Hotel Forest Inn Limited has officially opened the issuance of its Initial Public Offering (IPO) for Nepalese citizens working abroad from today, 4th Magh 2082. The company has allocated 4,00,000 units of ordinary shares exclusively for Nepalis employed overseas under the reserved quota. The offering marks an important opportunity for migrant workers to invest in Nepal’s growing hospitality sector.
The IPO for Nepalese citizens working abroad will remain open until 8th Magh 2082. However, if the issue is undersubscribed within the initial period, the closing date may be extended up to 18th Magh 2082, according to the company. Applications can be submitted through the designated channels approved by the regulatory authorities.
Share Structure and Public Allocation
Hotel Forest Inn Limited has an issued capital of Rs. 2 Arba. Out of this total issued capital, 20 percent, equivalent to 40 lakh unit shares, is being offered to the general public. From this public issue portion, 10 percent has been reserved for Nepalese citizens working abroad, amounting to 4,00,000 units of shares, which are now open for subscription.
For eligible migrant workers, the minimum application size has been set at 10 units, while the maximum application limit is 2,00,000 units. This flexible range allows both small and large investors to participate according to their financial capacity.
Issue Management and Credit Rating
NIC Asia Capital Limited has been appointed as the issue manager for the public offering. The capital company will oversee the IPO process, including application management, share allotment, and coordination with regulatory bodies.
Meanwhile, CARE Ratings Nepal Limited (CRNL) has assigned a ‘CARE-NP BB-’ rating to the long-term bank facilities of Hotel Forest Inn Private Limited. This rating indicates a moderate level of credit risk, reflecting the company’s financial position and project status at the time of assessment.
Company Background and Incorporation
Hotel Forest Inn Private Limited was incorporated on November 22, 2010, to develop a premium hotel property in Kathmandu. Over the years, the company has focused on establishing a large-scale hospitality project aimed at both domestic and international travelers.
The hotel is being developed in Budhanilkantha, Kathmandu, one of the city’s emerging hospitality and tourism destinations. The property spans 1,42,783 square feet of land, reflecting the scale and ambition of the project.
Five-Star Hotel Project in Budhanilkantha
The upcoming hotel will feature a total of 102 room keys and is proposed to be categorized as a five-star hotel property. Designed to meet international hospitality standards, the project aims to strengthen Nepal’s high-end accommodation capacity, especially in the Kathmandu Valley.
According to the company, the hotel is expected to commence operations in October 2023, following the completion of construction and necessary operational preparations. Once operational, the hotel is anticipated to contribute to employment generation, tourism promotion, and overall economic activity in the region.
Partnership with an International Hotel Brand
In a significant development, Hotel Forest Inn Private Limited has entered into a License Agreement with InterContinental Hotels Group (IHG). Under this agreement, the hotel will operate under the internationally recognized ‘Holiday Inn’ brand.
Holiday Inn is an American-based mid-scale hotel chain with a strong global presence and reputation for standardized service quality. The association with IHG is expected to enhance the hotel’s brand value, operational efficiency, and global visibility, attracting both business and leisure travelers to Nepal.
Boost to Hospitality Investment
The opening of the IPO for Nepalese citizens working abroad reflects a broader trend of encouraging diaspora investment in national development projects. With Nepal’s tourism and hospitality sector gradually expanding, investments in branded hotel properties are seen as a long-term growth opportunity.
Hotel Forest Inn’s IPO is expected to attract strong interest from migrant workers seeking stable investment avenues in their home country, while also supporting the development of internationally branded hospitality infrastructure in Nepal.
