Nepal’s hotel and tourism sector is witnessing a surge of Initial Public Offering (IPO) applications as multiple hospitality companies seek to raise capital from the general public. The Nepalese capital market is witnessing a surge in Initial Public Offerings (IPOs) from the hospitality, tourism, and cable car sectors. Several prominent companies have submitted proposals to the Securities Board of Nepal (SEBON) to raise capital through public offerings. These IPOs are attracting investor attention, especially from retail investors seeking moderate to high-return opportunities in the growing tourism and hospitality industry.
Apex Hospitality Limited
Apex Hospitality Limited has submitted a proposal to SEBON to issue 2,250,000 shares, aiming to raise Rs. 22.50 crore. The application was filed on Ashwin 12, 2080. Himalayan Capital Limited has been appointed as the issue manager for the public offering.
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) assigned Apex Hospitality an issuer rating of IRN B+ (Is), indicating a high risk of default in servicing financial obligations on time. The company has been actively operating in Nepal’s hospitality sector, although specific details of its hotels or services were not disclosed in the IPO filing.
Annapurna Cable Car Private Limited
Annapurna Cable Car, a Public Limited company incorporated on March 10, 2010, has also filed its IPO proposal with SEBON. The company aims to issue 4,340,000 shares to raise Rs. 43.40 crore, with Muktinath Capital Limited serving as the issue manager.
CARE Ratings Nepal Limited (CRNL) has revised the long-term bank facility rating from CARE-NP BB- to CARE-NP B+ and reaffirmed its short-term rating at CARE-NP A4. Annapurna Cable Car operates a ropeway project from Seti Bagar, near Fewa Lake, to Sarangkot in Pokhara, covering a 2.3 km cable car journey with 18 gondolas to transport passengers.
Akama Hotel Limited
Akama Hotel Limited (AHL), a five-star property in Kathmandu operating under the brand name ‘Ramada by Wyndham Kathmandu Dhumbarahi,’ has submitted a proposal to issue 4,285,000 shares, raising Rs. 42.85 crore. The application was filed on Ashadh 26, 2081, with Sanima Capital Limited as the issue manager.
CARE Ratings Nepal Limited upgraded AHL’s issuer rating to CARE-NP BB (Is) from CARE-NP BB- (Is), indicating moderate risk of default. The hotel, situated on 1.13 acres, features 108 rooms, including 99 deluxe rooms and 1 suite. Established in 2014 as a private limited company, it was converted to a public limited company on July 3, 2022.
Thamel Plaza Hotel and Suites Limited
Thamel Plaza Hotel and Suites Limited, operating the four-star ‘Ramada Encore Kathmandu Thamel,’ has applied to SEBON for an IPO of 2,250,000 shares to raise Rs. 22.50 crore, with Nepal SBI Merchant Banking Limited as the issue manager. The application was submitted on Kartik 21, 2081.
The company was incorporated on January 5, 2012, and converted into a public limited company on July 13, 2023. Infomerics Nepal has assigned it an issuer rating of IRN BB (Is), indicating moderate default risk. The hotel spans 1,170 sq. m. with 90 rooms, with Mr. Jagannath Gyawali holding around 56% of shares as of September 13, 2024.
Varnabas Museum Hotel Private Limited
Varnabas Museum Hotel Pvt. Ltd., a luxury 5-star hotel operating since February 2024, has filed a proposal to issue 3,960,000 shares, aiming to raise Rs. 39.60 crore. Himalayan Capital Limited is appointed as the issue manager. The proposal was submitted on Falgun 19, 2081.
ICRA Nepal downgraded the long-term loan rating from LB to LB-, while reaffirming the short-term rating at A4. Varnabas Museum Hotel, established in June 2018, uniquely showcases Nepal’s diverse ethnicities, with each floor themed around a specific cultural group.
Mountain Glory Private Limited
Mountain Glory Limited, managing the 64-room Mountain Glory Forest Resort & Spa in Pokhara, has submitted a proposal to issue 4,000,000 shares to raise Rs. 40 crore. The application was filed on Chaitra 26, 2081, with Laxmi Sunrise Capital Limited as the issue manager.
CARE Ratings Nepal Limited withdrew the previous rating of CARE-NP B/A4 due to a lack of cooperation from the company. Established on May 24, 2007, the hotel spans 7.42 acres and is classified as a Tourist Standard Hotel.
Maulakali Cable Car Limited
Maulakali Cable Car Limited plans to issue 1,879,130 shares at Rs. 100 per share, raising Rs. 18.79 crore. The IPO application was submitted on Kartik 24, 2082, with NIC Asia Capital Limited as the issue manager.
ICRA Nepal reaffirmed the issuer rating of BB- (Is) and the long-term loan rating at LBB-, indicating moderate risk of default. The company operates a cable car and a 65-key resort in Gaindakot, Nawalpur, with operations starting in April 2023 (cable car) and May 2025 (resort).
Nagarkot Resort Limited
Nagarkot Resort Limited submitted a proposal to issue 1,500,000 shares at Rs. 100 per share, generating Rs. 15 crore. NMB Capital Limited is appointed as the issue manager, with the submission date on Mangsir 15, 2082.
CARE Ratings Nepal Limited has assigned an issuer rating of CARE-NP BB (Is), reflecting moderate default risk. The resort, incorporated in 2018, has 24 rooms currently operational and aims to provide premium accommodations with scenic mountain and garden views.
Hotel Sabrina Limited
Hotel Sabrina, located in Budhanilkanth-06, Kathmandu, has filed a proposal to issue 4,704,000 shares at Rs. 100 per share, raising Rs. 47.04 crore. NIC Asia Capital serves as the issue manager. The application was submitted on Mangsir 16, 2082. Named the best hotel in Nepal in 2021, Hotel Sabrina is managed under the Regenta Place brand of Royal Orchid Hotels and is the first property in Nepal under this brand.
Swornim Hotel Limited (Holiday Inn Express Kathmandu)
Swornim Hotel Limited (SHL) plans to issue 3,800,000 shares at Rs. 100 each, aiming to raise Rs. 38 crore. Global IME Capital Limited is appointed as the issue manager. SHL, formerly Swornim Boutique Hotel Private Limited, became public in 2024.
Infomerics Nepal assigned an issuer rating of IRN BB+ (Is), indicating moderate default risk. SHL operates the 100-key Holiday Inn Express Kathmandu under a management agreement with InterContinental Hotels Group (IHG).
Hotel Ichchha Limited
Hotel Ichchha Limited has proposed an IPO of 3,500,000 shares at Rs. 100 each, generating Rs. 35 crore. Himalayan Capital Limited is the issue manager. ICRA Nepal assigned an issuer rating of BB, indicating moderate default risk. The five-star hotel in Simara, Bara, was incorporated in 2015 and converted into a public limited company in 2024.
Atithi Resort and Spa Limited
Atithi Resort and Spa has proposed an IPO of 1,625,000 shares at Rs. 100 each, aiming to raise Rs. 16.25 crore. Prabhu Capital Limited manages the issue. CARE Ratings Nepal Limited assigned the issuer rating of CARE-NP BB+, reflecting moderate default risk. The resort operates with 50 rooms in Pokhara, offering amenities like a spa, swimming pool, gym, and conference hall.
Hotel Park Land Limited
Hotel Park Land has submitted a proposal to issue 1,500,000 shares at Rs. 100 per share to raise Rs. 15 crore. Citizens Capital Limited is appointed as the issue manager. CARE Ratings Nepal Limited assigned an issuer rating of CARE-NP BB- (Is). The hotel, established in 2007 in Chitwan, operates 32 rooms with a hall and swimming pool facilities.
