Holiday Inn by IHG and Club Chaulani Sign Management Agreement; NPR 2 Billion Hotel to Be Built in Dhangadhi

23rd December 2025, Kathmandu

In a landmark development for the hospitality sector in western Nepal Holiday Inn by IHG has officially signed a hotel management agreement with Club Chaulani Limited. The formal signing ceremony took place at the prestigious Holiday Inn Resort Kathmandu Budhanilkantha bringing together leaders from both organizations to mark the beginning of a multi billion rupee project.

Holiday Inn Management Agreement

This partnership represents a significant step for IHG Hotels and Resorts as it expands its footprint into the emerging markets of Nepal. The project is set to bring international standards of service and luxury to Dhangadhi a city that is rapidly transforming into a major economic and tourism hub.

DETAILS OF THE MANAGEMENT AGREEMENT AND LEADERSHIP

The agreement was signed by Dr Rajendra KC who serves as the Chairman of Club Chaulani Limited and Sudip Jain the Managing Director for IHG South Asia. During the event the leadership highlighted that this collaboration is more than just a business deal it is a strategic move to elevate the hospitality landscape of Sudurpaschim Province. Chartered Accountant Deepak Pandey provided further insights during a media briefing explaining that the project has been meticulously planned to meet global benchmarks while catering to the specific needs of the local market. This partnership ensures that the upcoming hotel will benefit from the extensive global expertise and operational excellence that the Holiday Inn brand is known for worldwide.

FINANCIAL STRUCTURE AND IPO PLANS

The total investment for the Holiday Inn Dhangadhi project is estimated at 2.20 billion rupees. The financial blueprint for the hotel follows a traditional 65 35 debt to equity ratio. This means that approximately 1.43 billion rupees will be secured through bank loans while the remaining 770 million rupees will be contributed as equity by the promoters. In an interesting move to involve the general public and enhance transparency the project has also announced its intention to launch an Initial Public Offering or IPO in the future. To facilitate this process Garima Capital Limited has been appointed as the official issue and sales manager. This public listing will allow domestic investors to become stakeholders in the first international five star hotel chain in the province.

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WORLD CLASS FACILITIES AND ACCOMMODATION

Once completed the Holiday Inn Dhangadhi will offer 115 modern guest rooms designed with a focus on comfort and functionality. This includes 5 premium suites that will provide a high level of luxury for distinguished guests and business travelers. The hotel is designed to be a comprehensive destination featuring a grand banquet hall capable of hosting up to 700 guests making it an ideal venue for large weddings and corporate conferences. Other key facilities will include an expansive casino covering 18,500 square feet a rooftop swimming pool with scenic views multi cuisine restaurants a modern fitness center and exclusive private dining areas. These amenities are expected to set a new benchmark for quality accommodation in the region.

STRATEGIC LOCATION AND TOURISM POTENTIAL

The choice of Dhangadhi for this project is highly strategic as the city serves as the gateway to the seven districts of Sudurpaschim Province. Located just 8 kilometers from Dhangadhi Airport the hotel will be easily accessible for both domestic and international travelers. Furthermore its proximity to the Indian border specifically the states of Uttarakhand and Uttar Pradesh presents a massive opportunity to attract cross border tourists. Dhangadhi is surrounded by natural beauty and cultural heritage including the Shuklaphanta National Park and Ghodaghodi Lake. The presence of a globally recognized brand like Holiday Inn is expected to draw more high spending tourists to these attractions thereby boosting the local economy.

ECONOMIC IMPACT AND REGIONAL DEVELOPMENT

The development of this five star hotel is expected to have a transformative effect on the economy of Dhangadhi and the surrounding areas. Beyond providing luxury services the project will generate significant local employment during both the construction and operational phases. By introducing international branded hospitality the project will help position Sudurpaschim Province as a credible destination for business tourism and high end leisure travel. The hotel is currently scheduled to begin its operations in early 2084 BS which will mark the beginning of a new era of quality service in western Nepal. The promoters believe that the successful execution of this project will encourage further private investment in the infrastructure of the province.

CONCLUSION AND LONG TERM VISION

In conclusion the management agreement between Holiday Inn by IHG and Club Chaulani Limited is a clear indicator of the growing confidence in the tourism potential of Nepal. With an investment of 2.20 billion rupees and a commitment to international standards the Holiday Inn Dhangadhi is poised to become a landmark institution in Sudurpaschim Province. The inclusion of an IPO plan further demonstrates a modern approach to corporate growth and public participation. As the project moves forward it remains a symbol of the progress and modernization of the hospitality industry in Nepal.

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