KTM Hospitality Limited (KTM), a growing player in Nepal’s luxury hospitality sector, has officially submitted its Initial Public Offering (IPO) proposal to the Securities Board of Nepal (SEBON), marking a significant step toward listing on the capital market. The proposal has now been placed in SEBON’s review pipeline.
The KTM Hospitality Limited (KTM) plans to issue 1,550,000 ordinary shares at a par value of Rs 100 per share, aiming to raise Rs 15.50 crore from the public. The IPO, once approved, is expected to strengthen the company’s capital base and support its ongoing expansion in Nepal’s high-end tourism and hospitality segment. RBB Merchant Banking Limited has been appointed as the issue manager for the public offering. However, the company will only be able to proceed with the share issuance after receiving final approval from SEBON.
Strong Credit Profile and Financial Ratings
According to CARE Ratings Nepal Limited, KTM Hospitality Limited has been assigned a long-term bank facility rating of ‘CARE-NP BB-’ and a short-term rating of ‘CARE-NP A4’. These ratings reflect moderate credit risk for long-term obligations and adequate capacity for short-term financial commitments. The ratings highlight both the company’s growth potential and the inherent risks associated with its expansion-heavy business model in the competitive hospitality sector.
Leadership Strength and Industry Experience
KTM Hospitality Limited is chaired by Rameshwar Shah, who also serves as Chairman and CEO of KTM Group Holdings, Nepal. Shah brings over 25 years of experience in outsourcing, hospitality, and international business operations. He has held prominent positions such as Vice President of the Non-Resident Nepali Association (NRNA), President of the Outsourcing Association of Nepal, and advisory roles in key government and private sector institutions including the Central Labour Advisor Council and employer associations under FNCCI and CNI. The company’s governance structure is further strengthened by a professional management team with experience in hospitality development and operations.
International Brand Partnership with Sarovar Hotels
A major strategic highlight for KTM Hospitality is its partnership with Sarovar Hotels Private Limited, part of the globally recognized Louvre Hotels Group headquartered in France. Under a Hotel Management Agreement, the property will be operated under the premium ‘Royal Tulip’ brand. This collaboration is expected to bring international operational standards, global marketing access, and brand-driven hospitality expertise to the project. Industry observers note that this partnership positions KTM Hospitality as one of the emerging luxury resort operators in Nepal with strong international alignment.
Strategic Location in Nepal’s Top Tourist Hub
The company is developing a five-star luxury resort in Sauraha, one of Nepal’s most visited tourism destinations. The property is strategically located near the Chitwan National Park, the Rapti River, and the Kumrose Community Forest, offering direct access to wildlife tourism, jungle safaris, and cultural experiences.
Sauraha is widely regarded as a gateway for jungle tourism in Nepal, attracting both domestic and international visitors for activities such as jeep safaris, elephant rides, birdwatching, and Tharu cultural experiences. The hotel is designed to operate as a premium hospitality destination with 65 rooms built across 4.12 acres, incorporating modern luxury amenities including restaurants, a swimming pool, gym and fitness center, health club, parking facilities, and a helipad.
Nepal’s Tourism Sector Driving Hospitality Expansion
Tourism continues to remain a central pillar of Nepal’s economy, supported by favorable government policies and long-term strategic vision. The FY26 national budget has introduced tax exemptions for hotels and resorts and allocated Rs 13.28 billion to the Ministry of Culture, Tourism and Civil Aviation.
Furthermore, the government has declared FY23–FY33 as the “Tourism Decade,” aiming to position Nepal as a leading global travel destination. Despite setbacks during the COVID-19 pandemic, Nepal’s tourism sector has shown strong recovery. Tourist arrivals, which peaked at 1.197 million in FY19, dropped sharply during the pandemic but rebounded steadily in subsequent years, reaching 1.148 million in FY24 and continuing upward momentum into FY25.
Hospitality Sector Outlook and Market Dynamics
The hospitality industry in Nepal remains closely linked to tourism trends, foreign tourist arrivals, and macroeconomic stability. Demand is influenced by factors such as leisure travel, business tourism, and MICE (meetings, incentives, conferences, exhibitions) activities.
However, the sector remains cyclical and sensitive to external shocks including political instability, global economic fluctuations, health crises, and natural disasters. Industry experts note that while demand growth is strong, hotel profitability also depends on supply-side management and market positioning. In this context, KTM Hospitality’s entry into the public market is seen as a strategic move to raise capital during a period of tourism recovery and long-term sector expansion.
Company Background and Expansion Vision
Incorporated on January 16, 2020, KTM Hospitality Limited was later converted into a public limited company on July 9, 2024. The company is currently developing its flagship luxury resort project in Chitwan as part of its long-term growth strategy in Nepal’s premium hospitality segment. The planned IPO is expected to support construction completion, operational scaling, and brand positioning under the internationally recognized Royal Tulip franchise.
KTM Hospitality Limited’s IPO proposal entering SEBON’s pipeline reflects growing investor interest in Nepal’s tourism-led hospitality industry. With strong leadership, an international brand partnership, and a strategically located luxury project, the company is positioning itself to benefit from Nepal’s expanding tourism economy. If approved, the IPO will not only strengthen KTM’s financial foundation but also contribute to the broader development of high-end tourism infrastructure in Nepal, particularly in key destinations like Chitwan.
