Foreign investor walks out of Nepse-listed Soaltee Hotel

 Though the stable government led by Prime Minister KP Sharma Oli is trying to lure foreign investors, one of the foreign investor walked out of the country selling its shares.

Soaltee Enterprises has bought all the shares from an international company InterContinental Hotels Group to make the Nepse-listed Soaltee Crowne Plaza hotel a complete Nepali entity. Soaltee Enterprises – owned by former King Gyanendra Shah and his family – bought some 8.43 million units of shares at Rs 56.06 per unit totaling Rs 472.34 million worth transaction, according to the Nepal Stock Exchange (Nepse) floor sheet. The shares of the Soaltee Hotels is being traded at Rs 190 per unit at the share market currently. According to the Nepse, the bulk shares transfer took place today through broker 33 and 34.

Along with this purchase of shares from InterContinental Hotels Group, the Soaltee Hotel is now totally owned by only Nepali investors, confirmed one of the oldest five-star hotel in Nepal. The Hong Kong-based InterContinental Hotels Group had 10 per cent stake in Soaltee Hotel.

The shares of Soaltee Hotel that were in the ownership of InterContinental Hotels Group (IHG) were transferred to Soaltee Enterprises. After the share transfer, Soaltee Enterprises now owns 50 per cent stake in Soaltee hotel, whereas Oberoi Hotels Pvt Ltd holds eight per cent shares, Nepal Airlines Corporation (NAC) holds 12 per cent shares while the remaining 30 per cent stake is held by the public, as Soaltee Hotel is one of the listed hotels at the Nepal Stock Exchange (Nepse).

Founded by late prince Himalaya Bir Bikram Shah Dev and late princess Rajya Laxmi Devi Shah in 1965, Soaltee Crowne Plaza was formally inaugurated by late king Mahendra Bir Bikram Shah in 1966 with 104 rooms. But today Soaltee Crowne Plaza hosts 282 luxurious guest rooms and seven regal VVIP suites, spread over 12 acres.

In 1969, the Soaltee hotel was incorporated as a private limited company. Oberoi Hotels (India) Pvt Ltd, with its investment in shares capital, was entrusted with operational management of the hotel and rebranded as ‘Hotel Soaltee Oberoi’ in 1969. 

However, the hotel was converted into a public limited company in 1975 with an investment in the shares capital of the company by Nepal Industrial Development Corporation (NIDC), International Finance Corporation (IFC), Oberoi Hotels (India) Pvt Ltd, Nepal Airlines Corporation (NAC), promoters and the public. The shares of the hotel was listed at the share market with a face value of Rs 10 per unit.

Likewise, in 1994 the hotel was again renamed Soaltee Holiday Inn Crowne Plaza Kathmandu and was operated by Holiday Inns China, a fully owned subsidiary of InterContinental Hotels (IHG).

But in 1998, Soaltee Holiday Inn Crowne Plaza was again rebranded as Soaltee Crowne Plaza Kathmandu.

Listed hotels post handsome profits

The listed hotels – though they are only three in number – have posted record profits in the third quarter on increased arrivals and occupancy, though the average daily expenditure of tourists has been on decline.
Among the three listed hotels on the Nepal Stock Exchange (Nepse), which have published their unaudited financial reports for the third quarter ending mid-April, Soaltee Hotel and Taragaon Regency Hotels posted profits, whereas Oriental Hotels witnessed decline in profit.
Soaltee Hotel – according to its unaudited third-quarter report – posted Rs 231 million net profit, some 52.35 per cent increase compared to the same period last fiscal year. During the same period last fiscal year, Soaltee Hotel had posted net profit of Rs 151.64 million.
Soaltee Hotel earned revenues totaling Rs 1.31 billion, up by 16.61 per cent year-on-year while its total expenses amounted to Rs 1.02 billion, up by 8.77 per cent only, according to the report of the hotel  that claimed that it had been marketing aggressively to increase its occupancy in the fourth quarter in the key source markets including India.
Likewise, profit of another share market listed hotel – Taragaon Regency Hotels – has jumped by 29.47 per cent before bonus and tax in the third-quarter, compared to the same period in the last fiscal year. According to the unaudited financial statement published by the hotel – mandatory under regulatory order – it has posted a net profit of Rs 356.57 million in the third quarter of the current fiscal year, whereas Taragaon Regency Hotels had posted a net profit of Rs 275.40 million in the third quarter of the last fiscal year.
Taragaon Regency Hotels’ revenues – according to the third quarter report – increased by 14.28 per cent year-on-year to Rs 1.04 billion, whereas revenues totalled Rs 915.7 million. Likewise, Taragaon Regency Hotels’ paid-up capital stood at Rs 1.88 billion including Rs 777 million in reserves, the report reads, adding that its revenue swelled due to a rise in tourist arrivals and effective marketing strategy. “It may face competition in the coming days with the proliferation of five-star hotels in Nepal prompted by an improving political and business environment.”
However, Oriental Hotels, which operates the five-star Radisson Hotel in Kathmandu, reported a net profit rise of 6.32 per cent in the third quarter of the current fiscal year, according to the hotel’s unaudited report of the third quarter. “Oriental Hotels posted a net profit of Rs 207.45 million after tax, up from Rs 195.11 million in the same period in the last fiscal year,” the report reads, adding that its revenue collection stood at Rs 876 million. “Oriental Hotels’ profit growth slowed in the third quarter due to an increase in expenses as it had renovated 40 of its rooms.”
The fourth hotel – Yak N Yeti – that was earlier listed at the Nepse is no more in the share market since last half decade.
Nepal has lately witnessed a large number of hotels due to increasing number of tourists, though the tourist spending has not been increasing. “It will be challenging, if tourist arrivals do not match the increasing number of hotels lately,” Oriental Hotels writes in its report.
Tourist arrivals crossed the one-million mark for the first time in 2018, with 1.17 million foreign visitors travelling into the country, but their spending has plummeted to a seven-year low to $44, according to Hotel Association Nepal (HAN). “The average spending was $54 per day in 2017, whereas in 2003 – during the Maoist insurgency – the per day tourist spending hit a record $79.1.”
Last year, Nepal received 1.17 million tourists and earned a record Rs 70 billion in foreign exchange,” according to the statistics of HAN. “The previous year, the country had welcomed 940,218 foreign visitors and earned Rs 65.8 billion.”
But the increase in tourist arrivals does not match earnings also due to low spending of the tourists. “A arge number of hotels have been selling their rooms at cheaper rates, and as a result, earnings had not increased despite arrivals crossing the one-million mark,” according to HAN.

Business icon Prabhakar Rana passes away

A pioneer of Nepali tourism industry Prabhakar SJB Rana passed away while undergoing treatment in New York yesterday. Rana, 84, was admitted to the hospital one year ago.
Starting his career in the hotel industry, Rana built an empire with his honesty and moral in business. Engaged in multiple business including tourism, trade, automobiles, and hydropower, Rana believed in earning credibility and transparency in his business rather than making profits because ‘that’s what makes businesses successful’, according to him.
The first generation of Nepali entrepreneurs, chairman Emeritus of Soaltee Crowne Plaza, Rana was not only recognised for his initiative to bring an international hotel chain to Nepal but also for promoting tourism through hotel.
Rana was the founding chairperson of Soaltee Crowne Plaza and later on the chairman emeritus of the five-star hotel, though Soaltee was founded in 1966 by late prince Himalaya Bikram Shah and late princess Princep Rajya Laxmi. Rana later converted the hotel to a public limited company in 1975. Soaltee Crowne Plaza is one of the three hotels listed in the Nepal Sock Exchange (Nepse).
Until recently he was working on Soaltee Westend Hotel in Nepalgunj expanding the Soaltee brand outside the Kathmandu Valley.
Starting from the hotel industry, Rana expanded his business to travel and trekking, automobiles, tea garden and hydropower projects. He is also the founder president of Hotel Association Nepal (HAN) and Pacific Asia Travel Association (PATA) Nepal chapter.
Issuing press notes, both HAN and PATA said Rana could solely be credited for introducing international standards in the hospitality sector of the country.
Rana established Sipradi Trading – the authorised dealer of Tata Motors in Nepal – in 1982. In 1986, he invested in Surya Nepal, a multinational undertaking in joint partnership with firms of India and UK. Likewise, He started Bhotekoshi Power Company (BPC) – the first privately funded, run-of-the-river (ROR) power project in Nepal – in 1996.
Besides, he has also invested in Himalayan Tea Garden and Amravati Travels.
Rana was both professionally and personally close with late kings Mahendra and Birendra and in recent times with former king Gyanendra. But he never misused the power as usually is seen. He kept his freidship and professionalism separate though he was business partner of forme king Gyanendra.
He is survived by a son Siddhartha and a daughter Maya. Siddhartha Rana is currently looking after the entire business operations. The final rites of Rana will be performed in New York tomorrow.

PATA Nepal Chapter awards Rana, Kansakar

PATA Nepal felicitated its founder chairman Prabhakar SJB Rana with 'Lifetime Achievement' award during the 42nd Annual General Meeting (AGM) of Pacific Asia Travel Association (PATA) Nepal Chapter here today.
PATA Nepal felicitated its founder chairman Prabhakar SJB Rana with the first ever 'Lifetime Achievement' award in honour and recognition to his contributions, achievements and many layers of service in the development and promotion of quality-tourism in Nepal, reads a press note from the PATA Nepal Chapter.
Rana is the Chairman Emeritus of Soaltee Hotel and a well-known pioneer industrialist and entrepreneur in the tourism, hydropower and automobiles sector. He also served in many public and private sector organisations and institutions.
Likewise, PATA Nepal Chapter awarded managing director Nepal Airlines Corporation (NAC) Sugat Ratna Kansakar with the ‘PATA Personality of the year 2018 Award' in recognition of his valuable contribution and commendable role in promoting Nepali tourism sector over the recent years.
Similarly, the  ‘Best Student Chapter of the year’ was awarded to Nepal Academy of Tourism and Hotel Management (NATHM) in recognition of their dedication and contribution in engaging with the initiatives of PATA Nepal Chapter and best illustrating the activities, programmes, and events in line with the aims and objectives of PATA Nepal Student Chapter.
The 42nd AGM of Pacific Asia Travel Association (PATA) Nepal Chapter themed – 'Stepping towards Digital Transformation' – also listened an expert on Digital Marketing and executive director of Mekong Tourism Coordinating Office Jens Thraenhart as the keynote speaker, who shared the valuable insights on digital transformation. Embracing the need of digital transformation for Nepali tourism sector, PATA Nepal Chapter had invited Jens, who presented on 'Collaborative Social Commerce Driving Digital Transformation - an Opportunity for Nepal' on the occasion.
Likewise, PATA Nepal had also invited chairman of International China Investment Forum Dr Marcus Lee as the Guest of Honour, who presented on 'How to attract Chinese Visitors effectively'.
Welcoming the guests, PATA Nepal Chapter chairman, Sunil Sakya emphasised on the need for immediate strengthening the national flag carrier. "Opening of new air corridor and the necessary infrastructures along with the establishment of international Convention Center in Kathmandu valley are keys to promote tourism," he said, proposing the government and Nepal Tourism Board to bring back 'PATA Adventure Travel Mart' to Nepal in 2020. "As we are celebrating Visit Nepal Year in 2020, we believe that the hosting of PATA Adventure Mart once again in 2020 would be a great value-add for the industry and this would add the significant value to meet the target of 2 million tourists set by the government."
PATA Nepal Chapter had hosted PATA Adventure Travel Mart and Conference in Nepal 6 times in Nepal so far.
The chief guest tourism minister Rabindra Adhikari, on the occasion, commended PATA Nepal Chapter for successfully organising Himalayan Travel Mart, which has played an important role in promotion as well as increasing the tourist arrival in the country. He also emphasised that the increasing tourist arrival at the present scenario is the collaborative efforts along with the 22 hours operation of TIA and many positive initiatives undertaken. 

Soaltee wins 'TripAdviso Travellers' Choice 2014' award

Hotel Soaltee Crowne Plaza won the TripAdvisor Travellers' Choice 2014 for getting the highest number of appreciations from its guests on TripAdvisor.com for its product and services.

 "We are happy to be recognised as one of the world's best properties, based on the opinions of our valuable guests who express their views and feedback on TripAdvisor," said the general manager of the hotel – that is listed at the Nepal Stock Exchange (Nepse) – Nalin Mandiratta in a press note.

The hotel that has listed 30,087,191 units of stocks at the Nepse has reported Rs profit Rs 119.40 million – in the second quarter after taxes – up from Rs 8.35 million in the same quarter of the last fiscal year, due to mainly income from operations that surged to Rs
661.10 million from Rs 560.60 million in the same quarter. The stock of the five-star hotel has been trading at around Rs 340 per unit.

Best hotels in Nepal, according to TripAdvisor

TripAdvisor Inc – the world’s largest travel website – today recognised with 2014 Travelers’ Choice® awards under best hotels and bargain hotels categories.

According to the website, Hotel Tibet International in Kathmandu is the top hotel in Nepal, followed by Dwarika's Hotel in Kathmandu, whereas Hyatt Regency in Kathmandu featured third and Water Front Resort Hotel in Pokhara fourth.

Temple Tree Hotel & Spa in Pokhara is listed fourth, while Atithi Resort & Spa in Pokhara is fifth followed by Gokarna Forest Resort in Kathmandu; Hotel Shanker in Kathmandu; Pokhara Grande in Pokhara and Soaltee Crown Plaza in Kathmandu.

Likewise the travel website also listed top 10 bargain hotels in Nepal.

Trekkers Home in Kathmandu; Backyard Hotel in Kathmandu; Sacred Valley Inn in Pokhara; Hotel Silver Inn in Kathmandu; Hotel View Point in Pokhara; Hotel Travel-Inn in Pokhara; Jungle Safari Lodge in Sauraha; Hotel Middle Path in Pokhara; Hotel Family Home in Kathmandu and Hotel Encounter Nepal in Kathmandu are the top 10 hotels in the Bargain category in the 2014 Travelers’ Choice® awards.

"We’re excited to be recognized the world’s best properties, based on the opinions of those who know them best – the millions of travellers around the globe who come to TripAdvisor to share their experiences,” said chief marketing officer for TripAdvisor Barbara Messing.

"For those seeking inspiration for their 2014 travel planning, the list of spectacular accommodations that received 2014 Travelers’ Choice awards is a perfect place to start," Messing said.

"I am so happy to hear the news that we are listed in Travellers’ Choice Award," said executive director of Jungle Safari Lodge Suman Ghimire.

"Customers review were totally appreciable," he said, adding that they would like to thank all the visitors and for those who took their time to write a review in Tripadvisor.

As TripAdvisor has continued its growth globally, featuring sites in 30 countries and in 21 languages, the Travelers’ Choice Hotels awards now highlight a broader range of spectacular properties across the globe.

Soaltee bags Today’s Traveller Award

Hotel Soaltee Crowne Plaza has won Today’s Traveller Award 2013 for the Best International Business Hotel.

Oscar Fernandes, India’s minister of Road Transport and Highways, presented a prestigious award to the general manager of the hotel Nalin Mandiratta in New Delhi.

Today’s Traveller Award is one of India’s most respected travel and tourism industry awards incorporated in 2007 with an objective of recognising exceptional achievers and contributors, who have inspired all the players in the hospitality, travel and tourism industry.

Well known for its architecturally stunning exteriors, mountainous surroundings, comfortable rooms, state of the art meeting facilities, impeccable service and world class amenities, the iconic Soaltee hotel has received numerous awards and recognition in the past for excellent service delivery to all guest, said the hotel that is listed at the Nepal Stock Exchange (Nepse).

Labour Court asks Casino Mahjong not to fire employees

The Labour Court Kathmandu has asked Casino Mahjong not to fire employees who have been seeking legal remedy.

In an interlocutory order, the court has directed the casino not to take any decision regarding the fate of the employees until it gives a final verdict.

Casino Mahjong had stopped employees from entering the office on January 3, after they opposed the management's decision to lower the facilities being received by employees, said coordinator of the struggle committee Mukunda Raj Kharel.

Following the incident, employees of Casino Nepal had sued its new management, Mahjong Entertainment, claiming that it wanted them to reapply for their jobs. Around 46 staff of the casino housed at Hotel Soaltee had approached the court.

The employees have claimed that the casino owes them Rs 93.46 million in back pay, perks, provident fund and other benefits.

On November 8, the management had issued a public notice instructing employees who have served for more than 30 years to apply for new appointment.

Mahjong Entertainment has taken over the management of Casino Nepal whose licence had already been cancelled by the Public Accounts Committee (PAC) of then Constituent Assembly on March 25, 2011. The management of Nepal Recreation Centre have fled the country without paying a royalty of Rs 130 million to the government.

Soaltee bags World Travel Awards

Soaltee Crowne Plaza Kathmandu has won the prestigious World Travel Awards 2012 — also described as the ‘Oscars of the travel industry’ by the Wall Street Journal — for 'Nepal’s Leading Hotel'.
"We are absolutely delighted to win the award,” Soaltee Crowne Plaza Kathmandu general manager Nalin Mandiratta said, speaking on the award distribution ceremony in Singapore.“It makes us proud to be recognised on a global platform,” he said, thanking his team members for making the guests happy and creating a Great Hotel Guests Love.
Established in 1993, the World Travel Award serves to acknowledge, reward and celebrate excellence across all sectors of the global travel, tourism and hospitality industry.
Nominations are gathered by region and voting is carried out by millions of travel agents and tourism professionals from more than 164 countries, including visitors to World Travel Award’s website who are encouraged to submit their votes via the online voting system.
Listed at Nepal Stock Exchange, Soaltee Crowne Plaza Kathmandu is a five star deluxe hotel managed by InterContinental Hotels Group PLC and boasts an array of amenities like 282 rooms, seven meeting spaces, city’s finest specialty restaurants and bars, state-of- the-art fitness centre, beauty salon along with various recreational facilities making it a preferred destination for business meetings, leisure and all celebrations.
The preferred destination for business meetings, leisure and all celebrations in Kathmandu, Soaltee had posted Rs 300.58 million gross operating profit by the end of last fiscal year (June 30, 2012) compared to Rs 245.84 million in the same period of a fiscal year ago. Likewise, in the first quarter of the current fiscal year, the hotel has posted Rs 45.08 million gross operating profit compared to Rs 42.39 million in the same period a fiscal year ago. Soaltee has listed 17,908,990 unit shares at Rs 10 per unit at the Nepse and its shares were last traded at Rs 312 per unit.
Similarly, InterContinental Hotels Group (IHG) is the world’s largest hotel group by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, over 4,400 hotels and more than 645,000 guest rooms in 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental Hotels & Resorts, Hotel Indigo, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge Suites and Candlewood Suites and also manages the world’s largest hotel loyalty programme, Priority Club Rewards with 48 million members worldwide.IHG has 1,400 hotels in its development pipeline, which will create 140,000 jobs worldwide over the next few years. InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales.