Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: City Hotel Limited, the operator of Nepal’s first Hyatt Centric–branded property, has reported a notable rise in its net worth per share in the first quarter of Fiscal Year 2082/83, reflecting improving financial health and aggressive debt-reduction plans.
According to the unaudited quarterly financial report published on Sunday, the company’s net worth per share increased by Rs 4.10, reaching Rs 84.93 during the period from Shrawan to Asoj 2082. This marks a significant rise from Rs 80.83 recorded in the previous quarter (Baisakh–Ashadh 2082).
Debt Reduction Through Rights Issue Drives Improvement
The company said the increase in net worth per share follows the successful issuance of rights shares, which allowed City Hotel to mobilize fresh capital for repayment of bank loans.
Directors said the infusion of rights-share capital will significantly lower the company’s debt servicing costs starting from the second quarter. City Hotel had paid Rs 26.43 crore in interest in the last fiscal year.With the new capital, the company expects a 30–35% reduction in annual interest expenses, easing financial pressure and improving profitability.
Hotel Strengthens Operations and Expands Revenue Streams
City Hotel’s report highlights improving operational performance, new business initiatives, and financial restructuring efforts that have helped stabilize revenue and cash flow.
The hotel has outlined 11 strategic priorities for sustained growth and stronger returns to shareholders, including:
Upgrading banquet and catering services to attract more corporate events and private functions
Increasing event-based business from NGOs, INGOs and embassies
Strengthening focus on domestic market opportunities
Conducting periodic performance reviews to deliver higher shareholder value
Collaborating with national and international sports federations and clubs for future event hosting
Casino, Gym, and Spa Set to Boost High-Margin Revenues
A key strategic move includes the launch of a new casino, expected to begin operations within the next two months. Management believes the casino will become a high-margin revenue generator, enhancing City Hotel’s profitability and positioning it strongly in Kathmandu’s growing hospitality market.
The hotel is also preparing to open a new gym and spa, aimed at attracting high-end clientele and expanding premium hospitality services within the property.
Unused Spaces to Be Leased for Steady Long-Term Income
To diversify income, City Hotel plans to lease out unused or underutilized areas within the hotel premises. This will ensure long-term rental income, reduce operational pressure, and support stable cash flow for the company.
With strengthened balance sheets, new service expansions, and a sharper focus on revenue diversification, City Hotel appears to be positioning itself for sustained growth in Nepal’s competitive hotel and hospitality sector.
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