KATHMANDU, Aug 17: Bhairahawa's renowned five-star resort, the Tiger Palace Resort, facing closure due to multiple factors including the COVID-19 pandemic and operational controversies, has found a new lease of life. The reins of this ailing hotel have been taken up by a group of non-resident Nepalis, marking a significant shift in ownership and direction.
The acquisition was taken by a team led by Buddhi Sagar Subedi, former president of the Non-Resident Nepali Association (NRNA), USA, and Deepak Dutta Gautam, former president of NRNA, Canada. This strategic acquisition aims to revitalize the resort, which was originally infused with approximately Rs 5 billion in foreign investment. The decision to sell was prompted by persistent losses attributed to the pandemic's impact and internal conflicts among stakeholders.
The Australian firm Silver Heritage Group Limited, the original foreign investor, has divested its shares to Himalayan Tiger Investment Inc., an investment entity helmed by Subedi, Gautam, and other NRNs. This move was initiated to settle outstanding liabilities, including loans amounting to about Rs 2.5 billion owed to Nepali banks, as well as tax obligations to the government. The transaction was valued at 15 million USD (approximately Rs 2 billion).
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Addressing a press meeting, Tiger Palace Chairman Buddhi Sagar Subedi emphasized the commitment to infuse approximately Rs 4 billion into the resort's operations, inclusive of share acquisitions. "Our intent was to rescue a struggling enterprise and fulfill our duty to our homeland," stated Chairman Subedi. He underscored the conscious decision to invest in the resort, emphasizing repatriation of overseas earnings to Nepal.
Deepak Dutta Gautam, a board member of Tiger Palace, expressed optimism about the revival's impact on employment, with over 1,000 Nepali citizens poised to benefit from the resort and casino's reopening. Gautam underscored the broader significance, stating, "The decline of significant tourism ventures like Tiger Resort is detrimental to the nation, the tourism sector, and investors. We aspire to enhance Nepal's tourism industry through our resort contributions."
The endeavor's architects believe that its success will serve as a testament to potential foreign investors and non-resident Nepalis, fostering an environment conducive to direct foreign investment. According to their projections, the reinvigorated resort will contribute to the economy by generating employment opportunities, increasing revenue, boosting business activity, and the growth of the tourism sector.
The resort had faced operational challenges stemming from the pandemic and internal discord, leading to partial closure and substantial financial losses.
