Kathmandu: The estimated cost of the five-star hotel being developed in Lumbini by the Golyan Group has surged significantly, with the project now projected to cost an additional Rs 2.66 billion.
The hotel, being built by Ved Hospitality, was initially estimated to cost around Rs 4.01 billion. However, the latest projection places the total investment at approximately Rs 6.67 billion, marking a 66 percent increase in project costs.
Despite rising investment, the project is expected to benefit from the long-term value-add associated with experienced investors and its partnership with the Hyatt brand.
The company has also revised its debt-to-equity structure. It is currently maintaining a 67:33 ratio, compared to the earlier planned structure of 75:23.
According to the company, financing arrangements for Rs 2.8 billion out of the total planned debt of Rs 4.5 billion have already been secured, while the remaining Rs 1.7 billion is still in the process of being arranged.
The company operating the project, Golyan Hotel Limited, was registered in 2022 and is rapidly advancing the construction of the luxury hotel in Mayadevi Rural Municipality.
The hotel is being developed on a site spanning 492,588 square feet and will feature 177 rooms. In the first phase, the project will include restaurants, a swimming pool, spa facilities, and a casino. The property is also expected to offer food and beverage services, conference and banquet halls, wellness facilities, and other hospitality amenities.
The project remains in its early stages, and the rating report notes that risks persist regarding the company’s ability to complete construction within the revised budget and timeline.
For hotel management, the company has signed an agreement with Hyatt International Southwest Asia Limited, a subsidiary of Hyatt Hotels Corporation. The hotel will operate under the Hyatt Regency brand, which manages luxury hotels across global markets.
The company has obtained a credit rating for total borrowing facilities worth Rs 4.62 billion, including Rs 4.5 billion in long-term loans and Rs 120 million in short-term borrowing.
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