Hotel Forest Inn Limited has stepped into Nepal’s primary capital market at a time when the country’s tourism and hospitality sector is slowly regaining momentum after several years of disruption. With domestic travel picking up and international tourist arrivals showing gradual improvement, hospitality companies are once again attracting investor attention. Against this backdrop, the public issue of Hotel Forest Inn Limited presents investors with an opportunity to participate in a large-scale hotel project, while also demanding a careful evaluation of risks associated with early-stage operations.
Originally incorporated in Mangsir 2067 as Hotel Forest Resort Private Limited, the company was converted into a public limited entity on Bhadra 12, 2080 and is now registered as Hotel Forest Inn Limited. The company operates a five-star hotel under the internationally recognized brand “Holiday Inn Resort Budhanilkantha,” located in Budhanilkantha, Kathmandu. The property is spread across approximately 1.24 hectares of land and has a total capacity of 104 rooms. Commercial operations began partially from July 2024 and were expanded in phases. As of now, all 104 rooms are operational, marking the completion of the hotel’s core infrastructure.
The company’s issued capital stands at NPR 2 arba. Of this, 20 percent, or 40 lakh shares, are being issued to the public. In addition, 10 percent of shares are reserved for Foreign Nepalis, 5 percent for mutual funds, and 2 percent for company employees. After these reservations, 33.20 lakh shares will be available for general public investors. The IPO is being managed by NIC Asia Capital Limited.
Financially, Hotel Forest Inn Limited is still in the stabilization stage. The company’s net worth per share without asset revaluation was NPR 92.96 in FY 2079/80, NPR 93.39 in FY 2080/81, and NPR 90.65 in FY 2081/82. When asset revaluation is included, net worth per share improves to NPR 92.96 in FY 2079/80, NPR 147.37 in FY 2080/81, and NPR 125.26 in FY 2081/82. However, earnings performance remains weak. The company reported earnings per share of NPR 1.49 in FY 2079/80, followed by a loss of NPR 1.69 per share in FY 2080/81 and a deeper loss of NPR 16.86 per share in FY 2081/82. These figures indicate that the company has yet to reach profitable operations, which is not uncommon for newly operational hotels but nonetheless increases investment risk.
The Board of Directors is chaired by Binita Thapa, with Chandra Singh Saud and Amar Thapa serving as directors. The company’s future performance will depend heavily on management’s ability to increase occupancy rates, control operating costs, and position the hotel competitively within Kathmandu’s growing hospitality market.
From an investment standpoint, Hotel Forest Inn Limited represents a play on Nepal’s long-term tourism growth rather than near-term earnings. If tourist arrivals continue to rise and the hotel successfully builds its brand and customer base, revenue and profitability could improve over time. However, the hospitality sector is highly sensitive to economic cycles, geopolitical events, and external shocks, making earnings unpredictable.
In conclusion, the IPO of Hotel Forest Inn Limited is best suited for investors with a long-term horizon and higher risk tolerance who are willing to wait for the business to mature. Conservative investors seeking stable profits and regular dividends may find this offering less attractive at present. As with any IPO, a careful reading of the prospectus and an honest assessment of personal risk appetite are essential before making an investment decision.
For a fully detailed equity research report on this IPO, please click the link below to download.