Six New Five-Star Hotels Opened in Last Fiscal Year with a Surge in Tourist Arrivals

With Nepal’s tourism sector rebounding after the COVID-19 slump, the country has witnessed a surge in the opening of five-star hotels. Rising number of foreign tourists and increased economic activities have fueled investments in luxury hotels and the hospitality sector.

According to the Department of Tourism’s annual report for Fiscal Year 2024/25, six new five-star hotels came into operation during the review year—the highest number since the COVID-19 pandemic. Since Fiscal Year 2021/22, a total of 13 five-star hotels have been added, with two opening in 2021/22, one in 2022/23, four in 2023/24, and six in 2024/25.

Industry experts say growing economic activity and a steady rise in arrival of foreign tourists have encouraged investors to pour money into the hospitality sector.

Tourist arrivals, which had plummeted during the pandemic, have now bounced back to pre-pandemic levels. In fact, arrivals in June this year surpassed pre-COVID figures. Data from the Nepal Tourism Board (NTB) shows that Nepal welcomed 76,425 foreign tourists in June 2024, 2.1 percent higher than in June 2019, when 74,883 tourists had visited the country.

The Department’s report also shows a notable rise in investment not just in five-star hotels, but across the entire range of star-rated hotels and resorts. Over the past five years (since FY 2020/21), 114 star-rated hotels and resorts have been added. The highest number, 30, were registered in FY 2021/22, while the lowest, 16, were registered in FY 2020/21.

As of now, 335 star-rated hotels and resorts are registered with the Department of Tourism. Of them, 27 are five-star hotels, 40 four-star, 37 three-star, 49 two-star, and 44 one-star. In addition, there are 127 resorts, making them the largest category.

Bagmati Province accounts for the largest share with 239 star-rated hotels and resorts, followed by Gandaki with 44, Lumbini with 34, Koshi with 13, Madhesh with 12, Sudurpaschim with four, and Karnali with just one.