Kathmandu: The cost of the hotel and apartment complex being constructed by Summit Hotel Pvt. Ltd. in Kupondole, Lalitpur has increased significantly. The company’s total project cost has risen from Rs 7 billion to nearly Rs 12 billion.
Initially, the company had estimated the cost of building the hotel and apartments at Rs 6.94 billion. That cost has now increased by 68 percent. The company has projected that the total construction cost will reach Rs 11.68 billion.
According to the company, the rise in total cost is mainly due to the expansion of the construction area. The built-up area has been increased by 28 percent compared to the original plan. In addition, the company has extended the foundation work of the building.
For the construction of the hotel and apartments, the company has obtained a credit rating for Rs 1.49 billion. Of this, Rs 696.4 million is for long-term loans and Rs 800 million for short-term loans. The company had previously taken a long-term loan of Rs 700 million.
Originally, the company was jointly owned by the Chaudhary Group (CG) and the IJ Group. So far, 55 percent of the apartments have been booked, while 45 percent remain unsold. The company has achieved 23 percent financial progress and 39 percent physical progress on apartment construction.
Currently, the hotel has three investors: R&R Heritage Pvt. Ltd. of Chaudhary Group holds a 51 percent stake; Gen Infra and Builders Pvt. Ltd. of the IJ Group holds 34 percent; and Ramesh Sharma owns 15 percent. Previously, there were only two investors — Chaudhary Group held 60 percent, and Gen Infra and Builders Pvt. Ltd. held the remaining 40 percent.
Established in 1997, the company had been operating a four-star hotel with 73 rooms at Kupondole Heights. However, it has since demolished the old building and started constructing a new hotel complex consisting of one main hotel building and two residential apartment towers. The new complex will feature 150 apartment units.
Earlier, the plan was to build 144 apartment units. The company plans to sell these apartment units directly to buyers.
The new hotel will include 135 rooms and facilities. Construction of the hotel has not yet begun. According to the company, the hotel is currently in the design phase, and construction work will begin soon.
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