Dusit Princess Kathmandu, operated by Hotel Lhasa International Pvt. Ltd. in Lazimpat, recorded a turnover of Rs 40.20 crore during the first 11 months of the last fiscal year. The hotel’s revenue remained below its full-year 2025 turnover of Rs 43.70 crore, but was higher than the Rs 33.80 crore recorded in 2024, reflecting continued growth in business activity.
Five-Star Hotel Operating Since 2023
Established in 2013, Hotel Lhasa International operates the five-star Dusit Princess Kathmandu. The hotel occupies an area of 2,553 square meters and has 107 rooms. Although the company began commercial operations in 2023, it has yet to generate a net profit. Its financial performance continues to be affected by high interest and depreciation expenses.
In 2025, the company reported Rs 12.20 crore in EBITDA (earnings before interest, taxes, depreciation and amortization). Room services accounted for around 46 percent of its revenue, while food contributed approximately 38 percent. During the first 11 months of the last fiscal year, EBITDA stood at Rs 11.80 crore. However, the company remained in a net loss position due to interest and depreciation costs.
Debt Burden Remains Significant
The Dusit Princess Hotel continues to maintain a relatively high debt-heavy capital structure, although some leverage indicators have improved. Its overall gearing ratio stood at 3.91 times in 2025, before improving to 2.97 times during the first 11 months of the last fiscal year.
Similarly, the ratio of total external liabilities to tangible net worth increased from 3.99 times to 4.09 times in 2025, before standing at 3.09 times during the latest 11-month period. The company’s interest coverage ratio also improved from 0.62 times in 2025 to 0.83 times during the first 11 months of the last fiscal year, indicating a gradual improvement in its ability to service interest expenses.
Hotel Occupancy Stands at 52 Percent
The hotel recorded an overall occupancy rate of 52 percent during the last fiscal year, slightly lower than the 53 percent recorded in 2025. Despite the marginal decline in occupancy, the hotel continues to target both domestic and international guests through its five-star facilities and international brand affiliation.
Casino Expansion Planned for 2027
Dusit Princess Kathmandu is currently expanding its facilities to include a casino. The company plans to bring the casino into commercial operation from the beginning of 2027. The casino is expected to provide an additional revenue stream for the hotel while strengthening its positioning in Kathmandu’s premium hospitality and entertainment market.
Managed by Dusit Overseas
The hotel is operated under the Dusit Princess brand and will be managed by Dusit Overseas, an international hospitality company. Dusit International has more than 77 years of experience in the hospitality sector and manages hotels, resorts and luxury villas across 18 countries. The group operates around 290 properties, comprising approximately 11,800 rooms across nine brands. The international management arrangement gives Dusit Princess Kathmandu access to established hospitality standards, management expertise and the global reach of the Dusit brand.
Company Secures BB Rating for Long-Term Debt
The company, in which Dorje Gyalzen Lama holds a 49 percent ownership stake, has obtained credit ratings for total long- and short-term borrowings amounting to Rs 2.0241 billion. Of this, the company has received a BB rating for long-term borrowing of Rs 2.019 billion, while its Rs 5.1 million short-term borrowing has received an A4 rating. The ratings reflect the company’s financial position, debt obligations and operating performance as it continues to expand its hospitality business and prepare for the planned casino operation.
