Hyatt Regency Kathmandu has announced that it will remain closed for repair and renovation until further notice after suffering extensive damage during the Gen-Z protest on Bhadra 24. The hotel’s management and employee representatives have reached a formal agreement ensuring that staff members will continue to receive a minimum basic salary for one year during the reconstruction period.
Extensive Damage Forces Indefinite Closure
The luxury five-star property (Hyatt Regency Kathmandu), one of Kathmandu’s most prominent hotels and a major hospitality landmark, was forced to halt all operations immediately after the violent incidents that unfolded during the Gen-Z protest. The hotel premises witnessed vandalism, arson, and looting, causing severe destruction to its infrastructure, interiors, and essential service systems.
According to the hotel’s management, the scale of physical and financial losses is significant enough to require at least one full year of reconstruction and refurbishment before the property can reopen to guests.
In an official statement, the management noted, “The movement caused extensive financial and physical damage. The hotel is not in condition to resume operations without complete repairs.” This closure marks one of the longest operational halts in the history of Nepal’s hospitality industry due to protest-related destruction.
Agreement Ensures One-Year Salary Continuation
To address employee concerns during the prolonged shutdown, the hotel has entered into an agreement promising the minimum basic salary set by the Government of Nepal for one year. This arrangement aims to safeguard workers’ livelihood during the period of uncertainty.
As part of the agreement:
- Employees will receive one year of minimum basic salary.
- The hotel will continue contributing to the Social Security Fund (SSF).
- Salary and SSF contributions will follow all government regulations.
This decision comes as a major relief to hundreds of staff members whose employment has been directly affected by the closure. The management emphasized that ensuring income continuity during reconstruction reflects the hotel’s commitment to worker welfare and long-term employment stability.
Employees to Be Reinstated After Reconstruction
Hyatt Regency Kathmandu has confirmed that employees covered under the agreement will be reinstated to their positions once repair and reconstruction work is completed. According to the management, this arrangement ensures both job continuity and operational stability once the hotel reopens. The commitment to reinstatement has helped ease concerns among workers who feared prolonged unemployment or permanent job loss due to the operational shutdown. Hotel representatives stated that reconstruction work will be carried out in phases and that all staff will be informed about progress and timelines.
Positive Response From Majority of Employees
Most employees have responded positively to the agreement, viewing it as a fair and considerate solution during an unprecedented crisis. With tourism slowly recovering in Nepal and hospitality-sector jobs still limited, the continuation of minimum basic pay provides essential economic support to affected workers. Sources familiar with the discussion say the negotiations were collaborative, with both parties prioritizing long-term stability over immediate disputes.
Hotel Clarifies Position on Non-Acceptance of Agreement
For employees who choose not to accept the agreement, the hotel has clarified that it will have no option but to initiate workforce reduction procedures in accordance with Nepal’s Labor Act.
Management officials emphasized that retrenchment would be a last resort but remains legally necessary if mutual terms cannot be agreed upon. This clause is expected to encourage a majority of workers to opt into the agreement since it assures income, SSF coverage, and eventual reinstatement.
A Major Setback for Nepal’s Hospitality Sector
The prolonged closure of Hyatt Regency Kathmandu represents a significant loss for Nepal’s hospitality industry, tourism sector, and local economy. The hotel has historically hosted international conferences, diplomatic events, and high-end tourism, contributing substantially to Kathmandu’s service economy.
Industry experts note that the year-long shutdown will create ripple effects across tourism supply chains, including travel companies, event organizers, vendors, and local businesses. However, the hotel assures that once repairs are complete, it aims to reopen with improved facilities and infrastructure, restoring its role as a key hospitality hub in Nepal.
