KATHMANDU: Varnabas Museum Hotel, designed as a cultural hub that reflects Nepal’s rich diversity of four castes and thirty-six ethnic groups, has passed a special proposal during its first annual general meeting to initiate its Initial Public Offering (IPO).

This move signals the hotel’s strong potential as a future IPO candidate, positioning it alongside other successful ventures in the sector.

For instance, hill resorts near the Kathmandu Valley, established on leased community forests with cable car facilities, had an initial book value per share of less than 80 cents.

However, post-IPO, their shares surged to $25, offering investors substantial premiums.

This trend highlights the growing interest among Nepalese investors, eager to capitalize on reliable opportunities despite limited investment options.

In contrast to many hotel development companies that inflate costs by over 300% while operating alongside their own cement industries, steel companies, and banks, Varnabas Museum Hotel sets itself apart.

Unlike resorts that rely on deforestation and leased land, this five-star boutique luxury property is situated in the heart of Kathmandu.

It combines premium real estate ownership, world-class infrastructure, and exceptional cultural significance.

Before construction, the project received IEE approval and four-boundary clearance. It adheres to urban development standards, maintaining a 4-meter setback from the river on its southern side.

While there were attempts to discredit the project by alleging encroachment, government verification confirmed a setback ranging from 5.5 to 6.75 meters.

Additionally, the project contributed to the local community by rebuilding school buildings and nearby structures during its construction. No public roads or areas were encroached upon.

Varnabas Museum Hotel’s upcoming IPO offers a glimpse into the growing potential of the hospitality sector in Nepal, combining sustainable practices with solid investment prospects.

Features of Varnabas Museum Hotel:

1. Location and Architecture: Representing Nepal’s essence, with views of Mount Everest, Lhotse, and Nuptse.
2. Facilities: Includes the South Col Bar, Khumbu Valley, and the Gokyo Lake swimming pool.
3. Design and Classification: Floors categorized as Himal (mountains), Pahad (hills), and Terai (plains), reflecting Sherpa culture, Gorkha bravery, and Tharu artistry respectively.
4. Art and Culture: Rooms named after villages in the mountains, hills, and plains.
5. Climate Dialogue: Regular climate debate programs at South Col.

Why IPO?
Nepali investors are keen on investing in tangible assets like hydropower and green projects. Varnabas Museum Hotel, Nepal’s only museum hotel, offers a unique combination of cultural heritage and luxury, presenting an excellent investment opportunity.

Conclusion:
Varnabas Museum Hotel provides Nepalese investors with a culturally symbolic and economically secure investment. Its prime location, cultural importance, and luxury amenities make it a strong candidate for a successful IPO.

Stock Market Speculation vs. Real Business Value Creation:
The stock market is seen as a reservoir of opportunities where investors strive to grow wealth through share trading. However, its speculative nature often prioritizes short-term gains over sustainable economic growth.

Stock Market Speculators vs. Real Businesses:
While many market players focus on short-term profits, real businesses create value through production, services, and employment, contributing significantly to society and the economy. For example, a poultry farm or food processing industry transforms raw materials into consumable goods while creating local employment. In contrast, stock trading often depends on speculative price fluctuations rather than the actual performance of the company.

Purpose of IPOs and Misconceptions:
IPOs are effective tools for businesses to raise capital for expansion, innovation, and long-term growth. However, speculative businesses misusing IPOs can distort their true purpose.
Investors should focus on robust business models, long-term plans, and real asset valuations rather than being swayed by hype. Blind investments in IPOs of companies lacking concrete foundations can lead to significant financial instability.

Apple’s Initial Struggles – Importance of Long-Term Vision:
The early history of Apple highlights the tension between stock market speculation and innovation. Under Steve Jobs’ leadership, Apple prioritized innovation over short-term profit. However, in 1985, Jobs was ousted due to shareholder pressure for immediate profits. His eventual return underscored the value of strategic, long-term planning.

VinFast: A Case of Speculation:
Vietnamese EV manufacturer VinFast exemplifies the speculative nature of the stock market. Despite a soaring share price after its IPO, this rise was fueled by hype and speculation, not actual business profitability.

Crowdfunding and Sustainable Projects:
Platforms like crowdfunding significantly support businesses with long-term visions. However, ensuring proper use of such funds is crucial.
Risk management and a long-term perspective are essential to ensuring the stock market serves as a tool for sustainable economic growth rather than short-term speculation.

Conclusion:
The stock market can effectively raise capital and contribute to long-term economic growth. However, unchecked speculation can limit its potential to short-term gains.

For sustainable development, priority should be given to real businesses with strong infrastructure and long-term strategies. When the stock market aligns with genuine business needs, it can serve as a powerful tool for lasting economic growth.