Aviation Authority bars Annapurna Square’s 25-storey hotel plan over safety rules


Kathmandu: Annapurna Square, a commercial complex under construction in Durbar Marg that includes a five-star hotel, will not be allowed to build its planned 25-storey structure.

Civil Aviation Authority of Nepal (CAAN) has blocked the proposed height, which was intended to house a 330-room luxury hotel and business complex.

According to Kathmandu Metropolitan City regulations, designs for tall buildings require CAAN’s approval to ensure they comply with aviation safety standards. CAAN’s assessment, based on the Obstacle Limitation Surface (OLS) guideline, has set a limit of 19 storeys for buildings within 10 kilometers of an airport.

“The OLS rules prohibit structures that could pose challenges to air navigation,” CAAN spokesperson Gyanendra Bhul told Clickmandu.

The OLS standard applies not just to Annapurna Square but to all buildings near the airport. It allows authorities to order demolition of non-compliant structures.

Under OLS rules, aircraft are at least 500 metres above ground during takeoff and landing, meaning no physical structure should exceed the specified height restrictions.

The Annapurna Square project is a rebranding and redevelopment of the historic Hotel Annapurna, which for more than five decades was a landmark in Kathmandu.

The hotel’s majority stake was acquired by Min Bahadur Gurung, owner of Bhatbhateni Supermarket, and Umesh Shrestha, of Little Angels School’s fame. The new entity has already signed an agreement with India’s ITC Hotels to operate under its luxury “Welcome” brand.

Since the takeover, the old hotel has been completely demolished to make way for the new complex, which is scheduled to open by April 2028. The project, chaired by Gurung, is expected to involve an investment exceeding Rs 6 billion, making it Nepal’s largest hotel project to date.

The revamped facility will feature not only a luxury international hotel but also a business complex and 40 serviced apartments, positioning it as a major commercial and hospitality hub in the capital.