The famous Annapurna Hotel in Kathmandu will reopen

The renowned Annapurna Hotel on Durbar Marg has announced intentions for a relaunch—in a new guise. The hotel closed its doors in December 2020 due to a significant income loss after the coronavirus wiped off the tourism business.

On Thursday, Annapurna Square Pvt Ltd signed a management agreement to redevelop and run a new five-star hotel at the location of Hotel Annapurna with ITC Hotels, a well-known name in luxury hospitality in India.

The business claims that the proposed Rs. 8 billion facility, with its 363 rooms and 30 service flats, will be Nepal's largest hotel. There are two towers that will be 24 and 15 floors high. The hotel will feature an entertainment area, a shopping arcade, and four meeting rooms.

The managing director of Bhat-Bhateni Supermarket and chairman of Annapurna Square Pvt Ltd, Min Bahadur Gurung, stated, "We have planned to launch the hotel on April 13, 2028, the Nepali New Year."

Hotel Del' Annapurna Pvt Ltd will own the remaining portion in the project, leaving Annapurna Square Pvt Ltd with an 85% stake. 1,500 people will be employed as a result of the initiative.

We are thrilled to be working on the renovation of Hotel Annapurna alongside Annapurna Square Pvt Ltd. The executive director of Hotel Del' Annapurna Pvt Ltd, Shreejana Rana, stated, "Our theme, The Annapurna: Reviving from a Hotel to an Iconic Destination, reflects our commitment to blending heritage, luxury, and modern innovation."

"In fact, our intention to build the biggest hotel in Nepal will enhance our reputation as one of Kathmandu's most iconic destinations and usher in a revolutionary chapter for the country's hospitality industry."

The now-closed 149-room hotel, which debuted as the Hotel de l'Annapurna in 1965, is situated in the center of Kathmandu on 44 ropanis of land, or 22,385 square meters. Following the hotel's closure, the location was used as a parking lot. Three underground parking spaces will be built at the hotel, according to company executives. This is a good business move for the space-constrained Kathmandu.

According to Rana, "the reimagined property will set new benchmarks for luxury hospitality in Nepal while preserving the rich cultural heritage of the iconic hotel."

According to Rana, there have been a lot of changes in Nepal's hospitality sector, but they still expect growth.

In 2023, Nepal's tourist sector made a comeback, surpassing the coveted one million visitors annually. This is a significant turning point for the industry as the nation seeks to recover from the damage caused by the Covid-19 outbreak.

Nonetheless, experts claim that the possibility of progress has been hampered by bus accidents, plane crashes, and natural calamities.

The annual World Travel and Tourism Council research report states that 1.19 million employment were directly and indirectly supported by Nepal's tourism industry last year, which brought in Rs327.9 billion ($2.5 billion) in income. According to the estimate, 1.22 million employment would be created in Nepal by 2024.

The percentage of jobs created by the tourism industry is 15.2 percent.

The London-based organization stated that, prior to the commencement of the Covid epidemic in 2019, travel and tourism's overall contribution to the nation's gross domestic product (GDP) was 6.7%, or Rs358.9 billion, or $2.7 billion, last year.

A multitude of upscale hotels have opened since COVID-19. Gurung stated that he chose to enter the hotel sector.

Gurung declared, "Together, we will establish new benchmarks in opulent hospitality and establish Kathmandu as a world-class destination, drawing discriminating tourists from all over the world."

Nepal offers enormous tourism potential. India is a major market for us. However, we haven't even touched a small portion of its expanding middle class," he continued. "We don't have to travel far to bring visitors. They are in India, not far from us.

India has been the main source of tourists for Nepal; 319,936 arrivals from the southern neighbor were recorded last year.

Gurung was a co-founder of the Bhat-Bhateni Supermarket, which is the most well-known and first retail chain in the nation. He claimed that because the tourist sector has such enormous job-creation potential, he got into it to benefit the nation.

Gurung transformed a menial grocery store into a strong retail enterprise in 1984 with his imaginative leadership and entrepreneurial zeal. Gurung's resolve to satisfy clients and uphold strict quality standards serves as the foundation of his business strategy.

Gurung remarked, "I hope to have the same success in the hospitality sector as well."

ITC Hotels, a well-known brand in India's luxury hospitality, has been brought on board by Annapurna Square Pvt Ltd to oversee the hotel. This is the second foreign project that ITC Hotels has undertaken in Nepal, following Fortune Resort & Wellness Spa in Bhaktapur.

Consistent with the ITC Hotel's dedication to sustainable development and "responsible luxury," the new hotel will have eco-friendly features such as locally sourced materials and energy-efficient technologies.

According to Rana, the project is being tackled as a historically inspired restoration rather than a redesign, refining its presence for a new period.

Moreover, the project will place a high priority on assisting Nepal's economy by procuring goods from the country and hiring local craftspeople. This idea is to be realized by Morphogenesis, India, one of the leading architecture firms in the region.

Known for its cutting-edge designs and environmentally conscious methods, Morphogenesis is attempting to bring Annapurna Square to life by fusing Kathmandu's rich cultural heritage with the pinnacle of modern architecture.

"We are delighted to work with Annapurna Square to manage this iconic property," stated Anil Chadha, CEO of ITC Hotels. ITC Hotels is dedicated to providing outstanding guest experiences with an emphasis on cultural preservation and sustainability.

Nepal's history has been greatly influenced by Hotel Annapurna, and we are thrilled to contribute to enhancing its legacy. The redeveloped property will be anchored in the local ethos and heritage of the area, thanks to our planet-positive attitude.