Hotel Eastern Nepal IPO issue announced
17th February 2026, Kathmandu
The hospitality sector in eastern Nepal has achieved a significant financial milestone with the formal announcement of the initial public offering process for Hotel Eastern Nepal Limited. On February 16, 2026, or Falgun 4, 2082, in the local calendar, the company entered into a bilateral agreement with NIC Asia Capital Limited to serve as the official issue and sales manager. This partnership is being facilitated under the flagship Idea to IPO advisory service of NIC Asia Capital, which provides end to end consultancy for companies transitioning from private entities to public limited status. The move signals a major expansion in the tourism infrastructure of the Jhapa district and reflects the growing trend of large scale hospitality projects leveraging the capital markets for long term financing.
Hotel Eastern Nepal IPO
Hotel Eastern Nepal Limited is developing an international standard five star hotel project located in Mechinagar 10, Jhapa. The project is strategically positioned near the eastern gateway of Nepal, situated just 7 kilometers from the Indian border at Kakarvitta and approximately 27 kilometers from Bagdogra Airport in India. This prime location is designed to capitalize on the massive influx of Indian and international tourists entering Nepal through the Asian Highway. The hotel aims to serve as a key economic contributor to the region, targeting not only leisure travelers but also the growing demand for meetings, incentives, conferences, and exhibitions from the commercial and agricultural sectors of eastern Nepal.
The project itself has seen a significant evolution in its scope and investment. Originally planned with an investment of 2.14 billion rupees, the total estimated cost has recently been revised upward to approximately 3.27 billion rupees. This increase of over 1 billion rupees reflects several strategic enhancements, including the addition of a world class casino, expanded banquet facilities, and the acquisition of additional land to accommodate premium guest amenities. To support this high level of investment, the company has secured a credit rating of BB minus for its long term bank facilities, totaling 2.29 billion rupees. The project follows a debt to equity ratio of 70 to 30, with the promoters having already infused their committed equity to ensure steady construction progress.
To ensure that the property meets global hospitality standards, Hotel Eastern Nepal Limited has signed a management agreement with InterContinental Hotels Group Asia Pacific. Under this partnership, the hotel will be operated under the globally recognized Holiday Inn Express and Suites brand. This is the second such collaboration between the promoters of Hotel Eastern Nepal and IHG, following the successful launch of the Holiday Inn Resort in Kathmandu Budhanilkantha. The involvement of an international brand is expected to provide the hotel with access to global reservation systems, standardized operational excellence, and a high degree of trust among international travelers.
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Construction of the hotel is currently in its final phase. As of the latest project updates in early 2082, around 40 percent of the financial progress had been achieved, with physical works moving toward the completion of the 99 guest rooms and suites. The company has set a target for a soft opening by Jestha 2083, with the goal of reaching full operational capacity shortly thereafter. Once open, the hotel will feature a diverse range of premium facilities, including a rooftop swimming pool, a spa, a Jacuzzi, and a fully equipped health club. The inclusion of a large scale casino and sophisticated gaming zones is expected to be a major draw for visitors from across the border, where gaming laws are significantly more restrictive.
NIC Asia Capital’s Idea to IPO service plays a critical role in this transition. This model provides structured advisory that covers everything from corporate restructuring and financial audits to the final submission of the prospectus to the Securities Board of Nepal. By utilizing this framework, Hotel Eastern Nepal ensures that it meets all regulatory requirements and governance standards necessary for a successful public listing. The transformation into a public company will allow retail investors to participate in the growth of the eastern tourism corridor, providing them with a chance to own shares in a high potential hospitality asset.
The broader outlook for the Jhapa district is one of rapid transformation into a five star hotel hub. With the recent opening of Hotel Ashwatth and the continued operation of Mechi Crown, the addition of the Holiday Inn Express and Suites in Dhulabari will further solidify the region’s status as a premier destination for cross border tourism. The rapid construction of the Asian Highway, which connects dozens of countries, is expected to drive even higher occupancy rates in the coming years. For investors, the Hotel Eastern Nepal IPO represents an opportunity to invest in a project that combines local strategic location with international management expertise.
In conclusion, the partnership between Hotel Eastern Nepal Limited and NIC Asia Capital marks the beginning of a new phase for the Jhapa hospitality industry. With a 3.27 billion rupee investment and an international brand partnership already in place, the company is well positioned for its upcoming public debut. While the project faces challenges common to large scale hospitality ventures, such as long gestation periods and interest rate sensitivity, the strong promoter backing and strategic proximity to India provide a solid foundation for long term success. Investors and stakeholders will be closely watching the progress toward the Jestha 2083 soft opening and the subsequent announcement of the IPO subscription dates.
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