KATHMANDU: Hyatt Regency Kathmandu has announced a temporary suspension of all operations after the five-star property suffered extensive damage during the Gen Z protests that swept across Nepal on September 8–9.

According to a notice issued by the hotel’s Human Resources Director, Mohammad Yusuf Yamin, the vandalism and arson incidents caused serious structural harm, forcing the hotel to begin urgent repair and reconstruction work. 

“Considering the security sensitivity and risks involved, the hotel will remain completely closed until further notice,” the statement read. Staff have been instructed not to report to work until a new notice is issued, pending discussions with the hotel’s trade union representatives.

Following the closure, Prime Minister Sushila Karki expressed concern over the shutdown and the restriction on staff entry. On her directive, Finance Minister Rameshwar Khanal met with Hyatt’s management on Saturday, assuring full government support to help the property resume operations.

“You need not be alarmed,” Minister Khanal told the management. “Operate with confidence — the government will ensure your security and stability.” Further consultations are expected Sunday to determine the reopening plan.

The Hyatt is not the only hotel affected by the Gen Z movement, which initially began as a youth-led socio-political protest but spiraled into unrest in several urban centers. According to the Hotel Association of Nepal (HAN), around 30 hotels nationwide reported vandalism, fire, or looting during the demonstrations.

Among those damaged were the Hilton Hotel in Kathmandu, Hotel Sarowar in Pokhara, Varnabas Museum Hotel, Bagaincha Resort, and Pokhara Events Centre, along with multiple properties in Butwal, Bhairahawa, Jhapa, Morang-Biratnagar, Dhangadhi, and Dang-Tulsipur.

Industry insiders estimate that the hospitality sector has lost nearly 2,500 jobs due to the damages and temporary closures. The impact comes at a critical time when the tourism industry was beginning to recover from the economic strain of the COVID-19 pandemic and geopolitical uncertainties.

Tourism experts warn that if security and investor confidence are not swiftly restored, Nepal’s hotel sector, one of the pillars of its tourism-driven economy, could face prolonged setbacks ahead of the peak winter travel season.