Hotel Siraichuli Limited has submitted a proposal to issue 15 lakh ordinary shares at a face value of Rs. 100 per share, with the proposed Initial Public Offering (IPO) expected to raise Rs. 15 crore. The IPO proposal has been added to the pipeline of the Securities Board of Nepal (SEBON). The company will be able to issue the shares to local and general investors only after receiving approval from the securities market regulator.
Nabil Investment Banking Appointed Issue Manager
Nabil Investment Banking Limited has been appointed as the issue manager for the proposed IPO. The investment banking firm will oversee the issue and related procedures once the proposal receives regulatory approval. The proposed IPO is part of Hotel Siraichuli’s plan to raise capital from the public as it operates its four-star hospitality property in Bharatpur, Chitwan.
Hotel Siraichuli Operates 71-Room Four-Star Hotel
Hotel Siraichuli Limited was initially incorporated as a private limited company on February 13, 2017, under the Companies Act, 2063. The company was later converted into a public limited company on July 14, 2024. The company was established with the objective of operating a four-star hotel in Bharatpur, Chitwan. Hotel Siraichuli currently operates with a 71-room capacity, catering to both domestic and international visitors.
CARE Ratings Assigns ‘CARE-NP BB+ (Is)’ Rating
CARE Ratings Nepal Limited (CRNL) has assigned Hotel Siraichuli a ‘CARE-NP BB+ (Is)’ issuer rating. According to CARE Ratings, an issuer with this rating is considered to have a moderate risk of default in meeting its financial obligations on time.
Tourism Recovery Supports Hospitality Sector
The proposed IPO comes amid the gradual recovery of Nepal’s tourism and hospitality sector. Tourism remains a key pillar of the Nepalese economy, with the government continuing to prioritize the sector through policy and budgetary measures. The FY2026 Budget introduced tax exemptions for hotels and resorts and allocated Rs. 13.28 billion to the Ministry of Culture, Tourism and Civil Aviation. The government has also declared FY2023–FY2033 as the “Tourism Decade” with the objective of positioning Nepal as a leading global tourism destination.
Nepal recorded its highest tourist arrivals before the COVID-19 pandemic, with around 11.97 lakh international visitors in 2019. Tourist arrivals declined sharply during the pandemic following lockdowns and travel restrictions. The sector began recovering from 2023 following the resumption of international flights and reopening of economies. Tourist arrivals subsequently continued to improve, reaching 11.58 lakh in 2025, up marginally from around 11.48 lakh in 2024.
Hospitality Sector Remains Sensitive to External Risks
Despite the recovery in tourist arrivals, the hotel industry remains highly sensitive to economic conditions, disposable income, foreign tourist arrivals, business and leisure travel, and the growth of the MICE (Meetings, Incentives, Conferences and Exhibitions) segment. The sector is also exposed to external risks, including natural disasters, disease outbreaks, terrorism, political instability, and other disruptions that can affect tourist movement. Hotel demand is inherently cyclical, while occupancy and room rates are influenced by the balance between demand and the addition of new hotel supply. Excessive new capacity can increase competition, put pressure on room rates and affect profitability.
The hospitality sector also faced disruption following the September 8–9, 2025 protests and riots, which were followed by a nationwide curfew and airport closures. Tourist arrivals declined by around 18% year-on-year in September 2025. Despite such disruptions, arrivals recovered toward the end of 2025, with annual arrivals reaching 11.58 lakh. If approved by SEBON, Hotel Siraichuli’s proposed 15 lakh-unit IPO worth Rs. 15 crore will provide the company with access to public capital while adding another hospitality company to Nepal’s growing IPO pipeline.
