Himal Press 
KATHMANDU: The aftershocks of the Gen Z protests of September 8 and 9 are now visible in the second-quarter financial results of hospitality companies listed on the Nepal Stock Exchange (Nepse). Second-quarter disclosures made to Nepse show that five out of seven hospitality companies are in the red.
Bandipur Cable Car, Oriental Hotels Limited, Chandragiri Hills Limited, City Hotel Limited, and Taragaon Regency Hotels Limited posted negative earnings in the second quarter. They have cited a sharp decline in domestic and international tourist arrivals amid political unrest as the reason for their poor financial performance. However, Soaltee Hotel Ltd and Kalinchowk Darshan Ltd were reported profits in the review quarter.
The September protests claimed 76 lives and caused billions of rupees in damage to public and private property. The Hotel Association Nepal (HAN) has estimated that the hotel sector alone suffered losses exceeding Rs 25 billion due to vandalism, looting, and arson during the unrest. Around two dozen hotels, including leading brands in Kathmandu and Pokhara, were damaged. Hilton Kathmandu and Hyatt Regency (Taragaon Regency Hotels) were among the worst-hit properties.
Chandragiri Hills reported a net loss of Rs 47.02 million in the second quarter, compared to a net profit of Rs 66.48 million in the same period last year. Its operating income has come down by 41.07% to Rs 248.96 million. The company remained shut following the protests due to damage to its infrastructure and cable car equipment. It resumed operation only in late November.
Taragaon Regency Hotels posted a net loss of Rs 90.83 million in the first six months of the fiscal year, a sharp reversal from a profit of Rs 186.78 million a year earlier. According to the company, its hotel has remained fully closed since the protests due to extensive physical and financial damage. The attack also affected the company’s plan to upgrade Hyatt Regency to Grand Hyatt.
Oriental Hotels, which operates Radisson Kathmandu, also reported a net loss of Rs 27.43 million in the second quarter. Similarly, City Hotel, the operator of Hyatt Centric, posted a Rs 100.94 million loss over six months.
Bandipur Cable Car narrowed its losses to Rs 7.49 million in the second quarter. However, the company said its hotel project suffered a delay due to unrest and political instability.
Soaltee Hotel Limited and Kalinchowk Darshan Limited, however, remained profitable. Soaltee’s net profit rose 12.95% to Rs 347.56 million in the review period, while Kalinchowk Darshan posted a net profit of Rs 11.99 million.
