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Nepal is accelerating its push into the global luxury tourism market, with several leading international hotel brands planning to establish a presence in the country over the next five years as part of a strategy to attract higher-spending visitors.
The move marks a significant shift in Nepal’s tourism policy, aiming to transform the country’s long-standing image as a budget backpacker destination into a premium travel hub offering luxury hospitality, wellness and business tourism.
The strategy comes as Nepal’s tourism industry continues its strong post-pandemic recovery. The country welcomed around 1.15 million international tourists in 2025, one of its best-performing years since COVID-19. Growth has continued in 2026, with 620,453 foreign visitors arriving during the first six months, a 7.4% increase from the same period last year. India remained the largest source market, followed by the United States, China and Bangladesh.
A major boost to the sector came in June when Marriott International and Nepal’s CG Hospitality Global announced plans to develop The Ritz-Carlton Kathmandu and The Westin Kathmandu, both scheduled to open in 2031. The projects will introduce the Ritz-Carlton and Westin brands to Nepal for the first time, adding nearly 300 luxury rooms to Kathmandu’s hospitality sector.
The Ritz-Carlton Kathmandu will feature 150 luxury rooms, multiple restaurants, Nepal’s first luxury casino and branded Ritz-Carlton residences, targeting affluent leisure travellers, corporate guests and the growing meetings, incentives, conferences and exhibitions (MICE) market.
Before those projects open, Marriott is expected to launch the 225-room Luxury Collection Kathmandu in October 2026, making it the first Marriott-managed Luxury Collection hotel in South Asia. Marriott already operates several properties in Nepal, including Kathmandu Marriott Hotel, Aloft Kathmandu and Fairfield by Marriott.
According to Nepal’s Department of Tourism, the country currently has 222 star-rated hotels offering more than 26,000 beds, including 28 five-star hotels. Other international hotel operators already present include Hyatt, Hilton, Sheraton and Best Western, while additional investments are expected from IHG Hotels & Resorts, whose brands include InterContinental, Crowne Plaza and Hotel Indigo.
Most new developments are concentrated in Kathmandu, Pokhara, Chitwan and Lumbini, supported by improved tourism infrastructure, including the opening of Pokhara International Airport, upgrades to Tribhuvan International Airport and better road connectivity.
The government aims to boost high-value tourism by encouraging foreign investment in premium hotels and resorts, expanding luxury wellness and adventure travel, developing business events and convention tourism, improving connectivity and diversifying tourism beyond traditional trekking.
Officials believe the expansion of internationally recognised luxury hotel brands will strengthen Nepal’s appeal among affluent global travellers, create skilled jobs and support long-term economic growth while repositioning the country as a sophisticated destination for premium tourism.
