29th October 2025, Kathmandu
Soaltee Hotel Limited, a cornerstone of Nepal’s hospitality industry, has announced an exceptionally attractive dividend of 31.58 percent for the fiscal year 2024/25.
Soaltee Hotel Declares Dividend
This significant declaration, comprising a combination of 15 percent bonus shares and 16.58 percent cash dividend (including applicable taxes), is a powerful indicator of the company’s robust financial health, post-pandemic recovery in the tourism sector, and unwavering commitment to enhancing shareholder value. This move not only rewards existing investors but also sends a strong, positive signal to the broader Nepalese stock market about the profitability and stability of premium hotel operations.
Strategic Dividend Structure for Maximum Shareholder Value
The decision by Soaltee Hotel’s Board of Directors to split the total payout into both bonus shares and cash dividend is a well-calculated financial strategy designed to offer multifaceted benefits to its shareholders:
Cash Dividend (16.58%): The cash component provides shareholders with immediate monetary returns and liquidity. This direct payout validates the company’s operational efficiency and ability to generate significant profit, serving as a tangible reward for their investment.
Bonus Shares (15%): The distribution of bonus shares serves a dual purpose. Firstly, it allows shareholders to increase their equity stake in the company without any personal investment, thereby increasing their future dividend and ownership rights. Secondly, from the company’s perspective, this mechanism allows it to capitalize a portion of its retained earnings. By converting profits into paid-up capital, which currently stands at NPR 102,186,269, Soaltee Hotel demonstrates confidence in its long-term financial stability and future growth trajectory. This increase in capital also signals the company’s prudent financial management, as it retains cash for ongoing projects and future expansion while rewarding investors with equity growth.
This strategic balance ensures that investors benefit from both instant returns and long-term capital appreciation, fostering strong investor confidence and loyalty.
Hospitality Sector Resilience and Financial Strength
The declaration of a high dividend rate like 31.58 percent underscores the remarkable resilience and profitability of Nepal’s hospitality sector, particularly the luxury segment, in the aftermath of global challenges. As tourism figures in Nepal rebound, Soaltee Hotel, recognized for its strong corporate governance and high-quality services, is strategically positioned to capture the renewed influx of both domestic and international visitors.
The dividend acts as a crucial positive signal (signaling effect) to the market, indicating that management believes the company’s strong earnings momentum is sustainable. Companies with consistent and attractive dividend payouts are often viewed as reliable, low-risk investments, which can enhance their standing within the Nepal Stock Exchange (NEPSE). The ability to maintain high profitability and distribute a generous portion of those earnings highlights the efficacy of the hotel’s operational and financial strategies.
Key Dates and Corporate Governance: The 51st Annual General Meeting
In adherence to regulatory and corporate governance standards, the company has released essential details concerning the approval and distribution of this dividend:
Annual General Meeting (AGM): The 51st AGM is scheduled for Mangsir 28, 2082 (December 13, 2025), and will be held at the prestigious Tribhuvan Army Officers’ Club in Kathmandu. This meeting is a key event for shareholders to ratify the dividend, review the company’s financial performance, and engage in discussions about its strategic future and ongoing projects.
Book Closure Period: To determine the definitive list of eligible shareholders for the dividend and AGM participation, the company has declared a book closure period from Mangsir 5 to Mangsir 28, 2082. Only those shareholders whose names are recorded in the company’s books before Mangsir 5 will be entitled to receive the attractive 31.58 percent dividend.
This level of transparency in communicating financial performance and shareholder events reinforces Soaltee Hotel’s commitment to excellent investor relations and regulatory compliance. The opportunity for shareholders to participate actively in the AGM is a cornerstone of strong corporate governance, ensuring that the company’s strategic direction remains aligned with shareholder interests.
Outlook: Sustainable Growth and Market Leadership
By strategically rewarding its shareholders through this balanced dividend, Soaltee Hotel ensures its sustained growth while maintaining strong financial liquidity. The management’s focus on both immediate cash returns and equity-boosting bonus shares is a testament to its long-term vision. This dividend declaration is not just a financial transaction; it is a declaration of the hotel’s operational stability, financial prudence, and continued leadership in Nepal’s vital tourism and hospitality market. Investors are encouraged to actively note the book closure date to secure their entitlement to this substantial payout and participate in the critical discussions at the upcoming AGM.
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