Kathmandu, Nepal, May 28, 2015: IFC,
a member of the World Bank Group, will invest $3 million in Nepal Hospitality
and Hotel Private Limited to develop a greenfield, 3-star hotel in Kathmandu.
The investment will increase Nepal’s capacity in the mid-market hotel
segment, create jobs, and promote energy-efficient hotel design. The hotel
will be operated by international chain Marriott under its Fairfield brand.
In addition to its own investment, IFC will mobilize $3 million from FMO,
the Netherlands-based development bank. These investments will help build
skills of those employed in the sector and contribute to the development
of local supply chains. IFC will also help Nepal Hospitality and Hotel
adopt green building design and construction principles to implement energy
and water-efficiency measures.
Commenting on the occasion, Gaurav Agarwal, Managing Director of Nepal
Hospitality and Hotel, said, “This deal, amidst the recent earthquake,
reaffirms that the Nepali private sector, IFC, and FMO are committed towards
economic prosperity in Nepal. The 110-room Fairfield Kathmandu, the first
internationally-branded, professionally-managed mid-market hotel in Nepal,
will stimulate tourism and support the economy. The green building design
will serve as a model for replication across the industry.”
"IFC remains committed to supporting Nepal as it rebuilds its tourism
industry following the devastating earthquake in April, 2015. Investments
that support vital economic industries like tourism, will send a strong
signal to international investors that Nepal is poised for growth and is
an attractive destination that continues to cater to traveler needs,”
said Kyle F. Kelhofer, IFC Country Manager for Bangladesh, Nepal, and Bhutan.
The tourism sector in Nepal accounts for over 2 percent of the country’s
GDP, 5 percent of foreign exchange earnings, and employs approximately
half a million people. It also supports significant employment in ancillary
industries. International-standard hotel projects help emerging markets
like Nepal attract business and leisure travelers.
“Nepal right now needs support in its recovery and rebuilding efforts.
It also needs to build the confidence of, and bring back, tourists and
foreign investors,” said Vivek Pathak, IFC’s Director for Asia-Pacific.
“IFC’s investments promote development of critical infrastructure in
places where there is often a shortage of business class hotels for potential
investors and send a positive signal to other investors.”
IFC invests in hotels and tourism because of its strong development impact,
particularly for low-income countries and fragile and conflict-affected
countries. Since 1956, IFC has invested over $2.8 billion in over 260 projects
in 89 countries with more than half of these investments in frontier countries.
FMO is the Dutch development bank. FMO has invested in the private sector
in developing countries and emerging markets for more than 45 years. Our
mission is to empower entrepreneurs to build a better world. We invest
in sectors where we believe our contribution can have the highest long-term
impact: financial institutions, energy and agribusiness. Alongside partners,
we invest in the infrastructure, manufacturing and services sectors. With
an investment portfolio of EUR 8 billion spanning over 85 countries, FMO
is one of the larger bilateral private sector development banks globally.
For more information, visit www.fmo.nl
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit