NHH is a member of MS Group, one of the leading business conglomerates of Nepal.
The hotel will be operated by international chain Marriott under its Fairfield brand. IFC believes that the investment will increase Nepal's capacity in the mid-market hotel segment, create jobs, and promote energy-efficient hotel design.In addition to its own investment, IFC will mobilize $3 million from FMO, the Netherlands-based development bank. These investments will help build skills of those employed in the sector and contribute to the development of local supply chains. IFC will also help NHH to adopt green building design and construction principles to implement energy and water-efficiency measures.
The hotel will be built with a total investment of $12 million.
"This deal, amidst the recent earthquake, reaffirms that the Nepali private sector, IFC, and FMO are committed to economic prosperity in Nepal. The 110-room Fairfield Kathmandu, the first internationally-branded, professionally-managed mid-market hotel in Nepal, will stimulate tourism and support the economy. The green building design will serve as a model for replication across the industry," said Gaurav Agarwal, managing director of NHH.
Agarwal said they have already completed the structural work, the finishing work is 20 percent complete and for the remaining finishing work they need skilled manpower, which is currently no available in Nepal. Likewise, electrical wiring and plumbing work is 80 percent complete, he said.
"IFC remains committed to supporting Nepal as it rebuilds its tourism industry following the devastating earthquake in April 25. Investments that support vital industries like tourism, will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to traveler needs," said Kyle F. Kelhofer, IFC Country Manager for Bangladesh, Nepal, and Bhutan in the statement.
"Even though, the 10-story hotel has been rated as 3-star by the government, our services will be on par with 4 and 5-star hotels in Nepal," said Agarwal. The hotel which had earlier planned to begin operation in October has postponed it for early 2016 due to earthquake.
The MS Group is also constructing a 5-star hotel in Naxal, Kathmandu for which it will invest Rs 350 million.
The tourism sector in Nepal accounts for over 2 percent of the country's GDP, 5 percent of foreign exchange earnings, and employs approximately half a million people.
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