Hyatt Regency Kathmandu Places Staff on Leave With Basic Pay for One Year

Tara Gaon Regency Hotels (Hyatt Regency Kathmandu), one of the country’s oldest five-star hotels, has placed its employees on leave for one year with only the government-mandated basic salary. The hotel has remained closed since September 9 after protesters vandalized and burnt the hotel during the Gen Z movement.

The government has fixed the basic monthly wage at Rs 12,170 effective from July 2025, with an additional cost-of-living allowance bringing the minimum monthly remuneration to Rs 19,550.

The hotel management said it cannot resume operations without completing full repairs as the property suffered significant physical and financial damage. During the maintenance period, employees will receive only the basic salary of Rs 12,170, according to the company.

The management said it will provide the government-mandated basic wage for one year and contribute proportionately to the Social Security Fund to ensure job and income security for employees. The decision was made in line with agreements reached with employee representatives on various dates, it added.

A representative of the employees on leave said the hotel has placed 131 staff members on year-long leave under this arrangement. Hyatt Regency Kathmandu employs 148 permanent staff, of whom 131 lower-level employees have accepted the scheme. Senior staff, however, have not accepted the offer, the representative said.

The hotel management also confirmed that some employees have declined to accept the scheme. “Most employees have accepted the agreement and cooperated with the company, while some have yet to come on board,” the company stated in a response to a query by New Business Age. “If these employees do not agree, the company will have no option but to proceed with workforce reduction.”

The management added that once maintenance work is completed and the hotel resumes operations, employees who accepted the leave arrangement will be reinstated.

Located in Boudha, the hotel has been fully closed since the arson and vandalism that occurred during the Gen Z protests on September 9. Following the incident, the management announced a complete shutdown for repairs. Employees later staged protests accusing the hotel of unilaterally closing operations without a clear plan for staff management. With most employees now agreeing to the leave scheme, protest activities have stopped.