This study aims to investigate the impact of the COVID-19 pandemic on the operations and financial performance of star hotels in Nepal, while also exploring their survival strategies. Employing a mixed-methods approach within a descriptive research design, primary data were gathered through surveys and interviews with hotel operators and managers. Secondary data were sourced from annual reports of selected hotels. Qualitative information was analyzed using thematic analysis grounded in grounded theory, while descriptive statistics were employed for the secondary data. The findings indicate that one-star and two-star hotels were severely affected by the pandemic, followed by three-star, four-star, and five-star hotels. Operations and net profits saw significant declines, accompanied by substantial increases in the cost and scarcity of inbound materials. The supply chain experienced severe disruptions.Although the pandemic did create opportunities for renovation, repair, and planned maintenance, the benefits derived were minimal. Hotels adopted a diversification strategy with a focus on cost-effective differentiation. The research revealed limited government support for necessary operations. This study addresses critical dimensions of the pandemic's impact, including profitability, operational costs, supply chain management, human resources, and strategic actions within Nepalese star hotels. It provides valuable insights for policymakers, hotel entrepreneurs, and readers, contributing to the knowledge base in this field.

Keywords: COVID-19 pandemic, Star hotels, Crisis, Hospitality industry, Cost-focused leadership strategy