Hilton Hotel in Naxal Continues to Burn After Gen Z Protest Arson Attack
10th September 2025, Kathmandu
The Hilton Hotel in Naxal, one of Kathmandu’s newest and most prominent landmarks, remains engulfed in flames more than a day after it was allegedly set on fire during the ongoing Gen-Z protests.
Hilton Hotel Continues Burning
The fire, which erupted on Tuesday afternoon, has caused extensive damage to the building, which was a symbol of modern investment in Nepal’s hospitality sector. The incident, along with the destruction of the nearby Bhat-Bhateni Superstore, underscores the growing economic and social fallout of the youth-led movement.
Arson and the Targeting of Political Elite
The arson attack on the Hilton Hotel is not a random act of violence but a symbolic protest against what many see as entrenched corruption and nepotism in Nepal. The hotel was allegedly targeted due to its reported ties with the family of Sher Bahadur Deuba, President of the Nepali Congress. This act reflects the deep-seated frustration of the protesters, many of whom feel that political elites and their families have benefited from corruption and have not been held accountable. The “Gen-Z” movement, which was initially sparked by a ban on social media platforms, has since evolved into a broader protest against misgovernance, lack of employment opportunities, and digital freedom.
The destruction of the Hilton, a high-profile, private investment, is a grim reminder of how the protests have spiraled into violent confrontations. It also highlights the extreme risks faced by private businesses with perceived links to the political establishment. The fire at the Hilton and the burning of the Bhat-Bhateni Superstore in Naxal, one of the capital’s busiest retail centers, have resulted in substantial financial losses for investors, including Sahil Agrawal of Shankar Group. These incidents have not only destroyed valuable assets but have also disrupted daily business operations, impacting the livelihoods of countless workers and suppliers.
Severe Setback for the Hospitality and Tourism Sector
The destruction of the Hilton Hotel is a major blow to Nepal’s hospitality and tourism industry, which has been struggling to recover from the effects of the pandemic. Just recently, the sector was showing signs of a strong resurgence, with tourist arrivals and hotel occupancy rates on the rise. The arson attack on a landmark hotel sends a chilling message to both domestic and international investors. Industry experts fear that this incident could lead to a significant loss of investor confidence in large-scale hospitality projects. Foreign investment flows, which are crucial for Nepal’s economic development, may be reconsidered by international hotel brands that were planning to expand into the Nepali market.
The incident underscores the fragility of Nepal’s investment climate in the face of political instability. The destruction of such a high-value asset, which was designed with resilience to withstand natural disasters like earthquakes, shows that human conflict can be a far greater threat. The fire at the Hilton serves as a grim symbol of how a nation’s progress, built over years of investment and effort, can be destroyed in a matter of hours due to political rage.
Divided Public Opinion and Economic Fallout
The community’s reaction to the burning of the Hilton is mixed. While some people view the act as a necessary, albeit destructive, form of symbolic protest against corruption and political privilege, others have condemned it as a counterproductive act of violence. The destruction of a hotel and a superstore not only causes heavy losses for investors but also impacts ordinary workers and the wider economy. As one local resident near Naxal commented, the fire may have been targeted at political elites, but in reality, the “whole community is suffering.” Jobs have been lost, businesses have been shuttered, and the national image has been tarnished.
The wider economic consequences of these incidents are immense. The private sector is already facing heavy losses and disruptions, and the uncertainty created by the ongoing unrest could deter future investments. The incidents are likely to lead to a surge in insurance claims and financial liabilities, putting a strain on the financial system. The Nepal Stock Exchange (NEPSE) has already been closed, and public transportation has been suspended, highlighting the paralysis of the economy. The business community has begun pressing the government to restore law and order while also addressing the root causes of the protests through meaningful dialogue. The ongoing Hilton fire is a vivid and painful reminder that political grievances, if left unaddressed, can escalate into a crisis with devastating economic and social consequences. The challenge for Nepal’s leadership is to find a way to meet the demands of its youth for reform while urgently restoring stability and protecting the nation’s economic assets.
For More: Hilton Hotel Continues Burning
