Nepal's luxury hotels basked in all-time high profits as incessant banquets and other events more than compensated for lacklustre tourism growth.

 

Profit levels in the last fiscal year surpassed pre-pandemic figures as the end of social restrictions unleashed pent-up demand for parties and conventions, hoteliers said.

 

According to insiders, demand from holidaymakers swelled, but they were careful about spending, and it was the strong growth in banquets and other celebrations that really made the five-star hotels shine.

 

The Soaltee Hotel posted an all-time high net profit of Rs545 million in the last fiscal year ended mid-July, according to its fourth quarter company analysis report published by the Nepal Stock Exchange.

 

The report shows that the Soaltee's net profit soared by 83.40 percent year-on-year.

 

In terms of revenue, the hotel earned a record Rs2.24 billion in the last fiscal year, up 64.28 percent from the same period in the previous fiscal year.

 

“Obviously, events pushed up our sales since Covid social restrictions were eased,” said Sudarshan Chapagain, vice-president of Soaltee Hotel Limited. “We adopted operational efficiencies and focused on revenue too.”

 

He said that the Soaltee saw 70 percent occupancies throughout the year. “Bookings for the upcoming tourist season are also encouraging.”

 

The Soaltee has opened new properties in Itahari in eastern Nepal and Nepalgunj in western Nepal, including in Chitwan. “All of them are doing well,” said Chapagain.

 

The hotel has planned to add at least three new properties in Pokhara, Nagarkot and Simara. “We will make the announcement of the new properties in September,’ said Chapagain.

 

Foreign tourist arrivals increased significantly to 862,992 in the last fiscal year from 374,147 in the previous fiscal year, according to Nepal’s central bank report.

 

The income from tourists jumped by 89.6 percent to Rs61.52 billion in the review year, compared to Rs32.45 billion in the previous year.