Six five-star hotels stay shut for years even as new hotels keep opening

While new hotels are being added rapidly in Nepal, six five-star hotels have remained out of operation for more than a year. Two of these belong to international chains. The hotels have said they halted service due to reconstruction and renovation.

According to the Nepal Tourism Board, about 1,158,000 tourists visited Nepal in 2025. In the first nine months of 2026, about 865,000 tourists have entered, more than in the same period the previous year.

Hyatt, Hilton, and the Varnawas Museum Hotel closed because of the Gen-Z protests of Bhadra 24, 2082 BS. The roughly 280-room Hyatt Regency in Boudha, in which the government also holds a share investment, is currently undergoing renovation and upgrading, and the hotel has placed its workers on leave.

The roughly 173-room Hilton Kathmandu in Naxal was completely damaged during the protests. With the insurance settlement not yet finalized, its reopening has been pushed back further.

The roughly 100-room Shangri-La Hotel in Lazimpat is being fully demolished and rebuilt as a new building; Shangri-La says the reconstruction is proceeding alongside an agreement to bring in an Indian chain hotel.

The historic, roughly 153-room Hotel de l'Annapurna on Durbar Marg is also being rebuilt in a new form after the old structure is demolished.