Kathmandu - Over the past decade, Nepal witnessed significant growth in tourism infrastructure, with an eight-fold rise in banking sector credit from 2014 to 2024, reflecting a boom in hotel construction.

However, the current decade is marked by challenges. Many investors, particularly those who relied on loans, now regret their decisions and are eager to sell as the sector struggles to grow.

Experts report that several large hotels outside Kathmandu are up for sale, attracting more interest from Indian buyers than Nepali ones. Indians see the current market as an opportunity to acquire properties at low prices with promising future returns.

Hotels built around Bhairahawa Airport in anticipation of increased tourism are now on the market, while Kathmandu continues to see new projects alongside sales of older establishments.

Rising competition and stagnant growth are driving many hotel owners, including experienced hoteliers, to exit the sector. 
'New hotel owners may enjoy initial success, but older properties face declining business, prompting large-scale sales,' said one hotelier.

Indian investors, previously absent during Nepal’s recent hotel boom, are showing renewed interest. 

'They missed the second wave of hotel development but now view the crisis as a chance to buy cheaply,' said an industry expert, noting that no major deals have been finalized.

Sources confirm ongoing negotiations for at least three major hotels, with Indian and Nepali business groups involved.