroom, banquet facilities and conference halls. The project is being positioned to cater to business and leisure travelers, corporate clients, institutions, Indian and other foreign visitors, as well as domestic customers.
Project Financing and Construction Progress of Bharleli Hospitality
According to a September 2026 press release by CARE Ratings Nepal Limited (CRNL), the total project cost is estimated at Rs 3.345 billion. The project is planned to be financed through Rs 2.509 billion in debt and Rs 836 million in equity, resulting in a debt-equity ratio of 75:25.
The project is currently in the initial stage of construction. Bharleli Hospitality Private Limited (BHPL) has already acquired the required land and completed the Environmental Impact Assessment (EIA). As of mid-September 2026, the financial progress of the project stood at around 13%. Of the planned equity contribution of Rs 836 million, around 19% had been infused as of the assessment period. Meanwhile, the company is still in the process of tying up the full debt requirement, with Rs 300 million already sanctioned by a bank.
CARE Assigns ‘CARE-NP BB-’ Rating
CARE Ratings Nepal has assigned a ‘CARE-NP BB-’ rating to the long-term bank facilities of Bharleli Hospitality Private Limited (BHPL) amounting to Rs 2.55 billion. The rated facilities comprise a Rs 300 million term loan and Rs 2.25 billion in proposed long-term bank facilities. The assessment reflects the risks associated with the early-stage implementation of the hotel project and the subsequent period required for operations to stabilize.
The rating agency has also considered the partial debt tie-up, the cyclical nature of the hospitality industry, revenue concentration arising from a single property, and competition in the sector. At the same time, the project benefits from the experience of its promoters, its strategic location in Simara, and continued government support for Nepal’s tourism and hospitality sector.
Debt Tie-Up Remains Important for Bharleli Hospitality Project Completion
With the project Bharleli Hospitality Private Limited (BHPL) still at an early stage, timely completion within the planned cost and schedule remains an important consideration. CARE Ratings has noted that the remaining debt requirement needs to be tied up to ensure smooth and uninterrupted execution of the project. Any delays in arranging the remaining financing could affect the pace of construction. The Bharleli Hospitality Private Limited (BHPL) will also need to manage the project’s substantial investment requirement during the construction period before the hotel begins generating operating revenue.
Long Gestation Period Expected in Hotel Operations
The proposed five-star property is expected to require a relatively long period to achieve operational stability after completion. According to CARE Ratings, premium hotel projects generally have a construction period of around three to four years, while stabilization of operations can take an additional two to three years. The significant fixed investment associated with premium hotels also means that achieving adequate occupancy, establishing the property’s market position and generating sufficient revenue will be important after commencement of operations. The company’s ability to attract customers, maintain occupancy levels and establish the hotel as a competitive hospitality property will therefore be important for its future financial performance.
Strategic Location Near Simara Airport
The proposed Bharleli Hospitality Private Limited (BHPL) is located in Simara, Bara, around five kilometres from Simara Airport. CARE Ratings has identified the location as a key strength of the project due to Simara’s position as a commercial and industrial area. The property is located near industrial establishments, business centers and transportation networks. This is expected to provide access to business travelers as well as leisure customers.
The Bharleli Hospitality Private Limited (BHPL) plans to serve a diversified customer base comprising Indian and other international visitors, business travelers, corporate houses, institutions and domestic tourists. Its planned facilities are also expected to support meetings, conferences, seminars, social functions, dining and accommodation requirements.
Experienced Promoters Behind the Project
Bharleli Hospitality Private Limited (BHPL) is promoted by entrepreneurs with experience across different business sectors. Chairman Ankush Shrestha has experience in various businesses and is also associated with Nepovit Ceramic Private Limited as a director. Another promoter, Anish Shrestha, has diversified entrepreneurial experience. The Bharleli Hospitality Private Limited (BHPL)’s board is supported by an experienced team across different functional and departmental areas, according to CARE Ratings.
Hospitality Sector Remains Exposed to Market Cycles
Nepal’s hotel industry remains exposed to fluctuations in tourism demand and broader economic conditions. Changes in international tourist arrivals, domestic spending, air connectivity and business activity can directly influence hotel occupancy and revenues.
The proposed property will also face geographic concentration risk as its operations and revenues will be generated primarily from a single hotel in Bara. Intense competition among hotels and other hospitality establishments could further affect occupancy and pricing. The sector is also vulnerable to external factors such as geopolitical conflicts, natural disasters, disease outbreaks, political instability and other unforeseen disruptions.
Floating Interest Rates Add Financial Risk
Bharleli Hospitality Private Limited (BHPL)’s proposed borrowing is subject to floating interest rates, with the applicable rate linked to the monthly base rates of banks and financial institutions. Changes in liquidity conditions in Nepal’s financial system can result in fluctuations in base rates. A significant increase in borrowing costs could therefore raise the company’s interest burden and put additional pressure on liquidity during both the construction and operational phases.
Tourism Recovery Supports Hospitality Investment
Nepal’s tourism sector has continued to recover following the severe disruption caused by the COVID-19 pandemic. International arrivals, which reached around 1.20 million in 2019, declined sharply during 2020 and 2021 before recovering in subsequent years. According to CARE Ratings, Nepal received around 1.16 million international visitors in 2025, bringing arrivals closer to the pre-pandemic level. During the first seven months of 2026, tourist arrivals increased 6.8% year-on-year to 692,228.
The hospitality sector, however, faced temporary disruption in September 2025 following nationwide protests and civil unrest, which affected transportation, airport operations and hotel bookings. Despite such disruptions, CARE Ratings said continued growth in tourism, improving connectivity and government support are expected to provide a supportive medium-term environment for the hospitality industry.
Government Support for Tourism Sector
Tourism remains an important component of Nepal’s economy, with the government providing various forms of policy support to the hospitality industry. These include tax-related incentives for hotels and resorts and the classification of tourism and hospitality as a priority area for lending by banks and financial institutions.
The government has also designated fiscal years 2022/23 to 2032/33 as the Tourism Decade, with the objective of strengthening Nepal’s position as an international tourism destination. For Bharleli Hospitality Private Limited (BHPL), the combination of Simara’s commercial and industrial base, proximity to the airport, and growing tourism activity could provide an accommodation market, business events, conferences, dining, and other hospitality services once the project becomes operational.
