The history of Dwarika's Hotel is intertwined with the life and times of its founder, Dwarika Das Shrestha. Dwarika was an extraordinary human being – a true visionary who was acutely aware of his own identity, the changing world around him and his responsibility towards it. His story is one of inspiration borne out of struggle and torment, the relentless pursuit of an aesthetic ideal, and one man's determination to make a difference.
Continuing his vision and utilising the sketches through which he had conceived the hotel, his wife and daughter, Sangita Shrestha Einhaus, completed the front building (where the reception is now housed) in 1998. In order to complete the building's façade, they worked closely with a local potter named Hirakaji for close to a year, trying to replicate the horizontally carved designs with terracotta. Using a mold of the carvings from the horizontal reliefs on the door frame that is in front of the Lumbini building, they revived traditional terracotta designs that were used in the valley around the 15th century.