First five-star hotel under construction in Sudurpaschim

KATHMANDU: Holiday Inn by IHG has officially entered into a hotel management agreement with Club Chaulani Limited, marking a major milestone for international hospitality development in Nepal’s Sudurpaschim Province.

The agreement signing ceremony was successfully held on Monday (Poush 8) at Holiday Inn Resort, Budhanilkantha, Kathmandu, in the presence of Nepal Rastra Bank Governor Dr. Bishwo Paudel, who attended as the chief guest.

The agreement was signed by Dr. Rajendra K.C., Chair of Club Chaulani Limited, and Sudip Jain, Managing Director – South West Asia, IHG Hotels & Resorts.

During the press meet, CA Deepak Pandey responded to queries from media representatives. On the same occasion, Garima Capital Limited was formally appointed as the Issue and Sales Manager for the project’s Initial Public Offering (IPO).

First International Five-Star Hotel in Sudurpaschim

The upcoming Holiday Inn by IHG, Dhangadhi will be the first five-star hotel under an international hotel chain in Sudurpaschim Province, according to the company.

The hotel will feature 115 modern guest rooms, including five premium suites, designed to meet international hospitality standards.

Key facilities will include:

• A state-of-the-art casino spread over approximately 18,500 square feet

• A grand banquet hall with a capacity of up to 700 guests

• Rooftop swimming pool

• Multi-cuisine restaurants

• A fully equipped modern fitness center

• Multiple meeting and conference halls

• Exclusive private dining facilities

Investment, Employment and Timeline

The total project investment stands at Rs. 2.20 billion, of which around 65 percent (Rs. 1.43 billion) will be financed through bank loans, while the remaining 35 percent (Rs. 770 million) will be contributed as promoter equity.

In terms of employment generation, the casino is expected to employ over 600 staff, while the hotel will create more than 200 jobs. The company informed that around 40 percent of the construction work has already been completed, and the IPO is expected to be issued within the next one to one-and-a-half years through Garima Capital.

The hotel is projected to commence operations in early 2084 BS.

Boost to Regional Tourism and Economy

Dhangadhi, known for its natural beauty, religious and cultural heritage, biodiversity, and hospitality, is strategically located near major cities of Uttarakhand and Uttar Pradesh, India, making it a potential hub for Indian tourists.

The city is emerging as the commercial center of Sudurpaschim’s seven districts and lies about eight kilometers from Dhangadhi Airport, close to Mahendranagar.

The company stated that the Holiday Inn Dhangadhi project represents the beginning of a new era of branded international hospitality in Sudurpaschim Province, contributing to quality accommodation, professional tourism, local employment generation, and overall regional economic growth.

The project is expected to set a new benchmark for international-standard hospitality and investment in western Nepal, significantly supporting tourism development, business expansion, and long-term economic progress in the region.