Vijay Nanmaran S is the General Manager of Mercure Kathmandu Sukedhara Heights, the first Mercure property in Nepal. With over two decades of experience in the hospitality industry, he brings deep expertise in operations, revenue growth and guest satisfaction to Mercure Kathmandu. His career spans leadership roles in renowned hotel chains, including The Soaltee Kathmandu, InterContinental Hotels Group, Starwood, and ITC properties across South Asia and the Middle East. As General Manager of Soaltee Hotel, Vijay led the entire rebranding following the conclusion of its management contract with InterContinental Hotels Group (IHG) in May 2021. New Business Age caught up with Vijay to discuss his new role, strategy for Mercure Kathmandu, and his outlook on the future of Nepal’s hospitality industry. Excerpts:

What made you join Mercure Kathmandu? How do you plan to leverage your experience to elevate Mercure Kathmandu’s position in the hospitality industry?

With over two decades of experience in the hospitality industry, I am committed to positioning Mercure Kathmandu as a premier destination by enhancing guest experiences, optimizing operational efficiency and implementing strategic marketing initiatives. My extensive background with globally recognized hotel brands has provided me with the expertise to elevate service standards, drive revenue growth and cultivate a culture of excellence within the team. I was drawn to Mercure Kathmandu due to its affiliation with the Accor brand and the opportunity to contribute to the advancement of Nepal’s thriving tourism and hospitality sector. The country's rich cultural heritage, dynamic market potential and growing appeal as a travel destination make this role particularly compelling. I look forward to leveraging my experience to further strengthen Mercure Kathmandu’s market position and deliver exceptional hospitality experiences.

Please tell us more about Mercure and what sets it apart.

Accor operates over 5,700 hotels in more than 110 countries across luxury, premium, mid-scale and economy segments. Mercure, positioned in the mid-scale category globally, operates as a five-star hotel in Nepal. Typical Mercure hotels feature rooms, meeting spaces and all-day dining, with some not even having swimming pools. However, Mercure Kathmandu has 104 rooms in four categories, multiple banquet and meeting spaces, and five food and beverage outlets, including an Italian casual dining restaurant, a rooftop infinity pool bar and an upcoming Indian specialty restaurant.

There has been a surge in star hotels in major towns of Nepal, including Kathmandu, over the past decade. How do you see this evolution and what key trends do you see shaping the future of Nepali hospitality industry?

Since 2017, I have witnessed remarkable growth in Nepal’s hospitality industry, with a significant surge in the development of star-rated hotels across major cities, particularly in Kathmandu. This expansion reflects Nepal’s increasing appeal as a global travel destination, driven by its rich cultural heritage, natural beauty and growing infrastructure. The influx of international hotel brands has elevated service standards, introduced global best practices and contributed to the overall professionalization of the sector. However, with increased competition, differentiation through unique guest experiences, personalized services and strong brand positioning has become more critical than ever.

Looking ahead, several key trends will shape the future of Nepal’s hospitality industry. Sustainable tourism will play a pivotal role, with eco-friendly practices, responsible tourism initiatives and locally sourced experiences becoming central to hotel operations. Digital transformation will continue to enhance guest experiences through seamless booking platforms, contactless services and data-driven personalization. The rise of experiential travel will also influence the industry, as more travelers seek immersive cultural, adventure and wellness experiences. Additionally, domestic tourism is expected to grow as Nepal’s middle class expands, creating new opportunities for the hospitality sector. To remain competitive, hotels must adapt to these evolving trends by embracing innovation, sustainability and guestcentric strategies.

How would you assess the current state of Nepal’s hospitality market, and what specific niche does Mercure Kathmandu aim to fill? What unique offerings will it bring to Nepal’s tourism and hospitality sector?

Nepal attracts a broad spectrum of travelers, each with distinct interests and preferences. Adventure enthusiasts are among the most prominent visitor groups, drawn by worldrenowned trekking routes such as the Everest Base Camp and Annapurna Circuit. Spiritual and cultural travelers arrive in search of enlightenment and heritage experiences, exploring Nepal’s revered temples, monasteries and UNESCO World Heritage Sites. Wellness and leisure travelers are increasingly seeking retreats that offer yoga, meditation and holistic healing experiences in the serene Himalayan setting. Nepal is also an ideal destination for those looking to escape into a peaceful and rejuvenating environment, providing a break from the hustle and bustle of daily life. It is equally wellsuited for business and remote work, offering an inspiring atmosphere that blends productivity with tranquility. With its diverse offerings, Nepal caters to a variety of traveler demographics, ensuring that everyone—whether seeking adventure, culture, relaxation or work—can find something meaningful and fulfilling in the country.

Could you outline Mercure Kathmandu’s business strategy for the Nepali market and how it aligns with the brand’s global objectives?

Nepal’s tourism industry is experiencing a transformative phase; it is evolving beyond its traditional reputation as an adventure and spiritual destination. The luxury hospitality sector is witnessing a significant surge, driven by an increasing demand from high-net-worth individuals and discerning global travellers seeking exclusive and immersive experiences. The introduction of premium international hospitality brands, boutique hotels and luxury resorts has contributed to the elevation of Nepal’s tourism standards, positioning the country as an emerging destination for luxury travel.

Looking ahead, Nepal is set to further enhance its tourism offerings through strategic investments in infrastructure, sustainability initiatives and experiential travel. The expansion of luxury hospitality brands, a growing focus on eco-tourism and the increasing popularity of curated cultural and adventure experiences will further strengthen Nepal’s appeal to international travellers. Personalized luxury experiences, including private guided treks, helicopter tours and heritage stays, are gaining traction among affluent travellers looking for exclusivity and authenticity. Additionally, Nepal’s commitment to sustainable tourism is playing a crucial role in shaping the future of luxury travel in the region, ensuring that high-end experiences do not come at the expense of the environment. With its unique balance of world-class hospitality and authentic Nepali experiences, Mercure Kathmandu is well-positioned to play an important role in shaping the country’s evolving tourism landscape, offering guests an unparalleled blend of luxury, culture and sustainability.

What sets Mercure Kathmandu apart from its competitors?

Mercure Kathmandu Sukedhara Heights is Accor’s first hotel in Nepal. It distinguishes itself from other properties in terms of guest experience, architecture, design and services. Its overall guest experience is crafted to offer a journey of discovery starting from the arrival at the hotel. The guests are welcomed with warmth and personalized service, ensuring a seamless stay, combined with comfort and cultural immersion, providing a perfect balance of relaxation and exploration. With 104 meticulously designed rooms featuring ample natural light and stunning views of the city, surrounding mountains and the majestic Himalayas, Mercure Kathmandu Sukedhara Heights sets a new benchmark for hospitality in the region. The unique offering include iconic rooftop infinity pool and lounge, one of the few in the city, complemented by a large LED screen for a unique relaxation and entertainment space, a panoramic 180-degree views of Kathmandu’s skyline and the Himalayas, with stunning sunrise vistas and the state-ofthe-art fitness center featuring steam and sauna facilities.

Strategically located, just 4 km from Tribhuvan International Airport, the hotel provides easy access to major landmarks, embassies and popular tourist destinations like Bouddhanath Stupa, Thamel and Durbarmarg. Guests can enjoy diverse dining options, from international cuisine at our all-day DYNE restaurant to authentic Indian specialties at Zaiqa. Sopra Italiano serves traditional Italian dishes, while The Kove lobby bar offers a mix of local and international beverages. Sukra Bar provides a sophisticated rooftop lounge setting with panoramic views and both indoor/outdoor seating.

We are also committed to offer personalized services including sustainable experiences. Likewise, we have implemented a range of initiatives, including no single use plastic items, energy and water conservation measures, sourcing local ingredients, engaging with local communities, and prioritizing employee well-being.

Could you elaborate on Mercure Kathmandu’s pricing strategy and how it adjusts to market demand fluctuations and occupancy levels?

Local brands often have strong loyalty among customers due to their established reputation and also competitive pricing. However, the market has opened up for international hospitality brands too. We saw the opportunity and wanted to get into the segment early on to build loyalty amongst domestic as well as international travellers.

At Mercure Kathmandu Sukedhara Heights, we stay ahead of industry trends by regularly analyzing market data, gathering guest feedback and adapting our offerings to meet the evolving needs of today’s travelers. We embrace the latest technologies, prioritize sustainability and focus on delivering personalized experiences that resonate with modern, discerning guests. This approach ensures that we remain aligned with the expectation of the travellers and also the locals.

Sustainability is an increasing priority in hospitality. What initiatives will you implement to ensure Mercure Kathmandu remains environmentally responsible?

Sustainability must be at the core, with responsible tourism practices, energy efficiency and waste reduction becoming industry standards. Investing in world-class infrastructure, seamless connectivity and smart hospitality solutions—such as AI-driven guest services and digital integrations—can enhance efficiency and guest satisfaction. Upskilling the hospitality workforce through global collaborations and training initiatives will ensure service excellence remains a defining factor. By integrating these strategies, Nepal can elevate its position as a preferred destination for both business and leisure travelers, driving long-term growth and global competitiveness.

What challenges do you foresee for the new properties launched in Nepal over the past two years?

Launching a new property is like nurturing a newborn—it demands market expertise, strong industry connections and strategic positioning. The influx of new brands has heightened competition, often triggering rate wars. However, poorly planned pricing strategies can hurt owners, impacting profitability, operational quality and payroll budgets.

Road and air infrastructure remains another major challenge. Highways connecting key destinations like Pokhara, Chitwan and Lumbini are still under development. Many European travelers struggle to secure flight insurance due to safety concerns, forcing them to endure long and unreliable road journeys. Renovations at Tribhuvan International Airport have reduced flight operations, driving up ticket prices. Similarly, high airfare continues to deter Indian travelers—one of Nepal’s key tourism markets—further affecting inbound travel. To improve accessibility, flight frequencies must increase and airport operations should run 24/7. Airfare also needs to be more budget-friendly. Additionally, international hotel franchises like Mercure and Marriott face steep royalty fees, challenging their operational sustainability. Global brands enter Nepal seeking profitability, but if the financial model proves unviable, they may shift to franchise models or scale back their presence.

Post-COVID, hoteliers in Nepal have been struggling to retain experienced staff and recruit new talent. How is Mercure Kathmandu managing its workforce in this demanding environment?

Finding and retaining skilled talent remains a significant challenge in Nepal’s hospitality industry. Hotels frequently poach employees from one another, resulting in high turnover. As a result, many employees gain fragmented experience rather than deep expertise. Competitive salaries and structured career paths can help reduce attrition. Additionally, the COVID-19 pandemic disrupted traditional employment patterns, while Gen Z’s approach to work differs from previous generations—they prioritize flexibility, career growth and a supportive work environment.

At Mercure Kathmandu, we focus on structured career progression, providing fast-track growth opportunities and global mobility within Accor. We maintain a minimum of 25% gender diversity, with women holding 50% of our head-ofdepartment positions. We also actively recruit employees with disabilities. To promote a healthier work-life balance, our HR policies provide six weekly days off, compared to the industry standard of four.

(This interview was originally published in  April 2025  issue of New Business Age Magazine.)