Kathmandu Marriott distributes Rs 28m in bonuses to staff amid recession

KATHMANDU: Many industries are suffering losses amid the recession. However, Kathmandu Marriott Hotel has succeeded in distributing bonuses to its staff. In just five years of operation, the hotel has distributed bonuses totalling Rs 28 million.

The five-star hotel, operated by Everest Hospitality and Hotel Ltd under the MS Group, has distributed 10% of its profits as bonuses. Despite challenging circumstances, the hotel has managed to distribute bonuses, a success that Chairman Shashi Kant Agarwal attributes to the 'three-pillar support' — diligence of the staff, management of Kathmandu Marriott, and joint efforts of investors.

Chairman Agarwal expressed his delight in being able to share a portion of the income and success with the staff. He commended the staff at the Kathmandu Marriott for their dedication and success, which has resulted in them receiving rewards for their hard work during the Covid 19 pandemic.

Even though the Supreme Court decided to abolish the service charge for the staff last year, the hotel has implemented alternative measures, providing them with an additional amount instead of the service charge.

The Kathmandu Marriott has begun allocating a portion of the income as a substitute for the service charge the staff would have received, despite the removal of service charge from customers. The hotel consistently pays this amount to the staff, who are receiving between Rs 30,000 and Rs 32,000 per person per month as an alternative to the service charge.

Chairman Agarwal stated that the hotel reduced the loan by selling property to make the hotel's instalments more manageable during the pandemic. This has resulted in a decrease in the interest to be paid, as the loan principal dropped, thereby increasing the profit. "As the debt of Rs 2.25 billion has been reduced since the pandemic, we have been able to give bonuses to the staff as the amount to be paid as interest lowered and the remaining amount turned into profit," said Agarwal.

Gaurav Agarwal, Managing Director of Kathmandu Marriott Hotel, shared that Fairfield by Marriott Kathmandu has also distributed bonuses to the staff for the first time, along with Kathmandu Marriott Hotel.

"After seven years of operation, we have been able to share a portion of the profit with the staff," said Managing Director Agarwal. "The hotel has been able to earn a profit due to the staff's hard work amid competition. Fairfield has distributed Rs 2 million bonus to the staff."

The Kathmandu Marriott Hotel employs 332 individuals, while Fairfield Marriott has 87 staff.