Services halted at 3 five-star hotels, 2 operate without renewed licenses

Services at three of Nepal’s five-star hotels have been suspended, according to the Department of Tourism. The affected establishments are The Fulbari Limited in Pokhara, Hotel Shangri-La in Lazimpat, Kathmandu, and Hotel de l’Annapurna in Durbar Marg, Kathmandu. Department spokesperson Kali Bahadur Bhujel stated that internal issues led to the closure of these hotels.

Among the three, Hotel Annapurna retains its legal status as its license renewal period is still valid. The site of the former Annapurna Hotel is undergoing a transformation into a 25-story Annapurna Square Hotel with an investment of Rs 6 billion. The project involves collaboration between Bhattabhateni, Little Angels, and the Annapurna Group, with the new hotel expected to open by 2085 BS.

In contrast, The Fulbari and Hotel Shangri-La no longer hold legal recognition as five-star hotels due to their suspension. Bhujel explained that many hotels have struggled to recover from the impact of the COVID-19 pandemic, with some still unable to resume operations.

Additionally, three operational five-star hotels—Hotel Everest in New Baneshwor, Hotel Yak and Yeti in Durbar Marg, and Hotel Radisson (Oriental) in Lazimpat—have not renewed their licenses. Hotels must be registered with government authorities to operate, but their star classification lacks legal validity unless approved by the Department of Tourism.

The Department clarified that service-suspended or non-renewed hotels cannot be legally recognised as five-star establishments. This reduces the number of officially recognised five-star hotels in Nepal to 17.

Legal and financial challenges

License renewal for hotels is required every five years, with outstanding liabilities—such as casino dues—addressed during the process. These obligations have caused delays in renewals for some hotels. For example, Hotel Yak and Yeti was classified as a five-star hotel in March 2004, and Hotel Everest received its classification in January 1986.

The Department has begun categorising hotels into higher classifications beyond five stars. For instance, Soltee Hotel in Tahachal has been elevated to the “Five-Star Deluxe” category, along with Mechi Crown Hotel in Jhapa.

Luxury boutique hotels, such as Dwarika’s Kathmandu and Basera Boutique Hotel, are classified under separate categories like Luxury, Deluxe, and Heritage.

New additions to the 5-star portfolio

According to the latest data, the most recently classified five-star hotel is Hotel Forest Inn Limited in Budhanilkantha, which received its designation in October 2023. The second-newest addition is Budhanilkantha Heritage Lemon Tree Premier, which achieved five-star status in May 2023.

This evolving classification system aims to reflect the diversity and luxury offerings in Nepal’s hospitality sector.

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