Taragaon Regency Hotel Limited (TRH), operator of Hyatt Regency Kathmandu, has reported a sharp deterioration in its financial performance in the fourth quarter of fiscal year 2082/83, posting a net loss of Rs. 70.58 crores compared to a net profit of Rs. 46.86 crores in the corresponding quarter of the previous fiscal year.
The steep decline comes amid a major disruption to the Taragaon Regency Hotel Limited (TRH)’s hotel operations following the Gen Z protests of September 2025, during which Hyatt Regency Kathmandu suffered extensive damage and was subsequently forced to suspend its operations. Contemporary reports said the hotel sustained severe damage to its lobby and around 70 rooms, while its structure, equipment and security systems were also affected.
Revenue Plunges 88.70% of Taragaon Regency Hotel Limited (TRH)
Taragaon Regency Hotel Limited (TRH)’s financial performance was severely affected by the collapse in operating income. The company’s revenue from operations plunged 88.70% to Rs. 17.19 crores in Q4 FY 2082/83 from Rs. 1.52 Arba recorded in Q4 FY 2081/82. The sharp fall reflects the significant disruption to the hotel’s normal business activities following the September unrest. Hyatt Regency Kathmandu remained closed after suffering extensive damage during the protests, affecting accommodation, food and beverage, events and other hospitality-related revenues.
Other Income Provides Limited Support
While operating revenue declined sharply, the company recorded a 13.99% increase in other income, which reached Rs. 24.43 crores in the review period, compared to Rs. 21.43 crores a year earlier. However, the increase in other income was insufficient to offset the substantial decline in revenue generated from the company’s core hotel operations.
Company Swings to Rs. 70.58 Crore Net Loss
The impact of the operational disruption is most visible in the company’s bottom line. Taragaon Regency Hotel Limited (TRH) recorded a net loss of Rs. 70.58 crores in Q4 FY 2082/83, compared with a net profit of Rs. 46.86 crores in the corresponding quarter of FY 2081/82. The company had generated strong profits in the previous fiscal year, but the prolonged interruption to hotel operations and the resulting decline in business significantly weakened its financial position.
Operating and Administrative Costs Decline
With hotel operations substantially disrupted, the company’s expenses also declined during the review period. Operational expenses fell 65.87% to Rs. 25.11 crores from Rs. 73.57 crores in the previous year. Similarly, administrative costs declined 71.60% to Rs. 8.71 crores from Rs. 30.68 crores. Although the reduction in expenses helped contain some of the financial pressure, the decline was not sufficient to compensate for the massive contraction in operating revenue.
Reserves and Surplus Drop 68.44%
The company’s financial position also weakened significantly during the period. Reserves and surplus declined 68.44% to Rs. 36.70 crores from Rs. 1.16 Arba in the previous fiscal year. Meanwhile, the company’s paid-up capital remained unchanged at Rs. 1.96 Arba. The sharp reduction in reserves reflects the impact of the company’s deteriorating profitability during the review period.
Investment Portfolio Falls 60.11%
Taragaon Regency Hotel Limited (TRH)’s investment portfolio also contracted substantially. The company’s investment stood at Rs. 80.06 crores, down 60.11% from Rs. 2.01 Arba in Q4 FY 2081/82. Similarly, property, plant and equipment (PPE) declined 43.62% to Rs. 99.08 crores from Rs. 1.76 Arba. The changes in the company’s asset and investment position come as it faces the financial consequences of the disruption to its hotel operations and the damage sustained during the protests.
EPS Turns Negative
Following the loss, TRH’s annualized earnings per share (EPS) stood at negative Rs. 35.97. The company’s net worth per share was recorded at Rs. 118.71, while its quarter-end P/E ratio stood at negative 21.82 times. The company’s shares closed the quarter at Rs. 785.
Gen Z Protest Deals Heavy Blow to Hyatt Regency
The financial results come against the backdrop of the September 2025 Gen Z movement, which had a major impact on Nepal’s tourism and hospitality industry. According to reports, Hyatt Regency Kathmandu was among the hotels affected by the unrest. Taragaon Regency Hotel Limited (TRH) stated that the protests on September 8 and 9 involved vandalism, looting and arson, causing extensive physical damage to the property. The hotel was subsequently closed, with management beginning repair and reconstruction work.
Reports also stated that around 70 rooms and the hotel’s lobby were severely damaged, while the hotel’s infrastructure, equipment and security systems were affected. The closure forced the suspension of commercial services and significantly disrupted the company’s tourism-related business.
The disruption came at a particularly difficult time for Nepal’s hospitality sector, as the September unrest occurred during a period when tourism businesses were attempting to recover from earlier challenges. The wider hotel industry subsequently reported significant financial pressure following the protests.
Recovery Now Depends on Reconstruction
Taragaon Regency Hotel Limited (TRH)’s latest financial results highlight the severe financial consequences of the prolonged disruption to Hyatt Regency Kathmandu’s operations. With operating revenue falling by nearly 89% and the company moving from a sizeable profit to a substantial loss, the pace of reconstruction and eventual resumption of hotel services will be critical to the company’s recovery. The hotel management has indicated that repair and reconstruction work is necessary before operations can resume, making the restoration of the property and return to normal business activity key factors for Taragaon Regency Hotel Limited (TRH)’s financial performance in the coming periods.
Major Highlights of Taragaon Regency Hotel Limited (TRH):
| Particulars (Rs in 000) | Taragaon Regency Hotel (TRH) | ||
| Q4 2082/83 | Q4 2081/82 | Difference | |
| Paid Up Capital | 1,962,120 | 1,962,120 | 0.00% |
| Reserves & Surplus | 367,030 | 1,162,829 | -68.44% |
| Property, Plant and Equipment | 990,762 | 1,757,310 | -43.62% |
| Investment | 800,594 | 2,007,238 | -60.11% |
| Revenue from Operation | 171,943 | 1,521,649 | -88.70% |
| Other Income | 244,279 | 214,307 | 13.99% |
| Operational Expenses | 251,121 | 735,727 | -65.87% |
| Administrative Cost | 87,117 | 306,792 | -71.60% |
| Net Profit | (705,789) | 468,576 | -250.62% |
| Annualized EPS (In Rs.) | -35.97 | ||
| Net Worth per Share (In Rs.) | 118.71 | ||
| Qtr End P/E Ratio | -21.82 | – | |
| Qte End Price | 785 | – | |
