Five listed hotels slip into loss as Soaltee posts profit growth, Revenue nears Rs1.46 billion

KATHMANDU: Nepal’s listed hotel and tourism companies have posted mixed financial results in the first six months of the current fiscal year, with five firms reporting losses amid declining business performance, while Soaltee Hotel Limited emerged as the strongest performer, increasing both revenue and profit.

Financial disclosures of seven hotel and tourism companies listed on the Nepal Stock Exchange show that only Soaltee, Kalincchok Darshan Limited, and Bandipur Cable Car Limited recorded improved income positions during the review period from Shrawan to Poush. The remaining firms saw declining earnings and profitability pressures.

Five companies fall into losses

Among the hardest hit was Taragaon Regency Hotel Limited, which swung sharply into the red. The company reported a net loss of Rs90 million, compared to a profit of Rs186.7 million in the same period last year.

Its operating income collapsed by 75.26 percent to Rs171.9 million from Rs694.8 million a year earlier. The hotel has remained closed since vandalism and arson during the Gen-Z protest movement on Bhadra 24, severely affecting business operations.

Similarly, Chandragiri Hills Limited reported a loss of Rs47 million after its cable car service was forced to shut for nearly two months following damage during the same protest incidents. The company had posted a profit of Rs66.4 million in the corresponding period last fiscal year.

Losses also deepened at Oriental Hotel Limited, whose deficit expanded to Rs27.4 million from Rs12.7 million a year earlier, despite generating Rs484.6 million in operating income, down 6.05 percent year-on-year.

City Hotel Limited also remained under pressure, reporting a loss of Rs100.9 million as its revenue dipped 1.44 percent.

Although revenue has increased for Bandipur Cable Car, the company still remained in the red, but successfully reduced its loss to Rs7.4 million following business growth after its IPO issuance earlier this year.

Financial Status of Listed Hotel & Tourism Companies (First 6 Months) (Values in Thousands)

Lower interest rates ease financial burden

Industry analysts note that declining interest rates in Nepal have reduced financial costs for hotel operators, offering some relief despite weak occupancy levels in several destinations. Lower borrowing costs have helped stabilize balance sheets even as revenue pressures persist.

Soaltee stands out with higher revenue and profit

In contrast, Soaltee Hotel Limited posted the strongest results in the sector.

The company reported a net profit of Rs347.5 million in six months — a 12.95 percent increase compared to Rs307.7 million during the same period last year.

Revenue growth drove the improvement. The hotel’s total income rose 13.5 percent to Rs1.4597 billion, up from Rs1.286 billion a year earlier.

Soaltee Vice-Chairperson Sudarshan Chapagain said occupancy briefly dropped in September due to the Gen-Z protest movement but rebounded strongly afterward.

“Occupancy suddenly fell in September because of the protests. But tourist numbers started increasing from early October, and our business improved,” he said, adding that the hotel continues to maintain healthy occupancy levels.

Tourism arrival data also supports this recovery trend. Nepal received 78,711 foreign tourists by air in September, which jumped to 128,443 in October, helping boost hotel bookings across major destinations.

Kalincchok Darshan records profit surge

Kalincchok Darshan Limited also posted encouraging results, earning a profit of Rs11.9 million — a 152.7 percent increase compared to the same period last year — driven by improved visitor flow and higher operating income.

Financial Status of Listed Hotel & Tourism Companies (First 6 Months) (Values in Thousands for Financial Cost; Values in Rupees for EPS)

Sector outlook uncertain despite tourism recovery

Despite improving tourist arrivals and cheaper financing, the overall performance of Nepal’s listed hospitality sector suggests uneven recovery. Property-specific disruptions, protest-related shutdowns, and demand volatility continue to shape results, with only a handful of firms able to capitalize on the gradual tourism rebound.