Hotel and Tourism Sector Under Pressure: 5 Out of 7 Companies in Loss

According to the second-quarter financial reports of the current fiscal year 2082/83, most hotel and tourism companies listed on the Nepal Stock Exchange (NEPSE) are operating at a loss. Out of seven listed companies in this sector, five have recorded losses, while only two have remained profitable.

As of mid-January, only Soaltee Hotel and Kalinchok Darshan have managed to post profits. Other companies, including Bandipur Cable Car, Oriental Hotel, Chandragiri Hills, City Hotel, and Taragaon Regency, remain in deficit. Soaltee Hotel recorded the highest net profit of Rs 347.5 million, marking a 15.19 percent increase compared to last year. Kalinchok Darshan earned Rs 11.9 million in profit, reflecting a significant growth of 152.68 percent.

Recently listed Bandipur Cable Car reported a loss of Rs 7.49 million. City Hotel limited its loss to Rs 100.9 million, while Taragaon Regency, affected by the Gen Z movement, suffered a loss of Rs 90.7 million. Chandragiri Hills posted a loss of Rs 47 million, and Oriental Hotel recorded a loss of Rs 27.4 million.

In terms of revenue, Soaltee Hotel continues to lead the sector, earning Rs 1.45 billion in six months, up by 19.69 percent year-on-year. Bandipur Cable Car and Kalinchok Darshan also improved their revenues. However, Taragaon Regency’s income declined sharply by 75.26 percent to Rs 171.9 million. Chandragiri, City Hotel, and Oriental Hotel also experienced revenue declines.

Overall, the hotel and tourism sector remains under pressure. Delayed tourism recovery, infrastructure damage, and weak market conditions have negatively affected the performance of most companies.