Kathmandu, March 28:

The management of Yak and Yeti, a leading five-star hotel located in the heart of the capital, has announced today that it is going to reopen the hotel anytime soon.

The hotel which has remained closed for the last three months, has incurred a huge loss of over Rs 50 million, said Shiva Ram Thapa, president, corporate affairs. The hotel is now going to be operated as per the understanding reached between employee’s union and the management on March 26, said Thapa.

Thapa said that the hotel could not continue distributing bonus to its employees every year due to low turnout of tourists to Nepal. When the management of the hotel announced voluntary retirement scheme, 17 employees left their jobs alongwith due incentives, he said.

A total of 380 staff work at the hotel presently.

The hotel, however, is not going to open its doors to tourists unless the gate constructed by Nepal Industrial Development Corporation (NIDC) on the way to Yak and Yeti hotel from Durbar Marg is demolished, as it has been constructed against the agreement reached between NIDC and the hotel, claimed Thapa while talking to The Himalayan Times.

Despite the agreement, as per the document supplied by Thapa, is applicable till twenty years starting from 2001, NIDC did not agree. However, in between, NIDC breached the contract despite the hotel management had agreed to provide Rs. 50,000 annually to NIDC against the use of its road and increase the rent by 10 per cent in every five years, said Thapa.

Thapa also said that despite the hotel having been closed during December 2005 and January 2006, staff will be paid in full, according to their salaries. However, employees will not get their salaries and incentives starting from February 1 to March 10, as per the agreement.

The hotel was closed from December 24, 2005 till date.

Sanjay Joshi, general manager of Yak and Yeti, said that the misunderstanding between employees and the management has been resolved amicably.

Bishwo Subedi, general secretary of Employees’ Union said that employees are united to save the hotel from extinction.