According to Infomerics Credit Rating Nepal Limited, Ananta Hospitality Limited (AHL) has managed to secure an IRN BB- rating for its long term bank facility for Rs 1.10 billion, after its 131 room five star deluxe hotel project in Belahiya, Siddharthanagar, Rupandehi is set to progress. The project is strategically located in proximity to the Sunauli Indo Nepal border and Lumbini. Infomerics pointed to the firm’s board, institutional promoter group and equity-led capital structure as factors contributing to the score.
The company was incorporated in 2009 and converted into a public limited company in July 2025. Promoted via an institutional consortium of Rara Eco Holdings, Bhusal Group and Garima Holdings Limited, the four-member board is headed by Executive Chairman Kadam K.C. According to Infomerics, AHL has a debt to equity ratio of about 36:64, indicating a largely equity funded structure. The rating agency also noted the required term loan facility had been fully tied up, reducing the uncertainty of funding to complete the project.
Bhairahawa Hotel Targets Lumbini, Indian And Cross Border Visitors
The proposed hotel is located on a strategically important site immediately adjacent to the Sunauli Indo Nepal border, a key trading and transit point between Nepal and India. Located on the Butwal Sunauli corridor, the project has access to the East West Highway, with Gautam Buddha International Airport located about 3 kilometers from the hotel. Infomerics identified the location as a key strength, due to the hotel’s proximity to the Lumbini Sacred Garden, a UNESCO World Heritage Site. The project’s proximity to the border, airport and Lumbini Sacred Garden provides access to several tourism and travel markets.
With the Sunauli Indo Nepal border as the entry point for visitors, the hotel could attract both pilgrims and cross-border visitors aiming to visit Lumbini and other western Nepalese destinations. Likewise, visitors arriving at Gautam Buddha International Airport would have a local accommodation option. Infomerics also reported that AHL is in the final negotiations for a proposed association with an international hospitality chain. The rating report, however, does not specify the proposed hospitality brand.
Hotel Construction Reaches 78 Percent Before Interior Works
The hotel development has recorded substantial physical progress, with approximately 78 percent of the building’s civil structure completed. The overall financial progress was around 32 percent as of mid July 2026, according to the Infomerics assessment. With the main structure proceeding, the company aims to commence interior works after Dashain (October 2026). AHL aims to start full commercial operations in Fiscal Year 2028, dependent on the completion of the remaining construction and preparations for launching the hotel.
Infomerics identified the completion of the project in line with its estimated budget and the stabilization of the operations of the hotel as important factors for the company. The rating agency noted luxury hospitality projects may take longer to raise revenues and recover fixed operating costs after launch. AHL’s financing position, however, is supported with the required Rs 1.10 billion term loan facility being fully arranged. This reduces the risk of the remaining construction not being funded; the company will nevertheless have to manage through to complete the project and its commercial launch.
Tourism Growth Creates Opportunity Amid Rising Hotel Competition
The long term tourism outlook for Nepal and the government’s support for high end hospitality are also supporting factors identified by Infomerics. The government’s Tourism Decade 2023-2032 aims to attract 3.5 million visitors annually, with concessional financing, tax incentives and supportive foreign investment policies encouraging tourism infrastructure development. These initiatives could support the demand for additional quality accommodation as Nepal expands its tourism capacity. For AHL, the project’s proximity to Lumbini, Gautam Buddha International Airport and the Nepal India border provide a direct access to several key tourism and travel markets.
In contrast, the rating assessment highlights competition and single-property concentration as key challenges for AHL. Nepal’s hotel sector has both organized and unorganized operators, with the recent influx of new properties and investment in tourism infrastructure increasing competition. Infomerics noted hotel supply has been outpacing demand in certain parts of the market, limiting operating performance and profitability. AHL will initially have to rely on a single property located in Rupandehi to compete with established hotels and stabilize operations as the project moves towards it targeted FY2028 commercial launch.
