Leela Palaces, Hotels and Resorts and developers Summit Group of Nepal have signed a memorandum of understanding to collaborate on the first of four hotels to be established across the country as part of a major development rollout.

The five-star Leela Kathmandu – to be designed by John Gerondolis of Smallwood, Reynolds, Stewart, Stewart & Associates of Atlanta, US – will be the first hotel created by the partners, to capitalise on tourism in India and Nepal.

The Indian Leela Group plans to pave a Buddhist Trail from Nepal to Bodhgaya, Nalanda and Varanasi in India. After the Leela Kathmandu is completed in three years time, the next hotel in the Nepalese series will be created in Lumbini, the birthplace of the Buddha. Another hotel is being planned by Leela in Nepal’s Pokhara.

While details of the Kathmandu property’s spa and fitness studio are yet to be revealed, Gerondolis is expected to incorporate the rich Newari culture into the design of the hotel. Gerondolis has previously created the Leela Palaces in New Delhi and Chennai and he is currently working on the Leela Palace Agra – where every room will offer a view of The Taj Mahal.

“[The Leela Kathmandu] will be even brighter if Nepal augments its infrastructure in terms of enhanced hotel accommodation, world-class airports and highways,” said Vivek Nair, chair and managing director of The Leela Palaces, Hotels and Resorts. “Given the potential of tourism worldwide, we look forward to expanding our footprint in India and overseas.”

Nepalese Prime Minister Sushil Koirala urged the Leela Group to establish hotels in other parts of Nepal. Both Koirala and his Indian counterpart, Prime Minister Narendra Modi, have shown an interest in developing tourism across the member nations of the South Asian Association for Regional Cooperation (SAARC). For example, in November 2014, India’s nationalist government launched a campaign to promote the country’s ancient Ayurvedic therapies.