Deal signed for $ 80 m Sheraton in Colombo

nThe 306-room luxury hotel to open doors in October 2013, making it the first major global brand to debut in post-war

Sri Lanka

nArchitectural contract awarded to W.S. Atkins, designers and engineers of Dubai’s iconic Burj-Al-Arab among others

nLanka Hotels and Residencies and Starwood Group looking for other development opportunities in Sri Lanka identified as emerging market in the global hospitality and leisure industry

The US-based global giant Starwood Hotels and Resorts Worldwide, the owners of the internationally-famous Sheraton brand, yesterday signed the deal in Colombo with local partners to manage its first-ever hotel in Sri Lanka.

Lanka Hotels and Residencies Ltd., and its promoters Greenwater Resorts Ltd., of India and Eurcon Building Industries FZC of the UAE, together with their Sri Lanka partners, will be making an investment of $ 80 million to build the new Sheraton hotel opposite the Galle Face Green in Colombo 3.

“This will be the first world-known international brand hotel which will become operational since the end of the war,” the promoters said yesterday after the signing of the agreement.

The 306-room Sheraton Colombo, complete with a Presidential Suite and other themed luxury suites as well as four restaurants, is expected to open its doors in October 2013, they added. The Shangri-La Hotel, an agreement on which was signed in February, is slated to open in Colombo only in 2015.

The architectural contract has been awarded to a leading consultancy W.S. Atkins, designers and engineers of Burj-Al-Arab, The Address Hotel, Dubai’s Metro System and Olympic Games in London 2012. The interior design contract was awarded to Catallo and Associates of Singapore.

“The shareholders of Lanka Hotels and Residencies have demonstrated their commitment to the importance of Sri Lanka as an emerging market in the hospitality and leisure sector and are actively seeking to make further investments in Sri Lanka,” a spokesman said.

The investors of this project as well as the operator Starwood Group considers Sri Lanka as a significant emerging market in the global hospitality and leisure industry, he added.

“We note the myriad of opportunities available in Sri Lanka with the end of the war and appreciate that the Government of Sri Lanka led by President Mahinda Rajapaksa is facilitating the entry of new investors by streamlining and simplifying due processes within an ambiance of peace and opportunity,” the spokesman emphasised. “These measures underscore the Government of Sri Lanka’s resolve to attract foreign inward investments in its drive to build and develop the infrastructure of the nation,” he added.

Lanka Hotels and Residencies Ltd., together with its promoters Greenwater Resorts Ltd., Eurcon Building Industries FZC and its Sri Lankan partners together with the operator of Sheraton, the Starwood Group, said they wish to place on record their sincere thanks for all initiative and efforts of Treasury Secretary Dr. P.B. Jayasundera for making the project ‘Sheraton-Colombo’ a reality.

According to the spokesman, Lanka Hotels and Starwood Group are also looking forward to other development opportunities in Sri Lanka.

Sheraton Hotels and resorts is the flagship brand of Starwood Group and is recognised worldwide as offering luxury hotel and resort accommodation. It operates nine internationally recognised brand names – St. Regis, The Luxury Collection, W, Westin, Le Meridien, Sheraton, Four Points by Sheraton, Aloft and ElementSM – at 1,090 properties in 100 countries employing in excess of 154,000 staff.

The company’s loyalty program Starwood Preferred Guest (SPG) is famed for allowing members to earn and redeem points for room stays, room upgrades and flights without blackout dates.