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
HDL Chairman, Thirukumar Nadesan said that he was happy to ink this
agreement 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 June14, 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 annualized 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
“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,” Nadesan said.
“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
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.