The Vedalaya Group is set to develop a five-star luxury hotel in Mechinagar, Jhapa, under the prestigious Soaltee Hotels & Resorts, marking a significant expansion of the brand’s footprint. Vedalaya Group has announced plans to develop a five-star hotel in partnership with Royal Recreation Nepal. The project, branded as Hotel Soaltee Jhapa, aims to expand luxury hospitality services in eastern Nepal.
Large-Scale Hospitality Project in Eastern Nepal
The proposed hotel will be constructed on a total area of 665,577 square feet in Mechinagar. According to the company, the property will feature 180 well-appointed rooms along with modern amenities expected of an international-standard five-star hotel. Royal Recreation Nepal, which was registered at the end of 2021, is leading the project development and has already initiated construction activities.
Investment Estimated at Rs. 3 Arba
The total estimated cost of the project stands at approximately Rs. 3 Arba. Through credit rating assessments, the company has projected a construction cost of around Rs. 2.84 Arba. The investment structure is set at a debt-to-equity ratio of 69:31. To finance the project, the company has secured a credit rating of Rs. 1.78 Arba, including Rs. 1.73 Arba in long-term loans and Rs. 5 crore in short-term borrowing.
Construction Progress and Timeline
As per project updates, around 13 percent of the physical construction work has been completed so far, while 14 percent of the required equity has already been arranged. The developers have set a target to complete construction and begin commercial operations by 2028, positioning the hotel as a key hospitality destination in eastern Nepal.
Partnership with Soaltee Brand
The hotel will operate under a franchise model in collaboration with Soaltee Hotels & Resorts, one of Nepal’s most established names in the hospitality sector. With over 57 years of experience, the Soaltee brand is widely recognized as a pioneer in Nepal’s hotel industry. The company currently operates several high-end properties, including The Soaltee Kathmandu, The Soaltee Itahari, The Soaltee Westend Itahari, and The Soaltee Westend Premier Nepalgunj.
Strategic Expansion of Luxury Tourism
Officials said the new project reflects a growing trend of expanding luxury hospitality services beyond traditional tourist hubs like Kathmandu and Pokhara. The Mittal family-operated company behind the project aims to strengthen Nepal’s tourism infrastructure by bringing international-standard accommodation facilities to Jhapa, a region with increasing tourism and business potential.
Ownership and Financial Structure
Vedalaya Group holds a 60 percent stake in Soaltee Hotels, while the holding company maintains a 40 percent stake in the new venture. This partnership structure is expected to leverage both financial strength and brand expertise.
Boost to Regional Tourism and Economy
Industry experts believe that the establishment of a five-star hotel in Mechinagar will significantly contribute to regional economic growth by creating employment opportunities, attracting high-end tourists, and supporting related sectors.
With improved connectivity and increasing visitor interest in eastern Nepal, projects like Hotel Soaltee Jhapa are expected to play a crucial role in diversifying the country’s tourism landscape and promoting balanced regional development.
