The hospitality sector in Nepal is grabbing attention from investors as Hotel Forest Inn Limited launches its Initial Public Offering (IPO) — giving everyday investors a chance to own shares in a prominent five-star hotel project. This milestone reflects growing momentum in Nepal’s tourism sector and opens up an exciting opportunity for long-term investors.
What Is the Forest Inn IPO?
Hotel Forest Inn Limited has received approval from the Securities Board of Nepal (SEBON) to issue an IPO worth NPR 40 crore, which represents 20% of its total issued capital of NPR 200 crore. The IPO is structured in phases, with specific quotas for Nepalis working abroad, employees, mutual funds, and the general public.
The company has already allocated 400,000 shares to Nepalese citizens living abroad as part of the first phase of the IPO. These shares are offered at a par value of NPR 100 per share, and each applicant could apply for anywhere from a minimum of 10 shares to a maximum of 200,000 shares during the migrant quota period.
IPO Timeline & Application Details
The general public IPO opened on 22nd Magh, 2082 BS (roughly early February 2026) and is scheduled to close on 26th Magh, 2082 BS, subject to extension to 8th Falgun, 2082 BS if not fully subscribed. Investors can apply for a minimum of 10 shares and a maximum of 200,000 shares.
Applications are accepted through the MeroShare platform, participating banks and financial institutions, or other SEBON-recognized channels. NIC Asia Capital Limited is managing the issue.
About Hotel Forest Inn
Hotel Forest Inn is a five-star hotel project situated in Budhanilkantha, Kathmandu, built to international standards with 105 rooms, modern facilities like a swimming pool, spa, banquet halls, and dining outlets. The property operates under the Holiday Inn brand, licensed through the InterContinental Hotels Group (IHG) — a globally recognized hospitality name.
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Opened in mid-2024, the hotel targets both domestic and foreign tourists, business travelers, and event organizers, leveraging Kathmandu’s strategic location — just about 11 km from Tribhuvan International Airport and within reach of major cultural and heritage sites.
Why Invest? Potential Benefits
Here’s why many investors are watching the Forest Inn IPO:
1. Tourism Sector Growth
Nepal has prioritized tourism development, allocating significant resources to promote the industry and declaring 2023–2033 as the Tourism Decade — policies that support long-term travel demand and industry expansion.
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2. Brand Advantage
Being affiliated with the Holiday Inn brand gives Forest Inn an edge in international marketing, reservations, and service quality — factors that can boost occupancy and revenue potential.
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3. Ownership for Everyday Investors
The IPO structure allows retail investors to participate in a major hospitality project with relatively low minimum investment (10 shares), opening doors for many to enter equity markets.
Risks to Consider
Like any investment, this IPO has its risks:Moderate Credit Rating
Independent rating agencies such as CARE Ratings Nepal Limited have assigned a “BB-” rating to the company’s financial strength — suggesting a moderate risk level. This indicates investors should have a cautious, long-term view rather than expecting quick gains.
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Long Gestation and Competition
The hotel business typically takes years to fully recover its investment and stabilize operations. Kathmandu’s hospitality landscape is competitive, and maintaining high occupancy and revenue per available room (RevPAR) will be crucial.
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Should You Apply?
Whether you should apply depends on your investment goals:
Long-Term Growth: If you’re looking to invest for the long haul and believe in Nepal’s tourism future, this IPO represents an opportunity to own a share in a branded hotel.
Risk Appetite: Because of its moderate credit rating and the inherently cyclical nature of hotels, this IPO may suit investors with a moderate risk tolerance.
Diversification: For those building diversified portfolios, adding assets from the hospitality sector can hedge against other market exposures.
Always consult with a financial adviser or conduct your own research before applying.
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Final Takeaway
The Forest Inn IPO is one of Nepal’s notable hospitality stock offerings in recent times, blending international branding, tourism growth prospects, and public participation in capital markets. Whether you’re an experienced investor or new to equities, understanding the terms, risks, and potential rewards will help you decide if this opportunity aligns with your financial plan.
