- By Tamish Giri

Luxury boutique hotels such as Shinta Mani Mustang, Dusit Thani and Kavya are reshaping Nepal's tourism landscape, steadily propelling the nation into the forefront of luxury travel

Shinta Mani Mustang of Jomsom made it to the coveted list of National Geographic's 'Best New Hotels for 2024' list in January. The luxurious mountain property is promoted jointly by Kathmandu-based Sherpa Hospitality Group - a subsidiary of Yeti World - and HMD Asia. It is the first Shinta Mani property outside Cambodia. Designed by the renowned US architect Bill Bensley, this luxury boutique hotel caters to affluent, high-end travellers. Adding to Nepal's array of premium accommodations, the Dusit Thani Himalayan Resort in Dhulikhel welcomed its first guests last year. Just a 45-minute drive from Kathmandu, this opulent mountaintop resort is the result of a management agreement between Omstone Asia Capital Nepal and Dusit International, a renowned global hospitality company headquartered in Thailand. The resort has 54 elegantly appointed rooms and 18 exclusive villas, each offering breathtaking views of the majestic Himalayas.

This year, Nepal's hospitality scene will be further enriched by the addition of two premier establishments: the Kunda Himalayan Resort and Spa in Phaplu, and the inaugural property of India's esteemed The Postcard Hotel in the Nepali market. Crafted by Pumori Journeys, the Kunda Himalayan Resort boasts dome villas spanning 52 square metres, each featuring expansive 160-degree windows. This intimate sanctuary offers personalised amenities, ensuite bathrooms, and a hot tub that offers breathtaking views of the Himalayan mountains. The Postcard Hotel has partnered with Vaidya's Organization to develop a jungle resort in Chitwan with 22 rooms - all having heated swimming pools.

These emerging boutique properties, spearheaded by visionary travel entrepreneurs, are poised to redefine tourism in Nepal, a country historically known as a budget-friendly destination. Nepal's tourism journey began in the 1960s by targeting high-end travellers. During that era, affluent Westerners, undeterred by higher airfare costs compared to today, were drawn to the country's allure. At that time, Nepal boasted only a few luxurious hotels, with the illustrious Tiger Tops Jungle Lodge in Chitwan epitomising this exclusive appeal, enchanting travellers as one of Asia's most esteemed jungle retreats. Over five decades ago, tourists willingly spent over $200 solely for their stays in the property.

Emerging boutique properties, spearheaded by visionary travel entrepreneurs, are poised to redefine tourism in Nepal, a country historically known as a budget-friendly destination.

However, Nepal gradually lost this advantage as neighbouring countries like Bhutan strengthened their positioning as luxury tourist destinations. But Nepal's tourism scene is experiencing a remarkable renaissance, driven by the rise of luxurious accommodations like Shinta Mani Mustang, Dusit Thani Himalayan Resort and Kavya Resort & Spa. These properties epitomise a shift towards quality-focused experiences and have the potential to establish Nepal as a top-tier destination for travellers seeking tailor-made journeys amidst the Himalayas. This revival of luxury tourism in Nepal marks a departure from the traditional perception of the country solely as a budget-friendly destination. With substantial investments flowing into upscale properties and a revitalised commitment to delivering exceptional services, Nepal is gradually reclaiming its esteemed status. Through strategic planning and collaborative efforts among stakeholders, Nepal is set to make a remarkable comeback in the realm of luxury tourism. 

At a time when average daily spending of foreign tourists is seeing only a minimal rise, travellers are now willing to pay up to $1,800 per night for accommodations at Shinta Mani Mustang. The Sherpa Hospitality Group has adopted a unique approach by offering all-inclusive packages for Shinta Mani Mustang, requiring a minimum consecutive stay of five nights. "Shinta Mani Mustang represents our commitment to elevating Nepal to new heights as a premier luxury destination," said Elena Sen, group marketing and communications Manager, at Shinta Mani Mustang. In addition to Shinta Mani Mustang and Dusit Thani, Nepal now offers a variety of luxurious hotels targeting travellers seeking premium experiences. The Terraces in Lakuri Bhanjyang, Meghauli Serai - a Taj Safari in Meghauli and Kavya Resort & Spa in Nagarkot are among the new properties catering to the growing demand for high-end accommodations. Kavya Resort & Spa, which opened its rooms for visitors in July 2022, is promoted jointly by Nepal Investment Mega Bank Ltd Chairperson Prithvi Bahadur Pandey, Vishal Group and Diwakar Golchha Corp. The promoters have invested a whopping Rs 3 billion in the property.

"While Nepal may have been traditionally viewed as a budget destination, it holds immense untapped potential in the luxury market," Hitesh Golchha, the managing director of Kavya Resort & Spa, said. Stating that countries like Bhutan are offering experiences priced at up to $4,000 per night, he said there is a growing demand for luxury tourism in the region. 

"At Kavya, our conviction lies in providing top-tier services to redefine Nepal's image and position it as a premier luxury destination. It's about acknowledging our value and establishing a new standard for Nepali hospitality," Golchha said.

According to Golchha, Kavya Resort specialises in accommodating guests seeking extended stays ranging from three to 15 nights. Our aim is to reverse the trend of declining length of stay and expenditures of foreign tourists, said Golchha. Kavya's current occupancy rate stands at 25%. Golchha anticipates a rapid increase in room occupancy as the property solidifies its presence in the luxury segment. While the resort believes every season offers an ideal opportunity to indulge in its offerings, it notably experiences a significant influx of tourists from October to June.

According to the Hotel Association of Nepal (HAN), the average room rate for five-star hotels in Nepal is $150 per night, while four-star hotels average around $80 per night. However, the average room rates for boutique resorts tend to be significantly higher. Booking.com displays per night room prices of $350 for Kavya, $350 for Meghauli Serai, $300 for The Terraces, $400 for Fish Tail Lodge, $357 for Dwarika's Hotel, $500 for Dwarika's Resort and $290 for Dusit Thani.