ICRA Nepal has officially withdrawn the credit ratings assigned to KTM Hospitality Limited following the company’s formal request to discontinue its rating coverage. The rating withdrawal, announced on June 11, 2026, affects the company’s total loan facilities amounting to NPR 1 billion.
According to the latest rating action summary, ICRA Nepal withdrew the company’s long-term loan rating of [ICRANP] LB ‘Issuer Not Cooperating’ assigned to loan limits worth NPR 955 million, along with the short-term loan rating of [ICRANP] A4 ‘Issuer Not Cooperating’ attached to NPR 45 million in short-term loan limits.
The withdrawal was carried out in accordance with Nepal’s Credit Rating Regulations 2011, following KTM Hospitality Limited’s official application requesting termination of its rating relationship with the agency.
Withdrawal Follows Company’s Request to Discontinue Rating Coverage
In its official statement, ICRA Nepal stated that the rating withdrawal decision was taken under its internal Withdrawal and Suspension Policy alongside regulatory provisions outlined under the national credit rating framework.
As part of its regular rating process, ICRA Nepal normally reviews whether sufficient financial and operational information is available to continuously monitor the performance of rated entities. However, the agency stated that KTM Hospitality Limited requested discontinuation of its ratings, prompting the formal withdrawal process.
Because the ratings have now been withdrawn, ICRA Nepal noted that key rating drivers, financial indicators, future rating sensitivities, and analytical observations related to the company are no longer being maintained or disclosed under the rating report.
The agency further confirmed that it had been seeking updated operational and financial information from the company as part of routine monitoring procedures before the withdrawal request was submitted.
Luxury Five-Star Resort Project Under Development in Chitwan
Established in January 2020, KTM Hospitality Limited has been developing a major luxury hospitality project in Nepal’s popular tourism destination of Sauraha under the brand name Royal Tulip Chitwan Nepal.
The project is planned as a five-star luxury resort positioned to strengthen Nepal’s premium hospitality sector while expanding high-end accommodation options within the country’s growing tourism industry.
The company had previously announced plans to develop a property featuring 61+4 hotel keys, with the target of commencing commercial operations by mid-April 2025, according to information provided during ICRA Nepal’s last rating assessment exercise.
The project has drawn attention within Nepal’s tourism and hospitality industry due to its positioning within Chitwan, one of Nepal’s leading tourism destinations attracting both domestic and international travelers.
International Hotel Partnership Signed with Louvre Hotels Group
To strengthen the international branding and operational standards of the upcoming property, KTM Hospitality Limited had earlier signed a hotel management agreement with Louvre Hotels Group, one of Europe’s leading hospitality groups.
Under the agreement, the Chitwan-based resort is expected to operate under the globally recognized Royal Tulip luxury hospitality brand, which manages a portfolio of premium hotels and resorts in multiple countries worldwide.
Industry experts previously viewed the partnership as an important step in elevating Nepal’s luxury tourism infrastructure while attracting international travelers seeking high-end accommodation experiences beyond traditional tourism hubs.
Company Led by Chairman Rameshwar Shah
KTM Hospitality Limited remains primarily controlled by businessman Rameshwar Shah, who holds a controlling stake in the company and has been leading the development of the luxury resort project since the company’s incorporation.
The project has been considered one of the emerging hospitality investments aimed at strengthening premium tourism infrastructure within Chitwan, a destination internationally recognized for wildlife tourism, jungle safaris, and gateway access to Chitwan National Park.
Hospitality Sector Closely Watches Project Development
While the rating withdrawal itself does not necessarily indicate operational or financial distress, industry observers note that such developments often attract attention from investors, lenders, and tourism stakeholders monitoring large hospitality investments.
With Nepal’s tourism sector continuing to recover and luxury hospitality investment increasing steadily, the progress of projects such as Royal Tulip Chitwan Nepal remains important for the country’s long-term tourism infrastructure growth.
The withdrawal announcement now shifts attention toward KTM Hospitality Limited’s future financing strategy and the development timeline of one of Nepal’s notable upcoming luxury resort projects in the heart of Chitwan’s tourism market.
