Nepal is experiencing a renaissance of luxury travel with new luxury resorts: ‘investors are optimistic’

But that wasn’t always the case.

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‘A glamorous destination’

The country’s first luxury accommodation was the Royal Hotel – today known as Yak & Yeti. It was opened in 1951 by Russian hotelier Boris Lisanevich, a pioneer in Nepal’s tourism industry, in a palace previously owned by the now dissolved Rana dynasty, which controlled the Himalayan kingdom for more than a century.

In the following decades, Nepal witnessed the birth of some of its most successful domestic high-end brands.

In the 1960s, local five-star hotels such as Hotel Annapurna and Soaltee opened. British adventurer Jim Edwards turned Tiger Tops in southern Nepal into one of South Asia’s pioneering premium wildlife tourism spots over the next decade, with businessman Dwarika Das Shrestha’s eponymous hotel, Dwarika’s, becoming a landmark luxury property that showcased the architecture of Kathmandu.

High-paying tourists were lured by the mythical, mysterious charm of the hard-to-reach Himalayan country. Then came the celebrities, from Hollywood actors Richard Gere and Keanu Reeves, to singers Mick Jagger, Ricky Martin and Sting.

Lisa Choegyal, a sustainable tourism consultant with 50 years of experience in Nepal, said the country used to be “a glamorous destination and a trendy place to be.”

“In Asia, most tourism circuits developed with foreign, independent travelers and then with the higher groups,” she said. “Nepal started exactly the other way around. It was a very unusual travel pattern.”

In 1998, Tiger Mountain Pokhara Lodge opened, another luxury property overlooking the beautiful fishtail-like mountain of Machhapuchchhrethe, along the route taken by Prince Charles.

“Nepal had quite a spectrum of (tourist) markets at that time and we need to get back to that,” says Choegyal, also director of Tiger Mountain Pokhara Lodge. “That’s why it’s exciting that Shinta Mani has teamed up with Sherpa Hospitality to get their name out there. I always thought we could do it ourselves, but we need the branded hotels and the marketing that goes with it.”

Reinventing luxury tourism

Located on a hill overlooking Jomsom, some 2,800 meters (9,200 feet) above sea level and with views of the Nilgiri and Dhaulagiri peaks, Shinta Mani Mustang is one of the most ambitious projects launched in Nepal in recent years. With a stone exterior that blends into the backdrop of arid hills and an interior that incorporates local hues and motifs, the resort pays tribute to the region’s heritage and culture.

“Bookings for high-end tourists have increased for us,” said Bijay Amatya, CEO of Kathmandu-based Kora Tours, who has been in the industry for 48 years. “The main indicator of an improving trend is that investors are optimistic and many luxury hotels are coming to Nepal. Investors are excited because they see the prospects.”

Luxury travelers to Nepal say they are impressed by both the breathtaking views and the service they receive in remote, difficult-to-reach locations – flights to places like Jomsom are highly weather dependent, and many access roads are still under construction.

“This place is unlike any other place you’ve been. Bring an open mind and lots of energy,” wrote one visitor on the travel website Tripadvisor, referring to Mustang and their $9,000 five-night stay at Shinta Mani Mustang.

“Luxury in the remote areas,” said another traveler about their experience.

International luxury brands – many of which are setting up shop outside Kathmandu – are diversifying Nepal’s tourism industry as they tap into the growing trend of ultra-luxury holidaymakers. Tourism analysts note that this will provide more alternatives to overcrowded tours, including tours to Everest and Annapurna base camps, which the country has been selling for decades.

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Last year, Thailand’s Dusit International opened a luxury hotel in Dhulikhel, an ancient city on the outskirts of Nepal’s capital. This year, the Kunda Himalayan Resort and Spa, located 3,030 meters (9,940 feet) above sea level, opens in the mountainous town of Phalpu, and the luxury Indian Postcard Hotel chain is making its way to Chitwan, known for its wildlife.

“We view competition in the luxury tourism market as a driving force for excellence and the progress of Nepal’s hospitality sector,” said Anirudh Chaudhary, manager of Dusit Thani Himalayan Resort in Dhulikhel.

Friedman and Sherpa Hospitality Group launched their luxury leisure brand Mountain Lodges of Nepal in 2022 in an effort to reinvent the country’s classic trekking routes.

Their 12-night curated Everest itinerary includes stays at eight luxury lodges, including a pop-up lodge at the mountain’s base camp, which aim to “take people off the Everest highway” for around $5,900 on a two-share basis , Friedman said.

Catherine Heald, co-founder and CEO of Remote Lands Inc – which specializes in luxury travel across Asia – said accommodation played a key role in meeting the expectations of customers who spent around $10,900 for a nine-day Nepal trip for two people. The new luxury hotels in Nepal “will find favor with luxury consumers,” she said.

“Customers who may have skipped Nepal for Bhutan can now make different purchasing decisions based on the quality of the product on offer.”

Tourists are becoming increasingly aware of their carbon footprint and the impact they have on host countries, experts say. A 2022 survey of 11,000 customers by American travel company Expedia Group found that 90 percent are looking for sustainable travel options.

Many high-end brands in Nepal have committed to an eco-friendly ethos. Dusit Thani promotes village tourism and local products, while Tiger Mountain Pokhara Lodge supports community forests and schools in the area, among other things.

“All markets are concerned with sustainability, not just environmental sustainability, but also where their tourism dollars go and who benefits,” said Choegyal.

Shinta Mani Mustang, meanwhile, invests in tours to lesser-known places like nearby Jomsom, employs a large number of Mustang locals and supports the Pasang Lhamu Foundation, a nonprofit organization named after the first Nepalese woman to climb Everest. The hotel also plans to open a hospitality school in Mustang to train the region’s next generation of hoteliers.

“We create high-quality jobs where they don’t exist,” says Friedman, who prides himself on developing luxury experience hotels in remote places.

Locals like Dawa Sangpo Gurung say they have seen the change. The 21-year-old left his server job in Pokhara to work as a butler at Shinta Mani. He said it provided a job closer to home in the Upper Mustang region and was a lucrative alternative to going abroad for the time being.

“It not only helps put the Mustang on the world map, but also helps local businesses and highlights our traditions,” he said. “This will help me improve my skills and hopefully be a stepping stone in (my) career in the hospitality industry.”

In Jomsom, locals are excited about the prospects of luxury tourism and the positive changes the “five-star” – as they call the hotel – can bring to the region.

“The world wants to come to Nepal,” Friedman said. “This is the time when Nepal must recognize these opportunities and the government must do something to make tourism function better.”