Shyam Bahadur Panday, a pioneering figure in Nepal's hospitality industry, passed away on July 22. He was 88. Born on October 12, 1936, in Lazimpat, Kathmandu, Panday was the founding chairperson of the iconic Hotel Shangri-La, Kathmandu - a landmark property that transformed the country’s hospitality scene. In the mid-1970s, as Nepal's hotel industry was just beginning to emerge, Panday, a young civil servant who had taken early retirement, embarked on a bold venture. He established Hotel Shangri-La in Lazimpat, an area then considered non-commercial. At that time, Kathmandu boasted only a few five-star hotels, such as Hotel Soaltee and Hotel Annapurna, both operated by the royal family. 

Panday identified a market gap between the high-end hotels and budget accommodations in Thamel and decided to fill this gap by opening a four-star hotel. Opened in 1979, Hotel Shangri-La not only filled this gap but also played a key role in revitalising the Lazimpat area, which has since transformed into a prominent hub featuring multiple upscale hotels. Panday’s father, Rudra Bahadur Panday, was a distinguished military figure and a descendant of the renowned General Kalu Panday. Following his government career, Panday ventured into business, demonstrating that retirement could spark new and creative endeavours.

Despite his limited knowledge of the hospitality sector, Panday pursued his vision for Hotel Shangri-La with great determination. Writer and explorer Desmond Doig was instrumental in bringing Panday’s vision to life, significantly contributing to the hotel’s conceptualization and design. The hotel soon became popular among visitors. Buoyed by this success in Kathmandu, Panday expanded the Shangri-La brand to Pokhara. Tourism entrepreneurs remember Panday as a trailblazer who did not rely on international chains but instead developed Nepali hotels to international standards. They say Panday was one of the early hoteliers who championed the idea of attracting quality tourists to Nepal by elevating local hospitality standards to meet global expectations.

Yogendra Shakya, chairperson of Ace Hotels, praised Panday for his bravery and entrepreneurial vision, noting that the establishment of Hotel Shangri-La was a pivotal contribution to Nepal’s hospitality sector. “At that time, there were budget hotels in Thamel, and Annapurna and Soaltee were the five-star establishments,” Shakya said. “Panday made a significant contribution by introducing a four-star hotel to fill that gap.” Panday’s influence extended beyond his hotel. He was actively involved with national and international tourism organisations, including the Hotel Association of Nepal (HAN) and the Pacific Asia Travel Association (PATA). HAN President Binayak Shah commended Panday for his instrumental role in introducing world-class hospitality services to Nepal and his significant contributions to shaping the country’s tourism policies and regulations.

While many hotels in Kathmandu entered into management agreements with international hotel chains, Panday chose not to pursue such agreements during his active years as a hotelier. However, the Pandays reimagined their approach to hotel management after the COVID-19 pandemic, concluding that the sector cannot progress with only Nepali management and brands. As a result, the Shangri-La Group decided to partner with an international hotel chain.

In April 2023, his sons, Prasidha and Prabin Panday, entered into a partnership agreement with IHG Hotels & Resorts - the British multinational hospitality company. This management agreement aims to develop four new hotel properties in Nepal. The new hotels under this partnership are the InterContinental Kathmandu in Lazimpat, Hotel Indigo Pokhara in Gharipatan, InterContinental Resort Pokhara at Begnas Lake and InterContinental Resort Chitwan in Meghauli. Panday’s life stands as a testament to the idea that retirement can be a time for creativity. His contributions to Nepal's tourism industry were recognised with a Lifetime Achievement Award by New Business Age Pvt Ltd in 2024 - a fitting tribute to his enduring impact.