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Radisson Hotel Kathmandu has strongly objected to reports suggesting that it was illegally stockpiling or hiding cooking gas, saying the narrative emerging during a government inspection has unnecessarily damaged the hotel’s reputation and created a misleading impression about its operations.

The objection came after officials from the Department of Commerce, Supplies and Consumer Protection conducted a routine market inspection at the Radisson Hotel in Lazimpat on Thursday afternoon. During and after the inspection, information circulated suggesting that the hotel had been storing gas cylinders in excess of its requirements.

However, the department itself has clarified that no irregularity was found in the hotel’s use or storage of LPG cylinders during the inspection.

Radisson Hotel Joint Managing Director Bidhata Shrestha said the hotel was disappointed that information suggesting gas hoarding had circulated while the inspection was still underway.

She said the hotel had not deliberately accumulated gas beyond its normal operational requirements and that the information circulating in the market had created an inaccurate impression that Radisson was unnecessarily concealing or stockpiling LPG cylinders.

“We have not been consuming or storing more gas cylinders than we normally use. But the information circulated in the market created an impression that we had unnecessarily hidden and stockpiled gas cylinders,” Shrestha said.

According to her, the Lazimpat-based hotel consumes approximately 20 LPG cylinders every day as part of its regular operations.

The hotel operates as an international five-star property with approximately 300 rooms, including apartments, restaurants and extensive banquet facilities, requiring uninterrupted kitchen and hospitality services.

‘We operate 365 days a year, 24 hours a day’

Shrestha said the nature of hotel operations makes the regular procurement and storage of cooking gas a basic operational necessity rather than an act of hoarding.

“We provide services 365 days a year, 24 hours a day,” she said, emphasizing that the hotel has to maintain adequate supplies of essential operational materials to ensure uninterrupted service.

The hotel also operates a lounge at Tribhuvan International Airport, where LPG is used for food preparation and catering services.

According to the management, its kitchen and hospitality operations require a consistent supply of cooking gas, particularly because the hotel cannot simply arrange additional cylinders immediately whenever demand rises.

Shrestha said the hotel needs to prepare well in advance for major bookings, including procuring essential items ranging from food ingredients such as salt and cumin to other operational supplies.

“When we receive bookings, we have to prepare all the service materials, from salt and cumin to other supplies, around 15 days in advance. It is not as if gas can simply arrive the next day whenever we need it,” she said.

She argued that maintaining an appropriate operational inventory should not automatically be characterized as stockpiling or hoarding.

Hotel says reputation was unnecessarily affected

The hotel management said the most concerning aspect of Thursday’s incident was not the inspection itself, but the information that emerged during the process.

Shrestha said Radisson has consistently operated according to international hospitality standards and has maintained its reputation as a major five-star hotel in Nepal.

“We are an international five-star hotel and have been operating according to the standards expected of our reputation,” she said.

She added that the hotel had also cooperated with the government during the COVID-19 pandemic, when it provided quarantine-related services in coordination with the authorities.

Shrestha said it was discouraging for a hotel that had supported the government during an emergency to now face a situation where information circulating during a routine inspection could damage its reputation.

“We worked hand in hand with the government and provided quarantine services during COVID-19 because hospitality is also an essential service sector. It is discouraging when, at this stage, conduct that affects the hotel’s reputation takes place,” she said.

She argued that spreading inaccurate information in a manner that could directly affect the hotel’s business and operations was neither fair nor justified.

Tourism recovery raises concern over hospitality sector

The hotel management has also expressed concern about the timing of the incident.

Nepal’s tourism and hospitality industry is preparing for increased tourist arrivals, and hotels are seeking to ensure that they can maintain uninterrupted services during the upcoming high-demand period.

Shrestha said actions or narratives that discourage hospitality businesses could have consequences beyond an individual hotel.

“At a time when the government is saying that tourism will be given high priority, how can the hospitality sector move forward if such allegations are made against it?” she questioned.

She said the hospitality industry needs encouragement, predictable regulations and smooth access to essential supplies rather than circumstances that could undermine the reputation of established international hotel brands.

Department says no irregularity was found

Importantly, the Department of Commerce, Supplies and Consumer Protection has clarified that its inspection did not identify any irregularity in Radisson Hotel’s LPG use or storage.

The department’s information officer and director Anil Kirati said the inspection was part of the department’s regular monitoring activities and was not initiated because of a specific finding of wrongdoing by Radisson.

According to him, the department inspected several major hotels on Thursday, including Soaltee, Everest and Radisson.

Kirati further said the inspection at Radisson did not reveal any irregularity regarding the hotel’s use or storage of LPG cylinders.

He also expressed surprise that information portraying the hotel as having committed an irregularity had circulated despite the department not making such a finding.

“This was a regular inspection carried out by the department. When we saw such rumors circulating about Radisson while we were inspecting different hotels, we were surprised ourselves,” Kirati said.

He added that the department had not made a decision declaring any irregularity at the hotel.

“When information about a decision that the department itself has not made is circulated in this manner, it affects the image of the hotel,” he said.

Routine inspection turns into reputation issue

The clarification from the department changes the nature of the controversy.

Rather than a confirmed case of LPG hoarding, the episode now centers on how information from a routine regulatory inspection was communicated and interpreted.

For the hospitality industry, the distinction is significant.

Hotels need to maintain inventories of food, fuel and other essential materials to ensure uninterrupted services to guests. Large properties operating restaurants, banquet facilities, room service and airport catering services may naturally require significantly higher quantities of cooking fuel than ordinary households or small businesses.

The hotel therefore argues that purchasing and storing LPG in accordance with its operational requirements should not be interpreted as deliberate hoarding without evidence of a violation.

Hospitality sector seeks clearer communication

The episode also highlights the importance of clear communication between regulators, businesses and the public during market inspections.

Government monitoring is essential, particularly when authorities are concerned about shortages, supply disruptions or possible hoarding of essential commodities.

But businesses argue that inspections should distinguish between legitimate commercial inventory and unlawful stockpiling.

For an international hotel brand, even an allegation that is later found to be incorrect can have reputational consequences, particularly when information spreads rapidly through social media and online news platforms.

Radisson management therefore believes that regulatory findings should be communicated accurately and only after the inspection process establishes whether an actual violation has occurred.

For now, the Department of Commerce, Supplies and Consumer Protection has said its inspection found no irregularity in Radisson Hotel’s LPG use or storage.

The clarification could help prevent the incident from developing into a wider misunderstanding, while also raising a broader question for regulators and businesses: how can effective monitoring of essential supplies be maintained without unfairly damaging the reputation of businesses that are operating within the law?

For Nepal’s tourism and hospitality industry, that balance will become increasingly important as international tourist arrivals rise and hotels prepare for higher demand.