IHG Hotels & Resorts has signed a management agreement with Club Chaulani Ltd. to develop Holiday Inn Dhangadhi, a 115-key hotel planned for western Nepal. Announced on Dec. 23, 2025, the project marks IHG’s first entry into Nepal’s Sudurpashchim Province, with the hotel scheduled to open in Q1 2028.
The new Holiday Inn will be located in the heart of Dhangadhi within a mixed-use development, about 8.5 kilometres from Dhangadhi Airport and close to the India–Nepal border. IHG says the signing reflects its strategy to expand in high-potential, underserved markets across South Asia, targeting both domestic and cross-border travel demand.
IHG expands into an emerging market in western Nepal
Dhangadhi is the largest city in Nepal’s Sudurpashchim Province and serves as a key commercial and administrative centre for the country’s far-western region. Its proximity to India positions it as a transit hub for cross-border trade and travel, while recent infrastructure improvements have supported growing business and tourism activity.
IHG describes the city as an emerging hospitality market with strong fundamentals. “Dhangadhi represents an emerging hospitality market with strong fundamentals driven by improving infrastructure, cross-border trade, and rising domestic travel,” said Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts. “The signing of Holiday Inn Dhangadhi reflects our confidence in the city’s growth potential.”
The hotel is expected to cater to a broad mix of guests, including business travellers, government officials, and transit passengers, as well as leisure travellers exploring western Nepal. Nearby attractions include Shuklaphanta National Park, known for its wildlife and grasslands, Ghodaghodi Lake, a Ramsar-listed wetland, and the Shivpuri Temple, a regional pilgrimage site.
By choosing a central location within a mixed-use development, IHG aims to capture year-round demand across multiple segments. The company says the hotel’s position will allow it to benefit from both local activity and cross-border movement, reinforcing its relevance beyond seasonal tourism.
Holiday Inn is one of IHG’s most established brands, with more than 1,200 hotels open worldwide. The brand has evolved over decades to serve modern travellers seeking consistent quality, approachable service, and functional amenities across business and leisure stays.
Hotel features and partnership strategy
Holiday Inn Dhangadhi will feature 115 guest rooms and a range of food and beverage options, including an all-day dining restaurant, a pool bar, and a specialty restaurant. The hotel will also offer meetings and events facilities, including flexible function spaces and a ballroom aimed at corporate events, conferences, and social gatherings.
Additional amenities will include a fully equipped fitness centre and a swimming pool, aligning with Holiday Inn’s focus on delivering a well-rounded guest experience. IHG says the property will uphold the brand’s emphasis on dependable comfort and guest-centred service while responding to local market needs.
Club Chaulani Ltd., the hotel’s owner and development partner, says the project addresses a clear gap in Dhangadhi’s hospitality landscape. “We are pleased to partner with IHG Hotels & Resorts to introduce the Holiday Inn brand to Dhangadhi,” said Dr. Rajendra K.C., Chairman, Club Chaulani Ltd. “As the city continues to grow as a commercial and tourism gateway in western Nepal, there is a clear opportunity for high-quality branded hospitality.”
The partnership reflects IHG’s broader growth strategy in South Asia, where international hotel groups are increasingly targeting secondary cities rather than focusing solely on established metropolitan destinations. Rising domestic travel, government investment in regional infrastructure, and cross-border business activity are reshaping demand patterns across the region.
For Nepal, the arrival of a globally recognised midscale brand in Sudurpashchim Province signals growing confidence in destinations beyond Kathmandu and Pokhara. Branded hotels are often seen as catalysts for wider tourism development, helping to attract corporate travel, events, and international visitors who prioritise brand familiarity.
IHG says Holiday Inn Dhangadhi is expected to play a role in shaping the region’s branded hospitality market while supporting the city’s long-term economic development. With an opening targeted for early 2028, the project adds to a pipeline of hotel investments aimed at strengthening Nepal’s accommodation offering as travel demand continues to diversify.
