Kathmandu: The five-star Holiday Inn Resort Budhanilkantha, built under the investment of Nepali Congress MP and Energy Minister Deepak Khadka, has reported a turnover of Rs 1.36 billion within its first year of operation. Despite the impressive business volume, the company has yet to register a profit, remaining in negative earnings territory.
The resort, located in Budhanilkantha-1, Muhanpokhari, was jointly inaugurated by Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba on 9 October 2024. It began commercial operations in July 2024.
Originally established in 2010 under the name Hotel Forest Inn, the company now operates under the globally recognized Holiday Inn Resort Budhanilkantha brand. Spread over 1.24 hectares (20 ropanis), the luxury resort was built with an investment of Rs 3.57 billion. The facility boasts 104 rooms and a wide range of amenities including food and beverage services, a swimming pool, conference halls, banquet spaces, spa, and more.
The company has also undergone credit rating for a total loan of Rs 2.16 billion — Rs 2.11 billion in long-term debt and Rs 50 million in short-term financing.
Despite its world-class offerings and brand reputation, the hotel operated at an average occupancy rate of just 26 percent during the last fiscal year. According to company records, 32 percent of the ownership is held by Binita Thapa Khadka as of July 2025.
The resort operates under a franchise agreement with the InterContinental Hotels Group (IHG), a globally recognized American hotel chain that manages the Holiday Inn Hotels & Resorts brand. Holiday Inn currently operates in over 100 countries worldwide.
Industry insiders suggest that the hotel’s current operating loss could be attributed to high capital investment, initial operating expenses, and a modest occupancy rate — common challenges faced by new high-end establishments.
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