IHG Signs Management Agreement for Holiday Inn Express & Suites Dhulabari in Nepal

IHG Hotels & Resorts has signed a management agreement with Hotel Eastern Nepal Pvt Ltd for the development of Holiday Inn Express & Suites Dhulabari in South-Eastern Nepal. The hotel is set to open in 2026 and will feature 99 rooms, an all-day dining outlet, banquet hall, fitness center, and ample parking. It will cater to business travelers, tourists, and local guests, and serve as a preferred venue for MICE and social events.

IHG Hotels & Resorts has signed a management agreement with Hotel Eastern Nepal Pvt Ltd for the development of Holiday Inn Express & Suites Dhulabari in South-Eastern Nepal. The hotel is set to open in 2026 and will feature 99 rooms, an all-day dining outlet, banquet hall, fitness center, and ample parking. It will cater to business travelers, tourists, and local guests, and serve as a preferred venue for MICE and social events [1].

Located in Dhulabari, a key town in the Jhapa District in the south-east of Nepal, the new development reinforces IHG’s commitment to growing its portfolio in high-potential markets across South West Asia. The signing marks the second partnership between IHG and Hotel Eastern Nepal Pvt Ltd, following the successful launch of Holiday Inn Resort Kathmandu Budhanilkantha [1].

The hotel's strategic location near the Nepal-India border at Kakarvitta and just a short distance from Chandragadi Domestic Airport offers seamless access for both domestic and international visitors. For those seeking spiritual exploration, the Pathibhara Devi Temple—one of Eastern Nepal’s most sacred pilgrimage sites—will only be a scenic 15 km drive away [1].

Commenting on the announcement, Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, said: “We are excited to strengthen our presence in Nepal with Holiday Inn Express & Suites Dhulabari. Building on the successful launch of Holiday Inn Resort Kathmandu Budhanilkantha with our partners, the new signing in Dhulabari is a testament to the trust, alignment, and shared vision we have established together” [1].

Binita Thapa Khadka, Chairperson, Hotel Eastern Nepal Ltd, added: “We are proud to expand our partnership with IHG Hotels & Resorts with the addition of a second hotel. Our experience of working with IHG for Holiday Inn Resort Kathmandu Budhanilkantha affirmed IHG’s operational excellence and brand value, making this next project a natural step forward. Dhulabari presents an exciting opportunity for growth, and with IHG’s trusted expertise and global standards, we are confident this hotel will elevate the hospitality offering in the region and serve as a strong economic contributor” [1].

The latest development comes at a time when IHG is reporting strong financial performance. In its Q2 2025 earnings call, the company reported a RevPAR growth of 1.8%, gross system growth of 7.7%, and net system growth of 5.4%. IHG signed over 51,000 rooms across 324 hotels, a 15% increase over the previous year. The company’s fee margin expanded by 390 basis points, and it completed 47% of its $900 million share buyback program, aiming to return over $1.1 billion to shareholders this year through buybacks and dividends [2].

IHG’s performance in the Americas region was slightly behind expectations, with fee revenues down by about 1% despite a 1.5% RevPAR growth. The company attributed this to high fee-paying hotel exits, increased hotel renovations, key money amortization, and the leap year effect. Despite these challenges, IHG remains optimistic about its long-term growth prospects, particularly in the US and China markets [2].

The development of Holiday Inn Express & Suites Dhulabari is a significant step for IHG in the Nepal market, reinforcing its commitment to growth in the region. With a strong financial performance backdrop, the hotel is poised to contribute to IHG’s continued expansion and profitability.

References:
[1] https://www.hotelierindia.com/development/ihg-hotels-to-develop-holiday-inn-express-suites-dhulabari-nepal
[2] https://ca.investing.com/news/company-news/intercontinental-hotels-group-plc-ihg-q2-2025-earnings-call-highlights-strong-growth-and--4145554