Hilton reps to meet authorities
Hilton representatives are to meet with the relevant authorities to
discuss the change in the ownership of the Hilton Colombo Hotel, a
statement said yesterday.
Hilton Colombo |
Hilton Hotels and Resorts (Hilton) has a management agreement to
operate Hilton Colombo on behalf of Hotel Developers (Lanka) PLC, from
more than 20 years ago and this management agreement currently remains
in place.
"We have been advised that the Sri Lankan Government has been noted
as the new owners of the land and building of the hotel," the statement
said.
Hilton representatives will meet with the relevant parties to discuss
the change in ownership and in the meantime, Hilton will continue to
maintain normal business operations at the Hotel, the statement further
said.
Meanwhile Hotel Developers (Lanka) Plc which owns the building on
which Colombo Hilton is operated said the land sub-leased from a private
party had been taken over by the state. The state land on which the
building was put up has been sub-leased from Cornel and Company, a
private firm, in 1984 in return for equity, Hotel Developers CSE filing
said.
Cornel and Company had leased the land from Urban Development
Authority (UDA). The firm was expected to pay the lease to the UDA.
CSE filing further said the UDA had repudiated the lease since
rentals had not been paid from 1987 and the land had reverted back to
the state.
The Government has fully acquired the Hilton Hotel in Colombo last
week, Economic Development Minister Basil Rajapaksa said in Parliament
on Wednesday. Government took over the Hilton Hotel since the agreement
had lapsed last week, due to non-payment of instalments, he said. |