Hotel Forest Inn IPO opens for public investors

5th February 2026, Kathmandu

Hotel Forest Inn Limited (HFIL) has officially launched its Initial Public Offering (IPO) for the general public, marking a major entry for the hospitality sector into Nepal’s capital market. Starting from Magh 22, 2082 (February 5, 2026), the company has opened subscriptions for 3.32 million ordinary shares at a par value of 100 rupees per unit. This public issuance is part of the company’s strategy to transition from a private entity into a publicly listed five-star resort operator, leveraging the growing demand for luxury tourism in the Kathmandu Valley.

Hotel Forest Inn IPO

The IPO proceeds are set to bolster the company’s capital base as it stabilizes operations for its newly developed flagship property in Budhanilkantha.

IPO Structure and Public Allocation

The Hotel Forest Inn IPO is the second phase of the company’s public floatation. Following the successful allotment of shares to Nepalese citizens working abroad in late January, the current issue is directed at retail investors within Nepal.

• Total Issued Capital: 2 billion rupees (200 million units).
• Total Public Offering: 4 million units (20 percent of issued capital).
• Migrant Worker Allotment: 400,000 units (Already completed on Magh 13, 2082).
• Mutual Fund Reservation: 200,000 units (5 percent of the public quota).
• Employee Reservation: 80,000 units (2 percent of the public quota).
• General Public Issue: 3,320,000 units (The currently open portion).

NIC Asia Capital Limited is serving as the issue and sales manager, ensuring that the process follows the regulatory guidelines set by the Securities Board of Nepal (SEBON).

Project Overview: Holiday Inn Resort Budhanilkantha

Hotel Forest Inn Limited is the owner of the Holiday Inn Resort Budhanilkantha, a luxury five-star property that seamlessly blends international hospitality standards with the natural beauty of the Shivapuri Nagarjun National Park area.

Location: Budhanilkantha, Kathmandu (Spanning over 142,783 square feet).

Capacity: 105 premium room keys.

International Branding: The hotel operates under a license agreement with the InterContinental Hotels Group (IHG), specifically under the “Holiday Inn” brand.

Amenities: Features an infinity bar, specialized Chinese and Asian restaurants (Mekong), a full-service health spa, and a banquet hall with a 500-plus guest capacity.

Total Project Cost: Approximately 3.54 billion rupees.

The resort commenced commercial operations in mid-2024 and is currently in its stabilization phase, aiming to capture the high-end wedding and MICE (Meetings, Incentives, Conferences, and Exhibitions) market.

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Investment Timeline and Application Details

Individual investors interested in the Hotel Forest Inn IPO can apply through the Mero Share online platform or any C-ASBA approved bank.

Opening Date: Magh 22, 2082 (February 5, 2026).

Early Closing Date: Magh 26, 2082 (February 9, 2026).

Extended Deadline: Falgun 8, 2082 (In case of under-subscription).

Minimum Application: 10 units (1,000 rupees).

Maximum Application: 200,000 units (20 million rupees).

Credit Rating and Risk Assessment

To provide transparency to investors, the company has undergone rigorous credit evaluations. CARE Ratings Nepal Limited has assigned a “CARE-NP BB-” (Double B Minus) rating to the company’s long-term bank facilities and issuer profile. This rating indicates a moderate risk of default regarding the timely servicing of financial obligations.

While the association with the IHG brand and the strategic location are strengths, investors should be aware of the “long gestation period” typical of five-star hotel projects, where profitability often takes several years of operational stabilization to materialize.

Impact on the Tourism Sector

The public listing of Hotel Forest Inn Limited adds significant depth to the “Hotels and Tourism” index of the Nepal Stock Exchange (NEPSE). As more hospitality ventures like Forest Inn and City Hotel seek public funding, it reflects a maturing financial ecosystem where the tourism sector is no longer reliant solely on private equity or high-interest bank debt.

Conclusion

The Hotel Forest Inn IPO represents an opportunity for the general public to own a piece of a high-value, internationally branded hospitality asset in Kathmandu. With the subscription window open until Magh 26, 2082, the issue is expected to attract significant interest given the strong branding and the prime location of the resort. As the company transitions to a public entity, the focus will remain on achieving full operational capacity and delivering long-term value to its new base of over 300,000 projected shareholders.

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