Kathmandu. Vegas City Entertainment Pvt. Ltd., which operates a five-star casino integrated resort hotel in eastern Nepal, has made significant commercial improvement in recent years. <\/p>\n
ICRA Nepal has assigned ‘L-Double B’ rating to the company’s long-term credit facility, stating the positive growth in earnings, operational efficiency and market potential. <\/p>\n
The company has achieved an average annual growth of about 33 percent in the last three years, compared to the last fiscal year 2081. In 1982 alone, the revenue increased by about 52 percent. Operating income increased to Rs 44.40 crore from Rs 18.70 crore. <\/p>\n
The hotel has been operating on an integrated model of hotel and casino and has been upgraded from 102 to 205. In addition, rental income from casinos and attracting visitors from the Indian border market have boosted business income. <\/p>\n
Its operating profit rate is stable in the range of 57 to 58 percent. The interest bearing ratio has reached 2.5 times. Last year, it was 1.6 times. The loan repayment capacity has increased by 1.8 times. It was 1.3 times in the previous year. <\/p>\n
Mechi Crown Hotel is the first five-star casino resort in eastern Nepal, which is close to the Nepal border. It is located 15 km from Chandragadhi Airport and about 26km from the border Indian Airport Bagdogra. Attracting customers, especially from the Indian states of West Bengal and Bihar, has been an important factor for the business. In addition, the company’s promoters’ experience in other sectors such as hydropower, construction and aviation has also boosted business confidence. <\/p>\n
While operating indicators have improved, the valuation indicates that the debt burden remains high. <\/p>\n
Since the company’s entire business is concentrated in a single hotel, the geographical risk is high.\u00a0About 31 percent of the total revenue comes from casino bookings. Since gaming is banned in Nepal, the company is dependent on Indian customers. In India, there is a risk of reducing customer flow if gaming rules are eased in the future. <\/p>\n
The cost of construction of this hotel is Rs 1.05 crore per room and the average loan per room is Rs 59 lakh. This seems to be challenging cash flow management in the long run.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Vegas City Entertainment Pvt. Ltd., which operates a five-star casino integrated resort hotel in eastern Nepal, has made significant commercial improvement in recent years. ICRA Nepal has assigned ‘L-Double B’ rating to the company’s long-term credit facility, stating the positive growth in earnings, operational efficiency and market potential. The company has achieved an average […]<\/p>\n","protected":false},"author":5,"featured_media":287849,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45077,45159],"tags":[],"class_list":["post-287851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-corporate-2-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=287851"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287851\/revisions"}],"predecessor-version":[{"id":287852,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287851\/revisions\/287852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/287849"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=287851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=287851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=287851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}