CG Hospitality Opens Nepal to High-end Tourism with Leading Marriott Brands, Ritz Carlton and Westin 

Marking a significant step in expanding their luxury and premium hospitality footprint, anticipated to open in 2031 and adding nearly 450 keys to the company’s portfolio, including the third, a JW Marriott in India’s Siliguri, these are poised to become coveted addresses for discerning travellers and residents. 

CG Hospitality Global is Nepal’s largest and most diversified multinational conglomerates, with interests spanning hospitality, FMCG, financial services, cement, electric vehicles, telecom, education, infrastructure and real estate, amongst others. Headquartered in Nepal, the company is deeply committed to supporting the country’s long-term tourism and economic growth, while helping position Nepal as a globally recognized travel and hospitality destination.  

What marked the signing with special significance was the presence of David Marriott, Marriott International’s Chairman of the Board, and grandson of the founder, who is not known to be around for occasions like these, being undertaken every other day in one or the other part of the world. Representing CG Hospitality was Dr Binod K Chaudhary, Chairman, and Rahul Chaudhary, Managing Director & CEO CG Corp Global & CG Hospitality Global. Rajeev Menon, President, Asia Pacific excluding China, Marriott International and Kiran Andicot, Senior Vice President, South Asia, Marriott International represented the global major. 

“We are pleased to deepen our association with CG Hospitality Global through a shared vision to bring world-class hospitality experiences to these high-potential markets” said Rajeev Menon, President, Asia Pacific excluding China, Marriott International.  “These landmark developments reflect the exceptional standards and brand excellence that define Marriott’s luxury and premium portfolio, while contributing meaningfully to tourism growth, local employment and regional economic development. Backed by CG Hospitality Global’s strong market expertise and long-term commitment to Nepal, we are confident these hotels will emerge as defining hospitality destinations in the region”.

Here, the two are in conversation with BITB Magazine’s editor, Navin Berry, on the larger play for the CG Group. 

The conversation started with Binod Chanudhary, with Rahul joining in between. Excerpted below: 

What’s the present count for Fern, Series by Marriott? 

As far as I remember, it is about 180 or 190 hotels opening or opened or already in the pipeline. Now Fern has also become an asset-heavy company. We are buying hotels of our own, earlier it was just a management company.

I think they recently finalized the 6th hotel, 6 hotels now Fern owns, apart from managing these and the road map is 500 hotels in the next 3 to 4 years. That’s a big, big thing. 

Secondly, our partnership with Marriott is in the Farm, which is an iconic wellness destination in Philippines. So, already this has become part of the Autograph Collection luxury portfolio and the plan is to open 20 Farms with them all over the world. 

20 Farm type experiences globally? 

Yes, globally. Some will be stand-alone, some will be attached to an existing Marriott portfolio. These are too very high-end property collections, but they also allow you to continue to have your brand, like the Farm Autograph Collection. 

So, the third partnership that we have entered into with them is in Nepal, which is a very big one. We are opening Ritz-Carlton in Nepal. We are opening Westin in Nepal. Both these are going to be iconic properties in Nepal.

With these properties, I think Marriott will have almost all their brands present in this country, which is a very big thing. 

So, what is the timeline for the Ritz-Carlton? 

Three years from now, the ground-breaking has already happened. And we also signed yesterday the JW Marriott in Siliguri. So, that is going to change the entire landscape, the hospitality scene of Northeast and the East.

You will have a hub property for all these territories. The gateway to Nepal is already there. The gateway to Northeast is already there.

Siliguri, as you know, is becoming big with an airport opening. And you would have heard super-fast trains from Delhi will connect to Siliguri, as has already been announced.

(At this point in time, his son Rahul joins the interview.)

Rahul, can I congratulate you in front of your father? I was feeling such a sense of pride listening to you. Daddy’s pride must have been a 100-times more than mine.

Rahul has done a great job. And Rahul has made the family and the whole hospitality industry in this country very proud. You know, it is all over the media, all everywhere.

Right from the Prime Minister to everyone is so thrilled that we were able to bring David Marriott to Nepal, and to sign Ritz Carlton and the same goes for JW Marriott in Siliguri. To have a JW Marriott in Siliguri is no joke. 

We are working on the JW Marriott residences, the first one in Dubai, which was launched last year. We launched the project. The construction is going on. It’s all high-end residences. The first one is under the name JW Marriott. 

We are also going to sign a portfolio of boutique hotels, high-end boutique hotels in China under the Series by Marriott brand. 

How many hotels would this envisage? 

So, we are starting with four, but the MOU that we are signing is for 100 hotels in 10 years. 

That’s huge. What’s more in the pipeline?

And like they launched the Series by Marriott on the backdrop of Fern in India, they are launching the Series by Marriott on the backdrop of our brand there in China on the 22nd of June. So, another aspect of these signings is that have become the largest partners of Marriott in Series by Marriott globally.

With all this accumulation, do you also become one of their biggest partners for Marriott, overall? 

I guess so. I think with India, China and with so many, I think we must be one of the biggest partners. Our presence should be significant, in every which way, I should think.

In the context of Destination Nepal, it has over time suffered from not being adequately recognized for its luxury quotient. When so much is happening, which is both experiential and truly luxurious, the announcement of big brands such as Ritz Carlton, that should open the eyes of the world to Nepal as a luxury destination.

It is for me the big step forward in recognition of the luxury quotient of Nepal. 

How can the destination promote itself more aggressively on the luxury front? 

I think this had been lacking. It’s a huge statement for the destination and in the interest of Nepal that David Marriott was present here while Marriott signed the Ritz Carlton. It’s a global breaking news for the hospitality industry. And particularly after the Gen Z movement, we have a new government, as I said in my statement.  And a young Prime Minister. The country is in the transformative phase. It’s going through a phase of complete realignment of all our policies, strategies, economic roadmaps, development, and bringing in a sense of efficiency, bringing in a sense of confidence in the investors, as well as travelers to visit the country, for all reasons, for new airlines to come online.

Hopefully, you must have read recently in India, in the Hindustan Times, the president of the ruling party laid down the eight scenarios of cooperation with India. Which includes opening of the Pokhara as well as the Lumbini airport shutdown, which will connect the second-tier cities of India. Just imagine if Udaan scheme is brought to Nepal through these airports, what does it mean? To bring in 5 million people from India would be not a big deal.

We have been championing this cause for the last 3-4 years, that the Udaan scheme should be made available for neighboring destinations to promote regional tourism in our subcontinent! 

That’s what we’re working for. And we believe that’s a win-win situation. And that’s how it should be.

So, comprehensively, how many hotels are there in the pipeline, how many you own, and what is the roadmap, by when you will have, how many hotels more? 

Rahul: So, in terms of the Concept Hospitality, so we have now 196 hotels. As of today, out of which we have close to 130 operating. Now, out of that 130 operating, we have close to about 95 to 96 hotels that are Fern. And we have already signed, as we speak, close to 58 more hotels. With operating and with signed, and we are adding literally, till last year, we were opening almost about 30 hotels every year. But this year, we are looking at opening close to 55 to 60 hotels.

What kind of room strengths would these be? 

So, we are now targeting minimum 100 keys, but we have moved up to an average of 75 rooms per hotel now.  So, we are on target to get to 500 hotels by 2031 for Fern.

Will this entail some aggressive takeovers? 

We are already investing in some assets. We have already done 5 new acquisitions, which are majority acquisitions. Plus, we have 7 revenue share assets.

And we want to take this company to an IPO by 2030.

So, tell me on tourism in Nepal right now, how is it looking? 

So, encouraging. I would say encouraging. The mood is quite positive. And, you know, the finance minister also stressed quite openly on his agenda in terms of bringing newer and bigger investments into the country by international players. And he actually urged David Marriott and his team to make sure that that they position, or rather reposition Nepal on the global tourism map, which obviously they are now going to work towards doing.

But I would say the whole emotions and the confidence level is much higher than what it was. And that’s quite evident now. But of course, one has to work towards the infrastructure as well. I think steps will be taken towards that soon enough. 

As you know, we have what must be the youngest cabinet team globally? All of them, the prime minister, the party president, all of them are around 40 years old. Nepal is changing. Absolutely, it is changing.

Rahul, anything else you want to add, which we have not covered? Anything more on the luxury part of Nepal? 

I would just state that, I’m sure my father must have said it already. This deal with Marriott it just also exemplifies and resonates with how much importance they give to these newer markets as well as partnerships, you know. That’s what I would like to say. And for him to come down just, I mean, to Nepal to showcase this agreement, is a game changer for Nepal itself.