Hotel Sabrina Limited (SABRINA), one of Kathmandu’s prominent tourist-standard hospitality establishments, has formally entered the initial public offering (IPO) pipeline of the Securities Board of Nepal (SEBON). The company’s application, submitted on Mangsir 16, 2082, seeks regulatory approval to issue shares to the general public in what will be a significant milestone for the relatively young hotel brand.
IPO Proposal Submitted to SEBON
Hotel Sabrina Limited has proposed issuing 4,704,000 ordinary shares at a par value of Rs. 100 per share, amounting to a total potential raise of Rs. 47.04 crore. This capital infusion is anticipated to support the company’s operational and financial objectives as it continues to strengthen its presence in Nepal’s hospitality sector.
NIC Asia Capital has been appointed as the issue manager for the IPO, taking responsibility for overseeing the public offering process once the proposal secures SEBON’s approval. The submission of this proposal marks the first step toward public participation in the company’s equity structure. However, Hotel Sabrina can proceed with issuing shares to the general public only after SEBON grants the required authorization.
ICRA Nepal Downgrades Credit Rating
In a parallel development, ICRA Nepal has downgraded the issuer rating of Hotel Sabrina Limited from [ICRANP-IR] B+ to [ICRANP-IR] B, reflecting heightened concerns about the company’s financial risk. According to the rating agency, entities with a B rating are considered to have a high risk of default in meeting timely financial obligations. It is important to note that the issuer rating expresses an opinion on the general creditworthiness of the company and does not evaluate specific debt instruments.
In addition to the issuer rating, ICRA Nepal has also assigned:
- A long-term loan rating of [ICRANP] LB, indicating vulnerability to default risk, and
- A short-term loan rating of [ICRANP] A4, suggesting risk associated with short-term credit exposures.
These ratings provide potential investors with insight into the company’s current financial standing, an important factor as it seeks to enter the capital market.
A Rising Hotel with Early Recognition
Despite the recent rating downgrade, Hotel Sabrina has earned considerable recognition in Nepal’s hospitality space. In 2021, it was awarded the title of “Best Hotel in Nepal” by the Hotel Critics and Bloggers Association in collaboration with Hotel.com.
The hotel is located in Ganesh Chowk, Budhanilkantha-06, Kathmandu, an area known for its serene surroundings and proximity to popular religious and natural attractions. Positioned approximately 9 kilometers from Tribhuvan International Airport, the hotel enjoys access to both urban and suburban clientele.
Hotel Sabrina operates under the “Regenta Place” brand, a part of the prestigious Royal Orchid Hotels, which manages more than 100 hotels across over 48 locations. Notably, Hotel Sabrina is the first hotel in Nepal to be managed under the Regenta Place brand, marking a significant milestone in the expansion of this international hospitality name into the Nepali market.
Business Overview and Operational Profile
Incorporated in August 2018 and operational since June 2019, Hotel Sabrina Limited manages a single-property tourist-standard hotel. The establishment currently offers:
- 60 keys, including 12 service apartment units,
- Three banquet halls, catering to events, conferences, and social gatherings.
This infrastructure positions the hotel as a full-service hospitality provider capable of hosting both leisure and business travelers. The leadership of the company is spearheaded by Mr. Nirajan Thapa, who chairs the board of directors and holds approximately 49% ownership as of July 8, 2025. His significant stake underscores strong promoter involvement and long-term commitment to the hotel’s growth and strategic direction.
Awaiting SEBON Approval
As Hotel Sabrina awaits SEBON’s decision on its IPO proposal, the company stands at an important juncture. The approval would pave the way for public investment, expansion opportunities, and improved financial flexibility. However, challenges highlighted by the recent credit rating downgrade may be key considerations for potential investors. The coming months will determine how Hotel Sabrina positions itself in Nepal’s competitive hospitality landscape as it prepares for a broader corporate transition through public listing.
