Sarovar Hotels has signed a new hotel in Nepal, the Royal Tulip Kathmandu, which is set to be the largest hotel in the country in terms of room inventory with 304 keys. The property is expected to open later this year and will offer 22,000 square feet of event space, making it a key destination for meetings, incentives, conferences, and exhibitions (MICE) in Nepal. Currently, The Soaltee Kathmandu is the largest hotel in Nepal with 282 keys, a title that Sarovar expects to hold until 2028 when the Annapurna Hotel reopens under a new management contract with ITC Hotels, boasting 363 keys.
Nepal is a popular destination for religious tourism, with India being its largest source market. In 2023, the birthplace of Gautam Buddha, Lumbini, received close to 1 million tourists, with India accounting for over 266,000 visitors, making up close to 27% of the total tourist flow. The country has been focused on ramping up its tourism efforts, with the aim of welcoming 1.6 million tourists in fiscal 2025. There is a specific emphasis on promoting Nepal as a wedding destination, with efforts being made to attract foreign tourists for weddings.
Royal Tulip Kathmandu will be Sarovar’s second property in Nepal, following the Sarovar Portico Birgunj that opened in 2021. The hospitality chain is looking to establish a stronger presence in Nepal, with plans for more hotel openings in the country in the future. Sarovar believes that Nepal’s tourism sector is poised for growth, with improving infrastructure and increasing tourist numbers indicating a positive outlook for the industry. The chain is also focusing on channeling business from India into Nepal, leveraging its footprint in both countries.
Nepal is seeing growth in tourism, with over 720,000 tourists visiting the country in the first eight months of 2024, up from 601,000 in 2023. India accounts for over 30% of foreign tourist arrivals, showing signs of recovery to pre-pandemic levels. Sarovar Hotels is currently operating four properties in Nepal, Zambia, and Kenya, and is looking to expand further in Africa. The hospitality chain plans to open more hotels in Africa and is also exploring opportunities in the Middle East and the Indian subcontinent as part of its international expansion strategy.
Ajay K. Bakaya, chairman of Sarovar Hotels, highlighted the company’s focus on destinations where they can add value, such as Nepal and Africa. The hotel chain is optimistic about Nepal’s growth potential and is banking on India’s economic and financial strength to support its international expansion plans. Sarovar is set to open two more hotels in Africa, doubling its room inventory in the continent to 500. While expanding overseas comes with challenges, including building trust in new markets, Sarovar is confident in its ability to attract business from India and other key markets served by the chain.
