Despite bus and airline catastrophes, a decline in banquet demand, Nepal's hotel revenues are rising.

Due to the restricted availability of auspicious dates for several ceremonies and rites, hoteliers reported a decline in demand for banquets, one of the main activities that generates money, in the most recent fiscal year.

The demand for hotels was primarily driven by events in prior years, and the guests who attended these events tended to spend more on hotel food and beverages, setting records for income for luxury hotels.

The springtime helped most upscale hotels recover from a decline in banquet demand by helping them fill their room nights, which ultimately increased their revenues and profits. Following three earlier-than-anticipated spring months (March through May), the monsoon arrived with unprecedented levels of precipitation and devastation.
Nowadays, instead of "party palaces," people would rather have their weddings, boyhood initiation rituals (bratabandha), and other religious rites held in opulent hotels.

"The auspicious dates for many ceremonies and rituals were limited last fiscal year, which affected hotel revenue," stated Binayak Shah, president of the Hotel Association Nepal, the leading organization representing the Nepalese hotel business.

There is just one lucky day for marriage in Mangsir, the important wedding month, which is November 23 this year as well.

"Banquets are not available on that specific date."

Spring arrivals saved most hotels listed on the Nepal Stock Exchange, which reported a decline in banquet business.
According to the reservations hotels had received, "there would have been a tremendous growth in tourist arrivals had it not been for the plane and bus crashes," stated Shah.

All the hoteliers were enthusiastic before the monsoon.

As to the Soaltee Hotel Limited's fourth-quarter corporate analysis report released by the Nepal Stock Exchange, the hotel's profit margin was the highest among all the listed hotels. In the most recent fiscal year, the hotel reported a net profit of Rs601.07 million, an increase of 8.30 percent over the previous one.

The report states that during the review period, Soaltee's total income was Rs2.49 billion.

Soaltee stated that a significant increase in tourism occurred during the fourth quarter (mid-April to mid-July), which contributed to the company's growth.

The Nepal Tourism Board reports that 111,376 travelers arrived in Nepal via flight in April. In a similar vein, 90,213 and 76,736 visitors visited the nation in May and June, respectively. Over the course of three months, 342,924 tourists visited the area.

"April is the peak month for trekking and expeditions, and it saw a phenomenal growth that nobody could have predicted," Shah added. "There was excitement among all for the future."

However, problems soon followed: an unprecedented number of collisions and accidents occurred one after another, severely harming Nepal's tourism industry. "Our estimates show that over 25% of the cancellations occurred following the crashes and bus accidents," stated Shah.

The Taragaon Regency Hotel Limited also commemorated the arrival of spring.

In comparison to the same period in the previous fiscal year, the hotel's net profit for the most recent fiscal year was Rs518.26 million, a 28.17 percent increase. During the review period, its income increased by 28.17 percent to Rs1.73 billion.

The company, which operates the opulent five-star Hyatt Regency Kathmandu, attributed its improved occupancy in part to the rise in international visitors in the spring in its financial statement.

According to the hotel's analysis, the political climate in the nation has improved.

The hotel did note that there are still difficulties because the number of five-star establishments has increased competitiveness in the hospitality sector. "We have managed to stay afloat in the cutthroat industry. We took the decision to use the underutilized land and build infrastructure in anticipation of more competition.

According to Taragaon, the country is experiencing a shortage of trained labor since individuals are emigrating to other countries. The hotel claimed that in order to accommodate the tastes of the current age, they must deal with legal challenges when planning events like concerts, festivals, and entertainment performances.

The hotel claimed that because the government has raised the luxury tax, it would deter domestic travel. A two percent "luxury tax" on services rendered by hotels and resorts with five stars or more was included in the budget for the preceding fiscal year.

However, Oriental Hotels Limited, the company that runs Kathmandu's five-star Radisson Hotel, had a slowdown in its net profit during the review period, coming in at Rs122.30 million. In the preceding fiscal year, the hotel's net profit was Rs160.92 million.

The hotel reported that during the review period, its revenue increased slightly to Rs1.21 billion. The previous fiscal year's poor banquet sales were the cause of the decline in its net profit.

"In the previous fiscal year, there were fewer auspicious dates for various occasions, such as ceremonies and rituals, which resulted in a decreased demand for banquets," the hotel stated.

Nonetheless, the hotel's report stated that higher visitor numbers in the spring contributed to higher occupancy rates.

The hotel attributed the decline in earnings to growing food inflation and stagnating room rates.

In its analysis, the hotel stated that demand and visitor arrivals could be impacted by geopolitical threats including war and military-related tensions in different parts of the world. Hoteliers claim that the war between Russia and Ukraine and the Israel-Hamas conflict could further depress guest arrivals.

In the most recent fiscal year, City Hotel Limited reported a net loss of Rs204.73 million.

Despite the hotel's overall earnings increased by a healthy 14.25 percent to Rs582. 39 million in the previous fiscal year, there has been a net loss.

The Hyatt Place is owned by City Hotel, which opened for business on November 15, 2021.

The hotel announced that starting in the first quarter of the upcoming fiscal year, it will be upgrading to Hyatt Centric. With its expanded banquet capacity of 600 guests from 400, it anticipates a rise in business.

With a net profit of Rs223.38 million, Chandragiri Hills Limited has more than doubled its previous net profit. In Kathmandu, the company runs a cable car.

Hoteliers report strong growth in the high-end hotel market, while hotels with fewer than three stars have been struggling since the several international fatalities from bus and airplane tragedies.