Five-Star Hotel Forest Inn Launches IPO, Strengthening Tourism Sector Presence on NEPSE

The presence of the hotel and tourism sector on the Nepal Stock Exchange (NEPSE) is set to become stronger with the entry of another five-star hotel company, Hotel Forest Inn Limited, which has launched its Initial Public Offering (IPO). The company has opened the first phase of its IPO exclusively for Nepali citizens working abroad from Magh 4.

Hotel Forest Inn Limited has received approval from the Securities Board of Nepal to issue 40 million shares worth NPR 4 billion at a face value of NPR 100 per share. Of the total issued shares, 10 percent (400,000 shares) have been allocated for Nepalis employed in foreign countries.

Eligible applicants can apply for a minimum of 10 shares and a maximum of 200,000 shares. The IPO will close as early as Magh 8 and no later than Magh 18, depending on subscription levels. Applications can be submitted through all ASBA-approved banks and financial institutions, their designated branches, and the Mero Share online platform.
The issue and sales manager for the IPO is NIC Asia Capital Limited.

After completing the first phase for foreign-employed Nepalis, the company plans to issue shares to the general public in the second phase.

Currently, Nepal Stock Exchange has seven companies listed under the hotel and tourism group. Among them, four operate five-star hotels, while the remaining companies are associated with resorts and cable car businesses. Listed companies in this group include Soaltee Hotel, Taragaon Regency Hotel (Hyatt Regency), Oriental Hotels (Hotel Radisson), and City Hotel. Although the number of companies in this sector is limited, investor interest in tourism-related stocks remains consistently high.

Five-Star Hotel Project Worth NPR 3.57 Billion

Hotel Forest Inn Limited is promoted by former Minister for Energy, Water Resources and Irrigation Deepak Khadka. The total investment in the five-star hotel project amounts to NPR 3.57 billion.

Of the total investment, NPR 2.12 billion has been financed through bank loans, NPR 1.02 billion through promoters’ equity, while the remaining amount is planned to be raised through the IPO.

The hotel features 105 rooms and offers a range of premium facilities including food and beverage services, conference and banquet halls, spa facilities, and other modern amenities. The property is located in Budhanilkantha, Kathmandu, approximately 11 kilometers from Tribhuvan International Airport. Budhanilkantha is regarded as an important religious and tourist destination.

The hotel is managed by the globally renowned American hospitality chain InterContinental Hotels Group under its midscale international brand Holiday Inn. Currently, there are 1,234 Holiday Inn hotels in operation worldwide, with 287 additional hotels in the development pipeline.

Active in Nepal’s tourism industry since 1998, promoter Deepak Khadka has invested in travel and trekking companies as well as various other sectors. He has also invested in three hydropower projects located in Taplejung and Rasuwa districts.

Hotel Forest Inn Limited was established in 2010 and was converted into a public limited company in 2023 as part of its IPO preparation. The hotel has been in commercial operation since Shrawan last year.