Proposed Project Description :
Grand Hyatt Colombo is a 5 star hotel situated in the heart of Colombo 03. Hotel will consist of 48 floors with 458 Guest rooms, 100 service apartments, 12 speciality restaurants, 7 meeting rooms with 1000 pax ballroom, Gym Pool & Spa and inhouse laundry. The Hotel covers approx. 1.2 million Sqft and the hotel is expected to be fully completed by Dec 2022, with partial operation with 200 rooms by Dec 2021. Completion stage stand at 60% overall. Total cost to completion will be US$ 270 million, with an IRR of 13.5%.
Expected investment :
To be confirmed
Expected method of partnership :
Private Public Partnership (PPP) with divestment of 49% to the investor.
Employment generation :
A minimum of 900 staff covering all parts of hotel operations
Market potential :
High market potential given the option to operate with service apartment which are in high demand for long stays with Port City development. Grand Hyatt makes its first entry to the Sri Lanka market and will compete with few other top international operators in the city. Tourism arrival is expected to reach peak during the completion of the hotel construction in Dec 2022.
Payback period :
Period to commence commercial operation :
In full operation by Dec. 2022
Current status of the project :
All approvals obtained and under construction stage, nearing 60% completion.
Common infrastructure and utility availability :
All infrastructure and utility services available and have obtained required approvals to comply with regulatory requirements.
Geographical Location :
Galle Road, Colombo 03
Land Extend :
Estimated Land value :
LKR 9 billion
Land Agreement/ownership :
99 year lease
Benefits to the Investor :
The project enjoys strategic development status with duty free and tax incentives provided. Highest IRR achieved compared to the local hotel projects considering the availability of 100 service apartments which could be marketed for outright sale for investment recovery. Pre-Sale option could be considered for sale of apartments and minimizes investment. With the long term lease and clear title of this property, an ideal investment with reasonable return on investment. The option of obtaining management control could be considered to the investor.
Contact details :
(Name, Designation, Institute, Telephone, Email, Website)
Mr. M. S. Mohideen
Group Chief Executive Officer, Selendiva Investments Limited