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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.
About FMO
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
About IFC
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
www.ifc.org
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