Kathmandu. KATHMANDU: Care Ratings Nepal has downgraded the long-term loan rating of Birgunj-based four-star hotel, Hotel Diyalo Private Limited, following its poor financial condition. In 2025, the rating has been downgraded from ‘B plus’ to ‘B’ due to the hotel’s continuous cash loss due to low occupancy rate and decline in average room rates.
Hotel Diyalo has signed an agreement with Siddhartha Hospitality on October 30, 2025 to accelerate its business. The hotel, which had terminated its contract with Lord’s Inn Hotel and Developers in March 2025, will now manage Siddhartha and use the brand.
Siddhartha Hospitality is an established brand in Nepal. Its national and international marketing network is expected to help increase hotel bookings. Siddhartha will assist in integrated services, staff training and system implementation. This will increase the quality of service and guest satisfaction. Being located in a commercial center like Hotel Birgunj and Siddhartha’s grip on meetings, conferences, exhibitions and tourism will help in business growth.
However, due to the hotel industry’s long return period and intense competition in the market, it can be challenging to make big profits immediately.
Siddhartha Hospitality Group has a strong presence in the tourism market of Nepal. According to the release, Hotel Diyalo will benefit from this affiliation. Siddhartha’s established customer network allows the hotel to improve occupancy rates faster than the competition.
Prior to joining hands with Siddhartha Hospitality, Diyalo Hotel was briefly managed by Soaltee Hotels. Later, after a misunderstanding between the two parties, Soaltee was relieved of the responsibility of hotel management. Soaltee Hotels is currently managing another four-star hotel in Birgunj.
Diyalo Hotels’ total income fell from Rs 13.10 crore to Rs 11.7 crore last year. The hotel’s main source of income is casinos.
Although the financial condition of Hotel Dialo is challenging at present, the entry of Siddhartha Hospitality and the investment made by the government in the tourism sector by declaring the tourism decade 2023-2033 has kept the hope of positive improvement alive in the coming days.
