Kathmandu: The cost of the Hotel Eastern Nepal project under construction in Dhulabari, Jhapa, has risen sharply, exceeding initial estimates by more than Rs 1 billion. What was originally planned as a Rs 2.14 billion investment has now expanded to Rs 3.27 billion, reflecting significant revisions in scope and execution.
According to project updates, around 40 percent of the financial progress had been completed by October 2025. The developers plan to begin partial operations from April 2026, with the hotel expected to run at full capacity from 2027 onward. The rise in project cost has been attributed to several factors, including plans to hand over hotel management to the Holiday Inn brand, the addition of a casino, and the need to acquire additional land.
For long-term financing, the company has secured a credit rating for loans amounting to Rs 2.29 billion. Established in 2018, the company is developing a five-star hotel with 98 rooms in Dhulabari. The project is owned by New Infra Haven Group Holding Company and is overseen by a three-member board of directors. One of the board members is Binita Thapa, who is the wife of former Energy Minister Deepak Khadka.
The hotel is being built on a total area of 110,444 square feet and will include a casino and banquet facilities. In addition to the 98 guest rooms, the property will offer food and beverage outlets, a swimming pool, conference halls, banquet spaces, a spa, and other premium amenities.
The project follows a debt-to-equity ratio of 70:30, with Rs 2.29 billion being raised through bank loans. Its strategic location near East–West Highway, the experience of the management team, and increasing government support for the tourism sector are cited as key strengths of the venture.
At the same time, developers acknowledge several challenges, including the risk of construction delays, exposure to high interest rates, and intense competition within the hotel industry. With only 40 percent of construction completed so far, delivering the project on time and within the revised budget remains a major test for the company.
Jhapa’s proximity to the Indian border and its emergence as a growing tourism hub mean the hotel is primarily targeting Indian visitors as well as domestic tourists. However, given the scale of investment and the long gestation period typical of large hospitality projects, financial performance is expected to remain under pressure during the initial years of operation.
This will be the second hotel project linked to Deepak Khadka’s investment interests. His first venture, a Holiday Inn hotel in Budhanilkantha, Kathmandu, is already in operation.
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