Sri Lanka calls advisors to sell Hilton, Grand Hyatt properties
ECONOMYNEXT – Sri Lanka has called for proposals to advise the government on the sale of Hotel Developers (Lanka) Pc, which owns the Colombo Hilton building and Canwill Holdings (Pvt) Ltd, which is expected to be occupied by Hyatt, one it is completed.
The Ministry of Public Enterprises is planning to sell 51 percent of Hotel Developers and 100 percent of Canwill Holdings through a competitive bidding process.
"The Advisor will be responsible for marketing the assets to seek and identify suitable investors for both investment opportunities described above, sourcing reputed potential investors with a capacity and willingness to invest in each of these properties," the request for proposals published by Sri Lanka’s Ministry of Public Enterprises said.
Hotel Developers is fully owned by the Treasury.
It is listed company whose shares were expropriated by the Rajapaksa administration undermining the country’s investment environment and discouraging foreign investment and private property rights.
The company operates the Colombo Hilton, a 350 room 5-star hotel in the heart of the City of Colombo on a 6.92 acre property leased by the government.
Canwill Holdings (Pvt) Ltd: owned by Sri Lanka Insurance Corporation Ltd (45.95 percent, Litro Gas Lanka Ltd (27.03 percent) which is a subsidiary of SLIC, and Employees Provident Fund (27.03 percent, owns the planned Grand Hyatt building through a project company called Sinolanka Hotel and Spa (Pvt) Ltd.
The Grand Hyatt project is expected to be completed this year with 458 5-star hotel rooms and 100 serviced apartment.
The hotel occupies a land extent of 2.32 acres, a majority of which is leased from the government. Hyatt is expected to have a 20-year management contract. (Colombo/Dec07/2018)