Galadari Hotels Lanka inks US $ 33.5 mn BOI deal for refurbishment
By: Staff Writer
Colombo (LNW): Galadari Hotels Lanka PLC said yesterday it has successfully signed an agreement with the Board of Investment (BOI) of Sri Lanka as the first step towards the property’s refurbishment process.
Galadari Colombo has over the years built up an enviable reputation in the hospitality industry and proudly boasts of over 39 years of exceptional service.
The company has entered into two agreements which include the Hotel Development Services Agreement (HDSA) which will later be followed by a Hotel Management Agreement (HMA) with Radisson Hotels Asia Pacific Investments Ltd.
The property will go through a total transformation which will enable the hotel to set new standards solidifying its high competitiveness in the industry. A world-renowned architectural company based in Hong Kong will overlook the overall designing process of the property.
The first phase, which includes a project cost estimated at $ 33.5 million will include 200 rooms, restaurant outlets, guest lobby and common areas and a completely revamped hotel facade. The second phase will commence one year after the completion of phase 1.
Galadari said the BOI signoff is the first of a series of events that will be taking place as the hotel starts its new journey, which will ultimately lead to an engagement with Radisson Hotels Asia Pacific Investments Ltd. to manage Galadari Hotel Colombo under a new brand name.
Galadari Hotels Lanka PLC intends to rope in multinational hospitality management company Radisson Hotels Asia Pacific Investments Pte. Ltd to manage Galadari Hotel Colombo, under the name ‘Radisson Blu Hotel Galadari Colombo’.
“In this regard, the company has undertaken to renovate Galadari Hotel Colombo in preparation of the management and operation of the same by Radisson. Accordingly, the company has entered into a Hotel Development Services Agreement (HDSA) and a Hotel Management Agreement (HMA),” official circular said.
“The HMA provides for (both in form and content) a License Agreement and Management Consultancy Agreement, which may be entered into on a future date, at the option of the company and subject to satisfaction of identified conditions,” it added.
The deal has been determined by the board to be a major transaction under and in terms of Section 185 of Companies Act No.7 of 2007.
“The HDSA and HMA were executed on May 1, 2023 and shall be effective as at May 1, 2023, upon the passing of a special resolution by the shareholders of the company,” the circular said.
The company in May 2019 initially announced its plan to refurbish 400 rooms, MFP work and F&B outlets, at an estimated cost of US $ 15 million. The refurbishment was originally scheduled to commence in June 2019. However, it was pushed back, as the company decided to come up with fresh design plans.
Galadari Brothers Co LLC owns a 63.57 percent stake in the 1984-established Galadari Hotels (Lanka) PLC.