Hilton signs landmark agreement
Hilton Worldwide (Hilton) signed an agreement with Hotel Developers
(Lanka) PLC (HDL) for the management of the Hilton Colombo.
The agreement reiterates that Hilton will continue to operate and
manage the Hilton Colombo.
HDL Chairman, Thirukumar Nadesan said that he was pleased to have the
agreement in place after a prolonged discussion and expressed great
satisfaction that the new agreement would immensely benefit HDL in
savings fees paid to Hilton and other tangible benefits such as reduced
operating terms with options for renewal by mutual consent.
The new terms will be effective from June 14, 2012.
The savings on the total fees payable to Hilton based on the current
year's forecast revenue and gross operating profits will be
approximately Rs. 122 million.
On an annualised basis the savings for an year will be over Rs. 250
million.
The operating term of the new agreement ends on December 31, 2019
with extension by mutual agreement, more flexible than the provisions in
the previous agreement which Hilton claims extends up to 2037.
"This agreement establishes our joint commitment to support and drive
the growth of the tourism industry in Sri Lanka.
Backed by Hilton Worldwide's expertise in global hospitality, we are
confident that the country will continue to attract a growing number of
domestic and international visitors," said Nadesan.
"We are pleased to have reached an arrangement mutually beneficial to
HDL, as the owners of the most sought after five-star property in Sri
Lanka and Hilton Worldwide, the most prestigious Hotel Chain, to
continue managing the Hilton Colombo," said President, Asia Pacific,
Hilton Worldwide Martin Rinck.
"Hilton Worldwide has been operating in Sri Lanka since 1987 and
enjoys an excellent working relationship with HDL and the local
community.
We remain totally committed to the market and firmly believe in the
country's outstanding potential as a tourist destination and business
hub," he said.
|