Hotel and Tourism Shares Rise Despite Per-Share Losses

The hotel and tourism sector index on the secondary market surged the most on January 25, climbing 3.35 percent, significantly higher than the overall market increase of 2.12 percent. The strong performance indicates growing investor interest in companies under the hotel and tourism group.

Investor attention has been increasing recently toward shares of hotel and tourism companies. Among the seven listed companies in the sector, only Bandipur Cable Car has a share price exceeding Rs 1,000. On January 25, Bandipur Cable Car’s shares rose 10 percent, or Rs 98 per share, to close at Rs 1,078.

Among the sector’s companies, City Hotel is the only one priced below Rs 500 per share, at Rs 498.30. All other companies are trading above Rs 500. Based on the January 25 trading, share prices of other companies were as follows: Taragaon Regency Hotel (Rs 760.10), Oriental Hotel (Rs 739.80), Chandragiri Hills (Rs 909.50), Kalinchok Darshan (Rs 820) and Soaltee Hotel (Rs 508.50)

Regulators and financial experts have long advised investors in the secondary market to consider a company’s financial health and returns before investing. Recently, investors have also been giving weight to technical analysis. However, the rising share prices in the hotel and tourism sector suggest that many investors are overlooking these fundamentals.

Bandipur Cable Car, which issued shares to the general public on September 15 and was listed on the secondary market on November 5, has led the sector in price growth, surpassing other companies. Despite a per-share loss of Rs 3.60 until the end of fiscal year 2081/82 (FY 2024/25), the stock has attracted strong investor interest, indicating limited attention to the company’s financial performance. As of mid-July 2025, Bandipur Cable Car had a net loss exceeding Rs 92.6 million, and it has not yet published subsequent financial statements.

The next highest-priced company is Chandragiri Hills, trading at Rs 909.50 per share. The company reported a per-share loss of Rs 0.81 in the first quarter of the current fiscal year but distributed a 5.26 percent dividend during the period.

Soaltee Hotel, which distributed the highest dividend in the sector, has a share price of Rs 508.50. It posted a net profit of over Rs 123.5 million in the first quarter, making it the only company in the group with positive earnings per share (EPS) of Rs 1.21. In contrast, other companies reported per-share losses: Kalinchok Darshan Rs 0.56, Taragaon Regency Hotel Rs 1.21, Oriental Hotel Rs 2.05, and City Hotel Rs 2.08.