Kathmandu: Hotel Arts Kathmandu, a luxury property that opened with much fanfare in Thamel’s Chaksibari a decade ago, has gone into auction after failing to repay loans owed to Rastriya Banijya Bank.
The 60-room hotel, built by tourism entrepreneur Chiranjibi Bhatta of Gorkha in March 2016, defaulted on bank loans totaling Rs 481.7 million. The state-owned bank has now issued a public auction notice to recover its dues.
The hotel, developed on Bhatta’s own land purchased in 2003, was launched with an investment of around Rs 500 million and featured eight stories, modern amenities, and panoramic views of Kathmandu. Despite his 34 years in the tourism sector, Bhatta’s ambitious project collapsed under the weight of mounting debt.
According to the notice, the bank will auction 15 ropanis of land registered in Bhatta’s name at Land Revenue Office Dillibazar, along with the hotel building constructed on it. In addition, one ropani of land and a building registered under his wife Laxmi’s name, including its fixtures and equipment, are also set to be auctioned.
The minimum bid price has been fixed at Rs 481,713,900. The auction follows Bhatta’s failure to clear various loans, including overdraft facilities, a COVID-19 relief loan at 10 percent interest, and term loans.
The bank said it had repeatedly issued written and verbal reminders to Bhatta, and even published a 35-day auction notice earlier, but repayment was not made. The latest notice gives Bhatta 15 days to settle the outstanding principal, accrued interest, and charges to reclaim his mortgaged properties.
If repayment is not made within the deadline, the bank has stated it will proceed with the auction, and if the properties fail to sell, the bank reserves the right to acquire them itself or file a case at the Debt Recovery Tribunal.
The auction marks the collapse of Bhatt’s long-cherished plan to run a successful hotel venture in Kathmandu. Once considered a rising name in Nepal’s tourism industry, his inability to service the loans has now pushed his decade-old investment into liquidation.
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