The Kshamadevi Group has exited Mechi Crown, a five-star hotel in Jhapa, by selling its entire 11 percent stake to the hotel’s director and promoter, Balaram Sapkota. Following the transaction, Sapkota’s ownership in the luxury hotel has increased to 51 percent, making him the majority shareholder. The transaction marks the first major change in the hotel’s ownership structure since it began commercial operations in October 2020.
Shares Remain Within Existing Ownership Group
Sapkota said he acquired the shares after fellow investors suggested that the stake should remain within the existing ownership group rather than be sold to outside investors. However, he has not disclosed the financial value of the transaction. Following the ownership change, Mechi Crown continues to be jointly owned by Balaram Sapkota, Pavitra Kumar Karki and Marigold Jewelers.
Rs 2.1 Billion Invested in Hotel Expansion
Mechi Crown was initially developed with an investment of approximately Rs 1.5 billion. The hotel later invested an additional Rs 600 million to expand its capacity by 100 rooms in response to growing demand from tourists and visitors. The hotel currently has 205 rooms, including suites, villas, club rooms and deluxe rooms. In addition to accommodation facilities, the property offers restaurants, banquet halls, a helipad, spa, gymnasium, swimming pool, tennis court and beauty salon.
Strategic Location Supports Tourism and Events Business
Mechi Crown is located approximately 12 kilometres from India’s Bagdogra International Airport and near the Kakarbhitta border point, giving it a strategic advantage in attracting visitors from India and other neighbouring markets. The hotel has emerged as a popular destination for weddings, tourism and casino entertainment. Its Vegas Casino, one of the largest casinos in Nepal, attracts a significant number of visitors from India and Bangladesh. The strong flow of international visitors, particularly from neighbouring countries, has helped the hotel maintain robust business activity even after the COVID-19 pandemic.
Ownership Change Comes as Hotel Expands Regional Appeal
The change in ownership comes as Mechi Crown continues to strengthen its position as a major hospitality and entertainment destination in eastern Nepal. With its expanded room capacity, luxury facilities, strategic location and casino business, the hotel has become an important component of the tourism infrastructure in Jhapa and the wider eastern region.
The continued presence of existing investors, alongside Sapkota’s increased majority ownership, is expected to provide continuity in the hotel’s management and business operations. The property’s proximity to the Indian border and major international airport also gives it significant potential to benefit from cross-border tourism and the growing demand for high-end hospitality services in the region.
