Koshi Province Emerging as Hospitality Hub with Surge in Hotel Investments

Koshi Province is witnessing a significant surge in investment within its hotel and tourism sector, with numerous high-end projects either recently launched or under construction.

The inauguration of the internationally-branded Ramada Hotel in Itahari, Sunsari, has injected new enthusiasm into the local hospitality industry. Built with domestic investment, the hotel is part of the global Wyndham Hotels & Resorts chain. Management officials state that the hotel features over 80 modern rooms, including Deluxe, Executive, and Suite categories, along with a banquet hall, restaurant, fitness center, spa, and bar. The operation has so far created direct employment for approximately 80 people.

In Biratnagar, the Lemon Tree Premier Hotel is in its final stages of preparation and is targeted to open in April. Constructed at a cost of around Rs 2 billion through a joint investment by young entrepreneurs, the eight-story hotel will house about 80 rooms. Facilities will include a Presidential Suite, standard Suites, Deluxe rooms, and a 5,000-square-foot banquet hall capable of accommodating up to 2,000 guests. The hotel will also feature a rooftop swimming pool, spa, sauna, bar, and restaurants serving international cuisine. Its management will be overseen by the international Lemon Tree Hotel chain.

Also in Biratnagar, industrialist Moti Dugad's Century Hotel is nearing completion. Simultaneously, senior industrialist Rajendra Raut is constructing another five-star hotel near the airport road area with an estimated investment of Rs 2 billion.

Further east in Jhapa, entrepreneur Durga Prasai is developing the Stern Grand Hotel. These new projects add to the province's existing luxury inventory, which includes the Mechi Crown Hotel and Kingsbury Hotel in Birtamod, Jhapa, and the Soltee Westend Hotel in Itahari, representing an established investment of over Rs 500 million.

Industry experts estimate that constructing a five-star hotel typically requires an investment ranging from Rs 1.5 billion to Rs 2.5 billion. Based on this, the new hotels currently under construction or preparing to launch represent an additional total investment of approximately Rs 13 billion in Koshi Province.

According to Bhavish Shrestha, Senior Vice President of the Hotel Association Nepal, Koshi Province, investment in the hotel and tourism sector has been steadily increasing. He attributes this to a resurgence in the tourism industry following the COVID-19 pandemic, which has encouraged investors. He noted that clear and effective government policies could further amplify the sector's contribution to the national economy.

The optimism is fueled by a steady influx of Indian tourists through the Jogbani, Bheemnagar, Kakarbhitta, and Pashupatinagar border crossings. It is estimated that an average of over 500 Indian tourists visit hotels and tourist destinations in the region daily.

While Biratnagar, the provincial capital, does not yet have an officially operational five-star hotel, it currently houses around two dozen three and four-star establishments, including Ratna, Big, Swagat, Asiatie, Stern Star, and Harrison.

Business leaders anticipate that in the coming years, more international-standard hotels will emerge across various cities in Koshi Province. This expansion of hospitality infrastructure is expected to establish Eastern Nepal as a significant destination for both tourism and business conferences.