Five out of six hospitality companies listed on the Nepal Stock Exchange (Nepse) reported profits in the first nine months of the current fiscal year 2024/25, indicating a continued post-pandemic recovery for the tourism and hospitality sector. Unaudited third-quarter financial statements show these companies collectively earned a net profit of Rs 803.6m, a 1.58 percent increase compared to the same period of the last fiscal year.
Among the six publicly listed companies—Soaltee Hotel Ltd, Taragaon Regency Hotel Ltd, Oriental Hotel Ltd, City Hotel Ltd and two cable car and hospitality infrastructure companies, Chandragiri Hills Ltd and Kalinchowk Darshan Ltd, all but City Hotel posted profits. City Hotel Ltd, the operator of Hyatt Centric, posted a net loss of Rs 173.8m in the nine-month period. In contrast, Soaltee Hotel Ltd, which operates The Soaltee Kathmandu, led the profit chart with a net profit of Rs 467.3m, a 13.36 percent year-on-year growth. Next were Hyatt Regency operator Taragaon Regency with a net profit of (Rs 337.5m) and Oriental Hotel, which operates Radisson Kathmandu, with a net profit of Rs 44.75m. Kalinchowk Darshan (Rs 18.9m), and Chandragiri Hills (Rs 10.88m) also ended the third quarter in the green.
Despite the marginal increase in overall profitability, hotel companies saw only a slight increase in operating revenue. The combined operating income grew by just 2.71 percent compared to the same period last fiscal year, suggesting that while business has improved, growth is still modest and uneven across companies. For instance, Soaltee Hotel posted the highest operating income of Rs 1.89bn, followed by Taragaon Regency with Rs 1.08bn. Oriental Hotel generated Rs 502.1m, while City Hotel, despite its loss, reported revenues of Rs 202.3m. Chandragiri Hills earned Rs 104.3m, and Kalinchowk Darshan reported the lowest revenue at Rs 58.9m.
Taragaon Regency has the highest paid-up capital at Rs 1.96bn, followed by City Hotel (Rs 1.67bn). Other companies include Chandragiri Hills Ltd with Rs 1.53bn, Oriental Hotel with Rs 1.18bn, Soaltee Hotel Ltd with Rs 1.02bn and Kalinchowk Darshan with Rs 600m.
Reserve funds have also shown a healthy buildup, with Oriental Hotel leading with Rs 2.73bn, followed by Soaltee Hotel with Rs 1.54bn, and Taragaon Regency at Rs 1.03bn. Notably, City Hotel Ltd is the only company with negative reserves. This indicates that while most hospitality firms are now on a stable recovery path from the pandemic, some—particularly newer or highly leveraged ventures—are still struggling to break even.
In terms of earnings per share (EPS), a key indicator for shareholders, Taragaon Regency Hotel Ltd topped the list with an EPS of Rs 17.20, reflecting strong profitability and efficient capital use. Soaltee, Oriental and Kalinchowk Darshan were next, while City Hotel Ltd reported a negative EPS. Reflecting growing investor interest toward tourism and hospitality stocks, nine more hospitality companies have applied to the Securities Board of Nepal (Sebon) for approval to launch their initial public offerings (IPOs).
