Kathmandu-Among the eight companies listed under the hotel and tourism sector on the Nepal Stock Exchange (NEPSE), seven have published their unaudited financial statements for the third quarter of the current fiscal year 2025-26 ending mid-April.

According to the published reports, the overall tourism sector is showing signs of gradual recovery. However, internal unrest and rising administrative expenses have directly impacted the profitability of some major hotels.

During the review period, The Soaltee Hotels and Kalinchowk Darshan reported growth in net profit, while Taragaon Regency, Oriental Hotels, and City Hotel remained in losses. Chandragiri Hills, meanwhile, managed to reduce its losses.

The Soaltee Hotels

The Soaltee Hotels Limited earned a net profit of Rs 557.3 million in the first nine months of the current fiscal year, up 12.18 percent from Rs 490.7 million recorded during the same period last year.

The hotel’s total operating income increased from Rs 1.99 billion to Rs 2.24 billion during the review period. Operating profit stood at Rs 688.3 million.

The company currently has a paid-up capital of Rs 1.15 billion and reserves worth Rs 1.96 billion. Non-annualized earnings per share (EPS) stood at Rs 4.69, while net worth per share reached Rs 26.73. The current ratio was 1.50 times.

Taragaon Regency Hotels

Taragaon Regency Hotels Limited, which was directly affected by protests, vandalism, and arson incidents that took place in September last year, posted a net loss of Rs 144.8 million in the third quarter.

During the same period last year, the hotel had earned a net profit of Rs 337.5 million. Due to disruptions in operations, the company’s business income dropped sharply by 84.12 percent to Rs 171.9 million.

The company’s EPS turned negative at Rs 7.38, while its price-to-earnings (P/E) ratio stood negative at 104.47 times.

With a paid-up capital of Rs 1.96 billion, the hotel’s reserve fund declined to Rs 927.9 million. Net worth per share stood at Rs 147.30, while the market price per share was Rs 771.10.

The company stated that it is proceeding with insurance claims while carrying out repair and upgrade works at the hotel.

Oriental Hotels

Oriental Hotels Limited, the operating company of the five-star Radisson Hotel, also slipped into a net loss of Rs 29.3 million due to renovation works on rooms and restaurants.

During the same period last year, the hotel had posted a profit of Rs 40.3 million. Operating income declined from Rs 791.7 million to Rs 731.6 million this year.

The company stated that 60 old rooms and its main restaurants were closed for renovation, directly affecting revenue generation.

Oriental Hotels has a paid-up capital of Rs 1.18 billion and reserves worth Rs 2.70 billion. EPS stood negative at Rs 2.48, while net worth per share was Rs 328.17. The current ratio stood at 1.68 and the market price per share was Rs 701.

City Hotel

City Hotel Limited, operating under the new “Hyatt Centric” brand in Soltimod, continued to remain in losses, reporting a net loss of Rs 138.7 million.

However, the loss declined by 20.17 percent compared to Rs 173.8 million recorded during the same period last year.

Operating income improved slightly from Rs 353.8 million to Rs 356.7 million, while total income stood at Rs 376 million.

The hotel has a paid-up capital of Rs 3.01 billion, while its other equity remained negative at Rs 81.9 million.

EPS stood negative at Rs 4.60, net worth per share at Rs 97.28, current ratio at 2.36, and market price per share at Rs 473.40.

Chandragiri Hills

Chandragiri Hills Limited also showed gradual improvement in its financial condition, reducing its net loss to Rs 9.3 million by the third quarter.

This marks an improvement from the Rs 47 million loss reported in the second quarter. During the same period last year, the company had earned a net profit of Rs 108.8 million.

The slowdown in financial activities caused by the September protests limited total operating income to Rs 455.8 million over the nine-month period.

The company has a paid-up capital of Rs 1.61 billion and reserves worth Rs 316,000. EPS stood negative at Rs 0.58, while net worth per share was Rs 100.20. The current ratio stood at 4.53 and market price per share at Rs 521.

After completing reconstruction of damaged physical infrastructure, the company has resumed full-capacity operation of its cable car and resort facilities. It also increased cable car ticket prices by Rs 25 from mid-April.

Kalinchowk Darshan

Kalinchowk Darshan Limited reported strong improvement in profitability. The company earned a net profit of Rs 49.7 million in the first nine months, representing a 163.81 percent increase from Rs 18.8 million during the same period last year.

Its main operating income increased from Rs 56.3 million to Rs 63.3 million, while income from other sources stood at Rs 35.8 million.

The company currently has a paid-up capital of Rs 630 million and reserves worth Rs 50.3 million.

EPS reached Rs 10.52, while net worth per share stood at Rs 107.94. The P/E ratio stood at 62.88 times, current ratio at 1.51, and market price per share at Rs 872.10.

Although the company had to bear a 1 percent depreciation loss on cable car structures due to the September unrest, rising tourist arrivals in recent months strengthened its overall performance.

Bandipur Cable Car and Tourism

Another newly listed company in the sector, Bandipur Cable Car and Tourism Limited, also published its third-quarter unaudited financial report.

According to the report, the company posted a net loss of Rs 16.2 million during the review period, compared to a loss of Rs 12.4 million during the same period last year.

Total consolidated operating income stood at Rs 11.6 million.

The company stated that rising employee expenses and administrative costs pushed total expenditures to Rs 26.5 million, resulting in a negative operating profit.

After paying Rs 8 million in financial expenses, the company’s consolidated net loss widened to Rs 20.7 million by the third quarter.

Bandipur Cable Car currently has a paid-up capital of Rs 2.82 billion, while its reserve fund remains negative at Rs 267.8 million. EPS stood negative at Rs 0.57, while net worth per share was Rs 99.90.