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Shangri La purchases Colombo Army grounds for US$ 125mn
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Author:  Saman [ Fri Feb 04, 2011 4:51 pm ]
Post subject:  Shangri La purchases Colombo Army grounds for US$ 125mn

Shangri La purchases land outright for US$ 125mn
Plans to open a new hotel in Colombo in 2014 and 300-key resort in Hambanthota

Shangri-La Asia Limited officially announced the purchase of six acres of Government land facing the Galle Face Green promenade. Shangri La is expected to invest US$ 500 million in the multi-use complex with high end retailing, deluxe apartments and a 500-key luxury hotel to open in early 2014.

Hong Kong based leisure chain Shangri La has concluded an outright purchase of a six 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.

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.

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