Kathmandu. Hotel Sabrina Limited, which is preparing to issue an Initial Public Offering (IPO), has received an upgraded credit rating of CARE-NP B+ (Single B Plus) from . The latest rating marks an improvement from the B Rating assigned by in July last year, indicating progress in the company’s overall operational and financial position.
According to CARE Ratings Nepal, the rating reflects the experience of the company’s founders and management team, who possess diversified expertise across hospitality, banking, real estate, healthcare, education, and publishing sectors. The agency highlighted the promoters’ strong track record in managing and expanding businesses as a key strength providing strategic direction to the company.
While the B+ rating indicates moderate financial risk, the agency noted that the company has consistently met its principal and interest payment obligations without any repayment issues.
Hotel Sabrina currently operates in Budhanilkantha, Kathmandu, and is undergoing an upgrade to a five-star property. Upon completion, the hotel will operate under Tribe Kathmandu, a lifestyle brand of the globally renowned French hospitality group . The project will be the first TRIBE-branded hotel not only in Nepal but also in South Asia. Accor operates nearly 6,000 hotels worldwide, including the Mercure brand, and is reportedly exploring further expansion opportunities in Nepal.
The upgraded hotel will feature 105 rooms with a total project cost of NPR 2.14 billion, translating to approximately NPR 20 million per room. Of the total investment, NPR 950 million will be financed through debt, while the remaining amount will be raised through equity, meaning 57 percent of the project cost is being funded through equity capital.
The company has already applied to the for approval to issue 4.704 million IPO shares. The founding group will retain an investment of approximately NPR 749.6 million. The hotel is being developed and upgraded on three ropanis of land owned by the company.
Although the company obtained a credit rating for borrowing up to NPR 1.25 billion, management stated that total debt will be limited to NPR 950 million. has financed the project, with the company having utilized around NPR 650 million so far.
Despite ongoing construction, the company generated approximately NPR 70 million in revenue. Chairman said that while the original revenue target of NPR 120 million could not be achieved due to construction activities, generating NPR 70 million during the upgrade phase demonstrates the hotel’s business potential. He added that the company expects to generate around NPR 90 million in revenue from hotel operations and rental income this year.
Management believes the project’s relatively low construction cost and revenue potential will allow the company to repay all debt within about nine years, even with monthly revenue of around NPR 22.5 million. The hotel has already been operating for eight years and continues to earn income from leasing certain assets.
The TRIBE-branded property will feature two restaurants operating 24 hours a day, including what the company claims will be one of the largest rooftop restaurants in Kathmandu.
Hotel Sabrina expects to reach full operational capacity by the end of 2027. Chairman Thapa expressed confidence that the company could begin distributing dividends within the first or second year after the upgraded hotel becomes fully operational. He cited the hotel’s strategic location approximately six kilometers from and close to major attractions such as and as key factors expected to drive future business growth and support regular dividend payments to investors.
