Nepal’s hospitality and leisure industry has witnessed robust growth, buoyed by a rising global and domestic interest in travel and tourism. With its unique cultural heritage and natural beauty, Nepal attracts a diverse array of visitors, making tourism one of the largest industries in the country. This sector contributes significantly to national income and employment and, as such, enjoys both active encouragement and close oversight from the government. Hospitality businesses – hotels, resorts, restaurants, travel agencies, and adventure tourism operators – often benefit from incentives like tax holidays or subsidized loans, but they must also comply with specific regulations on service standards, pricing (for example, mandatory service charges), and employment (adhering to labor laws that are particularly relevant in a service industry). Furthermore, establishing or operating a hospitality venture can involve navigating foreign investment approvals, land-use permissions, and obtaining various permits (tourism operation licenses, liquor licenses, etc.) in a timely manner.

Gandhi & Associates has a long and distinguished record of advising clients in the hospitality and leisure sector. We have served as legal counsel to major hotels and hospitality groups in Nepal, providing guidance on the full gamut of issues this industry faces. Our team negotiates hotel management and franchise agreements for international hotel chains entering Nepal or local hotel owners partnering with global brands – ensuring that such agreements comply with Nepali law and achieve our client’s commercial objectives. We assist in due diligence and acquisitions of hospitality assets, helping investors assess legal risks related to land, licensing, and existing liabilities. We also obtain and renew essential permits and licenses, liaising with the Department of Tourism and other authorities on behalf of our clients. Given the labor-intensive nature of this industry, we frequently advise on employment matters, from drafting employment contracts compliant with hospitality wage and gratuity regulations to resolving labor disputes or union negotiations. In all our work, our deep familiarity with Nepal’s tourism and hospitality landscape enables us to deliver solutions that are legally sound and operationally practical, allowing our clients to focus on delivering exceptional guest experiences.

Representative Experience:

• Serving for over two decades as legal advisor to the Hotel Association of Nepal (HAN), the umbrella body for the country’s hospitality industry. Our work has included representing HAN in collective bargaining negotiations with sectoral unions, successfully negotiating the introduction of a standardized service charge (gratuity) system for employees, advising on compliance with new labour laws, and supporting HAN in policy advocacy during the drafting of industry-specific provisions under the new labour legislation;
• Advised several leading Nepali hotels (including heritage and five-star properties) in negotiations of collective bargaining agreements with their labor unions, balancing compliance with labor regulations and the commercial need to maintain service continuity; and
• Advised both franchisees and franchisors in the hospitality sector on technology transfer and management agreements – for example, assisting local hotel owners in negotiating franchise and management contracts with international hotel chains, and securing necessary approvals from Nepali authorities for these agreements to take effect.