Nepal's tourism industry is roaring back to life, and its hotels are reaping the rewards! A strong rebound in foreign visitors has led to significant profit increases for most tourism-related companies listed on the stock exchange.

Five out of six hotel and tourism companies reported profit growth by the third quarter of the fiscal year. Two companies even saw their profits surge by nearly 40%. Even the lone company still in the red managed to narrow its losses.

Here's a breakdown of the good news:

· Taragaon Regency Hotels: Net profit skyrocketed by 39.54%, thanks to a higher occupancy rate fueled by more international tourists. They're aiming to keep the momentum going with tech-driven strategies to boost bookings.

· Chandragiri Hills: Net profit climbed to over Rs 107.9 million, a jump from Rs 77.7 million last year.

· Soaltee Hotel: Net profit rose to over Rs 412.3 million, compared to Rs 371.1 million the previous year. They also treated investors to a 31.58% dividend, including bonus shares.

· Oriental Hotels: Net profit edged up slightly to over Rs 605.9 million from Rs 600 million last year. After a hiatus, they offered a 5.26% cash dividend this year.

· Kalinchok Darshan: Net profit increased to around Rs 247 million from above Rs 203.1 million last year.

Investor Alert! Three of these companies are known for consistently sharing their profits with investors through dividends. This year, Taragaon Regency Hotels, Soaltee Hotel, and Oriental Hotels continued the tradition.

The Secret Sauce? More Tourists!

The surge in tourist arrivals is the key ingredient behind this hospitality sector success story. As of April 2024, Nepal welcomed over 416,000 foreign tourists, a whopping 27.42% increase compared to the same period in 2023. This year, the National Statistics Office even predicts a growth rate of over 21% in accommodation and food services, directly linked to the tourism boom.

A Tale of Two Cities (Almost):

While most companies are celebrating, City Hotel is still struggling, despite cutting its losses. They're focusing on cost reduction strategies and have secured new income streams by renting space for casino operations. They've also partnered with Hyatt to upgrade their brand and are

making infrastructure changes to reflect Nepal's cultural heritage. While they're still battling debt, the Director remains optimistic about turning things around for investors within the next few years.

Overall, the outlook for Nepal's tourism sector is bright, and its hotels are experiencing a welcome financial windfall. With tourist arrivals continuing to climb, this positive trend is likely to hold steady.