Sarovar Hotels expands Nepal presence with new property signing in Kathmandu

Sarovar Hotels announced on April 2026 the signing of a new hotel property in Kathmandu, Nepal, expanding its presence in the country as part of its regional growth strategy, the company said, citing increasing tourism demand and development opportunities in the capital city.

New property signed in Kathmandu

The company confirmed that the hotel will be located in Kathmandu, marking an addition to its existing portfolio in Nepal. The property is expected to operate under one of Sarovar Hotels’ established brands, though the brand name and number of rooms were not disclosed.

Officials said the project will be developed in partnership with a local owner, aligning with the company’s asset-light expansion model. The agreement was formalized in April 2026, with development timelines yet to be announced.

The hotel is expected to cater to both business and leisure travelers visiting the Nepalese capital.

Expansion strategy in Nepal market

Sarovar Hotels said Nepal remains a key focus market for its international expansion, supported by proximity to India and growing inbound tourism. The Kathmandu signing strengthens the company’s footprint in a destination that continues to see rising hotel development activity.

“This signing reinforces our commitment to expanding in high-potential markets like Nepal,” a company spokesperson said in a statement.

The company added that it aims to build a diversified portfolio across major cities and tourism hubs in the region.

Focus on asset-light growth model

Sarovar Hotels continues to expand through management agreements and partnerships rather than direct ownership. Officials said this approach allows the company to scale operations while optimizing capital deployment.

The Kathmandu project will be developed by a local partner, with Sarovar providing branding, management expertise and operational support. The company did not disclose financial details of the agreement.

Executives indicated that similar partnership-driven projects are under evaluation across South Asia.

Hospitality demand in Kathmandu

Kathmandu has remained a central hub for tourism and business travel in Nepal, attracting both international visitors and domestic travelers. Industry stakeholders said demand for branded hotels has been increasing, particularly in urban centers.

The city’s hospitality sector has been expanding with new hotel signings and openings by both domestic and international operators. Improved connectivity and tourism promotion initiatives have contributed to sustained demand growth.

The new Sarovar property is expected to add to the pipeline of upcoming hotel developments in the capital.

Background and current status

Sarovar Hotels operates a portfolio of hotels across India and international markets, with a presence in multiple segments. Nepal has emerged as a priority destination for the company’s overseas expansion efforts.

As of April 2026, the Kathmandu hotel project is in the early development stage, with further details on construction timelines, facilities and opening schedule expected to be announced as the project progresses.