Colombo | Shangri-La 7 Star Hotel | Approved - U/C

[PCK]

Sri Lanka to get 7-star Shangri-La hotel


Dec 28, 2010 (LBO) - Hong Kong-based leisure group Shangri-La has signed a deal to acquire land to build a seven-star hotel in the Sri Lankan capital Colombo, the chairman of the tourism authority Nalaka Godahewa said.

Shangri-La signed the agreement Tuesday to acquire 10 acres of government property near the Galle Face green promenade, Godahewa told Vimasuma.com, our sister news website.
The army headquarters which is now located on the land, considered prime commercial property, is to be moved to another location in a Colombo suburb.

Godahewa said Shangri-La will invest about 500 million US dollars in the hotel project which will have almost 500 rooms.

Sri Lanka is experiencing a tourism boom, with arrivals up sharply, after the end of the island's 30-year ethnic war in 2009.


http://www.lbo.lk/fullstory.php?nid=2085828114

[PCK]

just a little curious if only the army grounds is being sold? or whether the ministry of defence and also army HQ has been sold as well to Shangri La?

[PCK]

Security Forces HQ moving to Akuragoda



COLOMBO: Sri Lanka’s Army, Navy and Air Force offices in Colombo are being moved to a massive 48-acre complex at Akuragoda in Pelawatta, Battaramulla, opposite the present Army Volunteer Force Headquarters, making way for the Colombo city development programme.

The Urban Development Authority (UDA) has started clearing the area to begin the construction work. According to official sources, the Army, Navy and Air Force headquarters and several of its Colombo establishments will be housed in one area at Akuragoda with preliminary plans already drawn up. Several other administrative offices were also being shifted to the Sri Jayawadenapura, Kotte area.
At present around 500 acres of prime land are occupied by the armed forces with the country’s five star city hotels, banks and commercial buildings clustered in the same area. This area will be cleared for the proposed US$ 500-million tourism zone in Colombo's Beira Lake area with a US $100-million hotel-casino complex.

The Shangri-La group based in Hong Kong is to be given the land housing the present Army Headquarters and military sports ground in Colombo to build a US $75 million (incorrect: land was sold for US$75 million, hotel is going to be built at US$500 million) luxury hotel and apartment complex. The armed forces occupy prime property in Colombo City and this perhaps was a legacy from British regime when Colombo was a garrison city and at the same time was the principal port and administrative centre, the sources said.

President Mahinda Rajapakse placed the UDA under the command of the Defence Ministry as part of the City of Colombo Development Plan to attract investors and tourists. The plan was initially drawn up in 1999 and re-announced in 2008, but shelved because of the opposition of shanty dwellers, who make up nearly half the city’s population. The government has already launched the Colombo city development programme aimed at making Colombo an International Business Centre and Financial Hub integrated with Tourism and Accommodation Facilities. Measures have been taken by the UDA to clear shanties where 66,000 families live in Colombo’s prime lands in an extent of 450 acres and use such land for other purposes.


http://www.mediawitty.com/test/NewsD...to%20Akuragoda

[Amal]

Although this is really good news, what exactly is a "seven star" hotel?

[phil.froelich]

Yeah, this 'seven-star' classification is quickly used in Sri Lanka, it definitely can't be international, because there are only a handful of real, international 6 and 7 star hotels...this would be a 5 star in normal classification...

[PCK]

So is it safe to say that the land used will be the one highlighted in red below??
btw i heard reports that not only will they be building a hotel, but also commerical spaces (a mall maybe.) and some even say that there might build serviced apartments like how they have in Singapore. Not sure about the sources so cant be really sure.


[IMG]http://i52.************/znpwu1.jpg[/IMG]

[saraprobe]

According to the treasury secretaryDr. P.B. Jayasundara , they have reportedly paid $75 million for the prime land. anyway awesome news , now cant wait to see Shangri-La press release

[Shakeel]

if this for real, its worth the investment.

Originally Posted by PCK

So is it safe to say that the land used will be the one highlighted in red below??
btw i heard reports that not only will they be building a hotel, but also commerical spaces (a mall maybe.) and some even say that there might build serviced apartments like how they have in Singapore. Not sure about the sources so cant be really sure.


[IMG]http://i52.************/znpwu1.jpg[/IMG]

[ecureilx]

Originally Posted by PCK

So is it safe to say that the land used will be the one highlighted in red below??
btw i heard reports that not only will they be building a hotel, but also commerical spaces (a mall maybe.) and some even say that there might build serviced apartments like how they have in Singapore. Not sure about the sources so cant be really sure.

Shang- or Shangri-lah, in the region, has some mixed developments, and in Singapore, it is a Hotel + service apartment, 5 star, and in another nearby country, they are on 5 star as well, with a mall, serviced apartments, non-serviced apartments and hotel.

Still i am a bit perplexed about the '7 star' thing .. well, as a matter of fact, not to be funny, but most 5 star hotels in CMB will struggle to get a 4 star rating elsewhere ..

[Glazierblue]

7 star is just a marketing gimmick. Although some hotels claim six or seven star rating, there is no formal rating over 5 star.

[Ashok]

Any idea how many floors this will be ?

[saraprobe]

Shangri-La, famous for its numerous hotels around the world, would soon start work on its latest venture, a seven-star hotel near the Galle Face Green promenade, where the Army Headquarters now stands.
Representatives of Shangri-La are said to have signed an agreement with officials of the Government to acquire 10 acres of the said property. BOI reports that a total of US$ 75 million has been spent for this purpose.
Chairman of Sri Lanka Tourism Nalaka Godahewa speaking to Daily FT stated that the project would be completed with an estimated investment of US$ 500 million and would have 500 rooms. Employment generation will also be substantial, he said.
Godahewa stated that the project would move forward very swiftly and work on it would start as early as end 2011.
“I assume they will need about six months for the designing process and so on. By the latter part of 2011, construction work should start,” Godahewa said. “The project has moved very fast from the discussion stage to the implementation stage. Treasury Secretary Dr. P.B. Jayasundera was instrumental in hurrying up the process.”
According to the agreement, the Army Headquarters will be moved to a different location. Details will not be revealed until later next year, the Chairman said. However, the relocation will be done in several stages and would be completed by the time hotel construction is ready to start.
Shangri-La Hotels and Resorts is Asia Pacific’s leading luxury hotel group and is regarded as one of the world’s finest hotel ownership and management companies. Shangri-La began in 1971 with its first deluxe hotel in Singapore. Today, there are 70 hotels and resorts throughout Asia Pacific, North America and the Middle East, representing a room inventory of over 30,000.
New hotels are under development in Austria, Canada, mainland China, India, Macau, Philippines, Qatar, Turkey and United Kingdom.

FT

[saraprobe]

Dealers speculated that the Shangri La deal concluded between the Hong Kong based hotel chain and the government has resulted in an inflow of US$ 75 to 100 million on Tuesday.

"There was an inflow of dollars on Tuesday and we believe it could be a result of the Shangri La deal. We believe the inflow amounts to anything between US$ 75 to 100 million," a dealer told The Island Financial Review.

At the time of going in to press, senior officials of Sri Lanka Tourism, and Bank of Ceylon were not available for comment.

The rupee began the week at Rs. 111.30 against the dollar and strengthened further to Rs. 110.90 on Tuesday. At the time of writing yesterday (29), the dollar was trading at 110.88/93, dealers said.

Shangri La Hotels is planning to construct the only 7 star hotel in a 10 acres plot owned by the Defence Ministry overlooking the Galle Face green.

The project is estimated at US$ 500 million.

Shangri La is also planning to develop 150 acres of land in Hambantota.

Island

[Shakeel]

Do you know what they plan on the Hambantota land. Is it a spawling resort of high with villas. The details are very sketchy from the tourism authority and also from the developer itself. Their URL is not updated on this planned investment.

Originally Posted by saraprobe

Dealers speculated that the Shangri La deal concluded between the Hong Kong based hotel chain and the government has resulted in an inflow of US$ 75 to 100 million on Tuesday.

"There was an inflow of dollars on Tuesday and we believe it could be a result of the Shangri La deal. We believe the inflow amounts to anything between US$ 75 to 100 million," a dealer told The Island Financial Review.

At the time of going in to press, senior officials of Sri Lanka Tourism, and Bank of Ceylon were not available for comment.

The rupee began the week at Rs. 111.30 against the dollar and strengthened further to Rs. 110.90 on Tuesday. At the time of writing yesterday (29), the dollar was trading at 110.88/93, dealers said.

Shangri La Hotels is planning to construct the only 7 star hotel in a 10 acres plot owned by the Defence Ministry overlooking the Galle Face green.

The project is estimated at US$ 500 million.

Shangri La is also planning to develop 150 acres of land in Hambantota.

Island

[saraprobe]

Originally Posted by Shakeel

Do you know what they plan on the Hambantota land. Is it a spawling resort of high with villas. The details are very sketchy from the tourism authority and also from the developer itself. Their URL is not updated on this planned investment.

No idea, well they say itz gonna be an upmarket resort

[Shakeel]

http://www.island.lk/index.php?page_...de_title=14665

By Mario Andree

Hong Kong based leisure chain Shangri La has concluded an outright purchase of a 10 acre plot in Colombo facing the Galle Face green owned by the Defence Ministry, for US$ 125 million, a top official said.

Sri Lanka Tourism Development Authority Chairman Dr. Nalaka Godahewa told The Island Financial Review that the outright purchase was concluded with an upfront payment of US$ 75 million with the balance US$ 50 million to be paid later.

Shangri La is expected to invest US$ 500 million in what would be the only seven star hotel in Sri Lanka.

The Island Financial Review yesterday (30) reported that the US$ 75 million inflow had appreciated the rupee.

[saraprobe]

Representing the Government of Sri Lanka, President Mahinda Rajapaksa, Minister of Economic Development Basil Rajapaksa, Lalith Weerathunga, Secretary to the President, P B Jayasundera, Secretary to the Treasury, Ajith Nivard Cabraal, Governor, Central Bank of Sri Lanka, Gotabaya Rajapaksa, Secretary to the Ministry of Defence among other government officials.

Representing Shangri-La Hotels, Madhu Rao- Executive Director/ Chief Financial Officer - Shangri-La Asia Limited, Sajad Mawzoon- Director- Shangri-La Hotels Lanka (Pvt) Ltd, Kuok Meng Xiong - Senior Assistant to the Chairman of Shangri-La Asia Ltd. Also attended by Sabrinah Mawzoon and Faisza Musthafa Markar.

Plans to open a new hotel in Colombo in 2014 and 300-key resort in Hambanthota

Hong Kong-based Shangri-La Asia Limited yesterday officially announced the purchase of six acres of Government land facing the Galle Face Green promenade, a prominent landmark in Colombo, Sri Lanka.

The development will be a multi-use complex with high end retailing, deluxe apartments and a 500-key luxury hotel to open in early 2014 and the purchase marks the entry of the hotel group into Sri Lanka, often referred to as 'The Pearl of the Indian Ocean', a statement by the hotel chain said.

Shangri La is also planning to develop a second property, a 300-key city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka to open in 2013.

"Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage and above all it is well recognized for its warm and hospitable population," said Greg Dogan, president and chief executive officer of Shangri-La International Hotel Management Ltd.

"The government is fully committed to rebuilding the economy following the end of three decades of conflict and we believe that Shangri-La will be able to assist in positioning the country as a prime global tourist destination.

Both Shangri-La hotels strategically fit into the group's ongoing expansion plans to link the Indian subcontinent and our South East Asia developments", Mr. Dogan concluded.

"The entry of the Shangri-la global network is an endorsement of the economic prospects that Sri Lanka has gained since His Excellency the President, Mahinda Rajapaksa ending the long drawn conflict, and accelerating long term infrastructure development, through the creation of a stable economic environment while promoting a rural-centric development strategy. It also marks the beginning of a new journey of a high level of
Foreign Direct Investment that Sri Lanka needs in order to accelerate an economic growth in excess of eight per cent and position Sri Lanka as an emerging middle income country in Asia", commented the Secretary to the Treasury.

The Secretary also confirmed that several of the world's leading investors have expressed interest to undertake a wide range of investment activities in 2011.

Hong Kong-based Shangri-La Asia Limited, one of the world's premier hotel companies, currently owns and/or manages 70 hotels under the Shangri-La and Traders brands, with a room inventory of over 30,000. Over almost four decades, the group has established its brand hallmark of 'hospitality from the heart.' The group has a substantial development pipeline with upcoming projects in Austria, Canada, mainland China, India, Macau, Malaysia, Philippines, Mongolia, Russia, Qatar, Turkey and United Kingdom.



DM

[saraprobe]

[mrpanini]

[IMG]http://oi56.************/2cctn3l.jpg[/IMG]

Shangri La's 300 room resort in Hambantota according the The Island newspaper

http://www.island.lk/index.php?page_...de_title=14940

I'm highly skeptical of this illustration.

[Shakeel]

This is another location's existing hotel with similar layout. Concrete plans will help to affirm their intention.

Originally Posted by mrpanini

[IMG]http://oi56.************/2cctn3l.jpg[/IMG]

Shangri La's 300 room resort in Hambantota according the The Island newspaper

http://www.island.lk/index.php?page_...de_title=14940

I'm highly skeptical of this illustration.