--By Gaurav Aryal

 

Sakya Group is a journey from gold craftsmanship to the glittering hospitality business. Sakyas of Kathmandu Valley have been known for their expertise in the jewellery business. Family of Bashanta Bahadur Sakya, one of the founders of the group was continuing the lineage of jewellery business and had a store at Ason of Kathmandu until early 1970s. When he turned colour blind, he had to deviate from his ancestral profession.

 

The journey of their business took a new turn with the establishment of Kathmandu Guest House (KGH) at Thamel in 1970s. Basanta Bahadur Sakya and his brother Karna Sakya turned their residential property, a Victorian palace built by Ranas into a 13 room hotel. Thamel then was a field where jackals roamed freely even during the day, say its promoters. KGH was followed by new hotels namely, Hotel Ambassador (1978), Marcopolo Business hotel (1998) and Club Himalaya Nagarkot (1998). Later, this joint-family split around the year 2000 and the KHG, a well-known brand, went to Karna Sakya while his nephews got some other businesses. 

 

The New Brand Journey

Yogendra Sakya, Chairman of Sakya Group, says it was painful to suddenly lose the KGH association and start fresh. He adds that it was painful also because he was personally looking after the KGH. Meanwhile, he invested in Ace Institute of Management and Ace Development Bank as one of the major promoters. He branded his hotels as Ace Hotels and Resorts. Currently, Hotel Ambassador Lazimpat and Chhauni, Marcopolo Business Hotel, Club Himalaya Nagarkot, Trek-O-Tel Hotel, The Tea House Inn and Shanti Ban Resort are in operation under this umbrella brand of Ace Hotels. Though he lost the KGH brand name, his expertise gained since 1970s as professional hoteliers remained intact with him. This proved to be strong base needed for advancing in the hospitality business.

 

One of the transformation during the rebranding process was promoting Ace Hotels and Resorts as a mid range hotels, a move from the image of budget hotel. Club Himalaya Resort is the signature hotel that assisted in this transformation. Sakya explains, “We are not five star hotels and we have targeted our brand at adventure tourists. We know that they don’t come for luxury. This is the market of Nepal and our speciality too.”

 

Sakya family invests and also manages the groups’ hotel wing while Sakya Investment Company makes investment in various sectors. According to Sakya, the company has invested in banking and financial sectors and they are one of the promoters in Nepal Investment Bank and Ace Development Bank. Likewise the company has investments in real estate as well as a printing press. Similarly, Idea Group has investment in the education industry through Malpi Group of Schools. Sakya says that the group’s total investment crosses Rs 1 billion and makes an annual turnover of around Rs 1.25 billion.

 

Business Expansion

The group is rebuilding Hotel Ambassador Lazimpat from the ground. The group demolished its building when the road expansion drive of Kathmandu needed to break a portion of hotel. Sakya says that the hotel will be built as a four star property in next two years. He reveals that Rs 300 million is invested in the rebuilding and he is expecting that the budget will cross its limit. Sakya says that he took the challenge as an opportunity and only the time will tell that it is for the better.

 

For the time being, guests of Hotel Ambassador, Lazimpat are accommodated at Hotel Ambassador, Chh auni. Sakya says that the buildings at Chhauni were designed as apartment for the Sakya family. But the need turned it into the hotel and he adds that it was mainly done to keep the Hotel Ambassador open for two years – until the construction completes at Lazimpat. However, Sakya says that he has plans to continue this property at Chhauni as an apartment hotel. Ambassador Chhauni has 25 rooms and 14 apartments.

 

The group has a couple of other hotels in the pipeline. Sakya says that the group had planned to complete Sakya Heritage Hotel targeting upmarket clients at Nagpokhari. The plan has been postponed because of the demolition of Ambassador that required priority to reconstruct. Along with that the group is planning to complete the resort project in Chitwan – Club Wilderness, after present projects are completed. Sakya says that the Club Wilderness project was postponed considering the surge in the number of new hotels and lodges in Chitwan.Stating that the project is not dropped, he adds that the resort will be built with a new concept of serving tourists especially visiting both Chitwan and Lumbini.

 

Sakya says that he wants to go step by step in the business rather than jumping at once into 10 hotel projects. “We start a business small and let it grow. Once it stands firmly on solid ground, we move forward,” says Sakya.

 

 

Opportunities Galore

Sakya believes that China and India are Nepal’s two economic giant neighbours, from where tourists can walk, fly or ride to Kathmandu. He predicts that these two countries will be the biggest tourism market for Nepal. “Nepal’s tourism was discovered. We never planted it,” he says expressing discontent with the tourism promotion strategy. He suggests that Nepal should be going directly to the consumers when it comes to promotion rather than to the tour operators. “There is a huge untapped market for us.  If we can explore Chinese and Indian markets, we can bring two million tourists every year. The only challenge is in finding way to reach the consumers,” 

he adds. 

 

The trend of bringing international chain hotel brands has revived in Nepal with big names like Marriot and Sheraton landing in Nepal soon.  However, Sakya rules out the possibility of his group’s partnership with an international brand.“You don’t have to borrow international name to succeed. Rise of the Internet, and e-marketing, has enabled clients to analyse features of local brand right on their devices. Local names too can be sold through this channel. Individual products can be directly brought to the customers attention and sold well.” At present, 20 per cent of total sales in the tourism industry are made through online booking, says Sakya. He explains that there are big opportunities for local products for creating independent brand name. “We would like to make our own hotel chain at the domestic level, if not international,” adds Sakya.