Kathmandu: The cost of the Hyatt Place hotel being developed in Kupondole, Lalitpur, has risen by 4 percent compared to initial estimates.
The project, being constructed by Scion Hotels Pvt Ltd, is now more expensive than originally projected.
The company, established in 2021, is building a five-star Hyatt Place brand hotel in Kupondole.
Initially, the construction cost was estimated at Rs 2.868 billion. However, the company now reports that the cost has increased to Rs 2.976 billion. The investment ratio has been revised to 69:31, down from the earlier 75:25 split.
According to the company, high land acquisition and location costs contributed to the increase. On average, the cost per room has reached Rs 27 million.
The hotel will feature 112 fully furnished rooms, compared to the earlier plan of 96 rooms spread across 15,000 square feet.
In addition to accommodation, the property will include a casino and a banquet facility.
So far, 17 percent of equity investment and 61 percent of loan financing for the project have been secured.
The company reported that construction has achieved 29 percent physical progress to date. The hotel is scheduled to begin operations by July 2027.
Owned by Anish Agrawal and Kavita Agrawal, the company has sought a credit rating of Rs 2.05 billion for long-term loans. Previously, it had obtained ratings for Rs 2.20 billion in both long-term and short-term loans.
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