Sri Lankan government looking at selling its ownership in Hilton Colombo and Hyatt Hotel
The government of Sri Lanka has reportedly decided to sell its shares in Colombo Hilton and Hyatt Hotel.The government 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 owns Hyatt Hotel.
The local media has reported that the Ministry of Public Enterprises is looking at selling 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 has stated.
Hotel Developers is fully owned by the Treasury and is a listed company whose shares were expropriated by the former Mahinda 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 five 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 apartments.
The decision by the Sri Lankan government to sell its stake at Colombo Hilton and Hyatt Colombo is a grand investment opportunity for foreign investors looking at investing in the local tourism industry. Sri Lanka’s tourism sector is poised for continuous growth and investments in the sector will bring good returns to the investors.
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