KATHMANDU: The five-star Hilton Hotel, a venture of the Shankar Group, is set to open in Kathmandu in June 2024.

The opulent Hotel Hilton, constructed under the helm of Jagadamba Hospitality Group Pvt., will operate as part of the globally renowned Hilton brand.

An agreement has been reached between Jagadamba and Hilton for the hotel’s management, with a ‘soft launch’ slated for December this year.

The hotel, situated in Naxal, is currently in the final stages of decoration and other finishing touches.

Jagadamba Hospitality has disclosed that the hotel will achieve full operational capacity from June 2024.

Hilton has stated that 90 percent of the hotel’s construction was completed.

Originally containing 135 rooms, the hotel’s capacity has now been expanded to 174, including 39 additional rooms.

Despite the initial construction commencement, the hotel faced delays due to the COVID-19 pandemic.

The total cost of the project has escalated to Rs 6 billion 854 million, with the pandemic contributing to a rise in costs to Rs 38 million per room from the initial estimate of 28 million rupees.

The funding structure for the hotel comprises 73 percent bank loans and 27 percent ownership by the founders.

Initially, the structure was planned with 75 percent bank loans and 25 percent founder ownership.

Currently, Shankar Group has invested 95 percent equity, and Jagadamba has secured an additional loan investment agreement of Rs 834 million with the bank.

The hotel will be managed under the Hilton ‘Kathmandu City Centre’ brand, following an agreement between Jagadamba Hospitality and Hilton Worldwide Management Limited of Britain.

Hilton Worldwide Incorporated, an American hospitality giant, currently manages 6,215 hotels and 983,465 rooms in 118 countries.

Shahil Agarwal, the Chairman of the hotel with 90 percent investment, boasts two decades of professional experience.

The Shankar Group, under Agarwal’s leadership, has diversified its investments into various sectors, including cement, Dundee industries, banks, insurance, hydropower, business, and real estate.