Kathmandu: Eight of Nepal’s five-star hotels have failed to renew their operating licenses, according to the Department of Tourism’s annual report for fiscal year 2024/25.
Out of 31 five-star hotels currently operating in the country, 28 have official classification from the department. Seven of these, plus one luxury heritage boutique hotel, missed their mandatory five-year renewal deadline.
The failures were recorded last fiscal year, with the boutique hotel — Dwarika’s Kathmandu Village Hotel — falling out of compliance after July this year.
The affected hotels include The Soaltee Kathmandu, Hotel de l’Annapurna, The Everest Hotel International, The Fulbari Limited, Oriental Hotel (Radisson), Hotel Yak & Yeti, and Hotel Shangri-La. While some, like Radisson, Yak & Yeti, and Soaltee remain operational, they have not updated their registration despite being legally required to renew every five years.
The Everest Hotel, which was closed for five years after the 2015 earthquake, has resumed partial operations and hosted government programmes. However, it remains without a valid classification due to its pending Environmental Impact Assessment (EIA) report, leaving its star rating suspended. The Department says it will reinstate the rating only after compliance is met.
Non-renewed hotels lose the legal right to conduct foreign currency transactions, access customs duty concessions, import tourist vehicles, or receive other tourism-related benefits. Despite this, some — including Soaltee, Yak & Yeti, Radisson, and The Everest — are reportedly still engaging in foreign currency transactions, with claims that certain hotels have obtained temporary permits for such activities.
Hotel de l’Annapurna has been closed since the COVID-19 pandemic and is undergoing reconstruction. Fulbari and Shangri-La are also inactive. The Department’s report notes that some hotels owe government dues and casino liabilities, while others face legal disputes.
Under Nepal’s Tourism Industry Service Delivery Directive 2070, hotels require an active star classification to gain the Nepal Rastra Bank’s permission for foreign currency dealings. The Department insists it will not recommend unclassified hotels for such transactions.
The law mandates hotel renewal every five years, with no fees charged for the process. Operators must also submit biannual reports, but several prominent establishments have ignored these requirements.
Tourism officials warn that without renewal, affected hotels cannot legally offer services to foreign guests, import goods at concessional rates, or operate tourist vehicles — raising concerns about regulatory compliance in one of Nepal’s most lucrative tourism sectors.
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