Hotel Himalton Private Limited (HHPL) is set to open a 142-room five-star hotel in Banasthali, Kathmandu, as the company has received a CARE-NP BB-rating for long term bank facilities of Rs 1.5 billion from CARE Ratings Nepal Limited. The company was incorporated on March 22, 2021, and is set to develop the hotel with an estimated project cost of Rs 3.01 billion. The proposed hotel includes restaturants, swimming pools, gym and health clubs, spa, wedding and banquet halls. The investment comes as Nepal’s tourism and hospitality sector witnesses increased private sector investment and growing tourist traffic.
CARE Ratings Assigns BB- Credit Rating To Hotel Himalton
CARE Ratings Nepal Limited has assigned a CARE-NP BB-rating to the long-term bank facilities of Hotel Himalton covering facilities of Rs 1.5 billion. The credit rating agency stated that the rating is constrained by the implementation risks of the company’s under-construction five-star hotel and its stabilization period after opening. Other factors considered for the credit rating decision included partial debt linkage, industry specific cyclicity, revenue concentration, competitive landscape, and exposure to interest rates. CARE Ratings identified the company’s ability to construct the proposed hotel within the estimated cost and timeframe and stabilize its operations after opening as critical success factors to its financial performance.
According to the report published on May 8, 2026, the promoters of Hotel Himalton Private Limited (HHPL) have been contributing to the company’s equity capital, with Rs 318 million in promoter’s equity as of May 8, 2026. The project completion is expected to achieve about 20 percent financial completion against the total estimated project cost. The financing structure of the project is expected to maintain a 1:1 debt to equity ratio, with the debt portion of the funding remaining partially tied as of the date of the report.
142 Room Hotel To Provide Tourism And Hospitality Services
The proposed 142-room hotel is expected to provide premium hospitality services and tourism-related facilities. The Hotel Himalton Private Limited (HHPL) is anticipated to have various food and beverage outlets, swimming pools, conference and banquet halls, health and fitness centers, a gym, spa, and wedding venues. The range of services is expected to position the hotel to meet the diverse hospitality needs of leisure, business, conference, and wedding travelers.
CARE Ratings Nepal observed that premium hotel projects typically have a long gestation period, with the construction of such projects taking three to four years and an additional two to three years before stabilization. The rating agency stated that the company’s ability to achieve stabilization after opening would depend on its ability to generate demand and achieve target occupancy while establishing its brand presence in the premium hospitality segment.
Since the company has chosen to focus on the premium hotel segment, it will require significant capital investment to finance the project, with long payback periods for fixed costs compared to mid-scale and budget hotel projects. The hotel will enter a competitive market landscape with numerous organized and unorganized players in Nepal. CARE Ratings Nepal noted that the hotel industry in Nepal is highly dependent on domestic and international macroeconomic conditions, as the occupancy and revenue of the hotel sector are cyclical in nature. Hotel Himalton Private Limited (HHPL)’s reliance on one asset to generate revenue and profits exposes the company to heightened market risk.
Proposed Hotel In Banasthali Is Close To Kathmandu Airport
The proposed Hotel Himalton is in Banasthali, Kathmandu, with an approximate distance of 8.6 kilometers from Tribhuvan International Airport. According to CARE Ratings Nepal, the location of the hotel is a significant advantage over other areas in Nepal, as Kathmandu is the entry point for international tourists visiting Nepal. The capital city is also one of the primary tourist destinations in Nepal with well-developed tourism and hospitality infrastructure.
According to the report, Kathmanda has seven UNESCO World Heritage Sites, including its famous Durbar Squares, and is home to numerous temples and unique cultures. The city has well-developed tourism infrastructure for international visitors, including the capital city’s appeal as a hub for cultural, leisure, and business tourism. The hotel is also within a short driving distance of Nagarkot, a famous Himalayan destination.
With the strategic location advantage of the proposed hotel in Kathmandu, Hotel Himalton has the potential to capture the international tourist market that flies into Tribhuvan International Airport as well as the domestic and business tourist market. According to CARE Ratings Nepal, the hotel has the potential to benefit from the tourism appeal, infrastructure, and accessibility of Kathmandu. However, the company will enter a competitive market and will have to differentiate itself from other existing and emerging hotel and hospitality businesses in Kathmandu.
Hotel Himalton Has Experienced Individual And Institutional Promoters
Hotel Himalton has individual and institutional promoters with extensive experience in the tourism, hospitality, and related sectors. Tourism Investment Fund Limited, the largest institutional promoter, owns 57 percent of the company. The company’s promoter, Ramesh Prasad Dhamala, has been in the business for more than ten years and has experience in the hospitality, tourism, and business sectors. Dhamala is also the former president of the Trekking Agencies’ Association of Nepal (TAAN). Apart from being the chairman of HHPL, Dhamala is the chairman of Ecological Treks Private Limited and Ecological Tours & Travels Private Limited.
The company’s other promoter is Rakesh Dhamala, who is a director at Hotel Himalton Private Limited (HHPL) and has been in the hospitality and tourism business. He is the chairman of the Banasthali Family Mart Private Limited and the managing director of Ecological Treks and Ecological Tours & Travels. Shiva Prasad Sharma is the managing director of Hotel Himalton Private Limited (HHPL) and has experience in accountancy, taxation, and other related fields. Sharma has also been involved in various cooperative and investment businesses, as well as other tourism-related ventures.
CARE Ratings Nepal has identified the promoters’ expertise in related fields as one of the strengths of HHPL, as the company moves to develop the proposed hotel. The rating agency acknowledged the combined institutional and individual expertise of the company’s promoters in the fields of tourism, hospitality, and business as advantageous to the company as it develops the premium hotel. Nonetheless, the rating agency has observed that successful project implementation and stable operations after opening are critical to the financial performance of the company.
Government’s Emphasis On Tourism Industry Benefits Hospitality Sector
CARE Ratings Nepal has identified the government’s emphasis on tourism as an advantage to the hospitality sector in Nepal. The FY 2026/27 budget has demonstrated the government’s commitment to the tourism sector through allocations to heritage, tourism, trekking, and aviation sectors.
The government has allocated approximately Rs 7.34 billion to culture and tourism and around Rs 2.93 billion to civil aviation. Priority areas for the FY 2026/27 budget include the promotion and development of the Greater Lumbini Region, Janakpur as a wedding destination, the Great Himalayan Trail, and regional tourism corridors, as well as the conservation of cultural heritage and the enhancement of airport infrastructure. The budget has also allocated funds to upgrade Tribhuvan International Airport, Pokhara International Airport, and Gautam Buddha International Airport.
CARE Ratings Nepal noted that the government’s focus on tourism will benefit the hospitality industry, as increased government spending on infrastructure and the rising number of tourists in Nepal create favorable conditions for increased demand for hotel rooms. Nonetheless, Hotel Himalton will face implementation, stabilization, competitive, cyclicity, and interest-rate risks identified by CARE Ratings Nepal. Consequently, the company’s ability to complete the Rs 3.01 billion project on time and within budget while achieving stabilized operations after opening will be critical to its success.
