Grand Oriental Hotel and York Street Building

Description :

Proposed Project Description :
82 room boutique hotel adjacent to the Colombo Port strategically located inside the Colombo Fort Heritage area. The area will shortly be transformed to a Heritage square with several other development project to restore colonial architecture to attract tourism to the city. The construction of the cruise terminal in the near future could also attract the direct connectivity of transit tourist to the hotel. Hotel went through a refurbishment as part of its restoration and is expected to be positioned as the top boutique colonial hotel in the city. The expansion of further 160,000 sqft is available in the York street building as the hotel is currently housing only 80,000 sqft of the entire property.

Expected investment :
To be confirmed
Expected method of partnership :
PPP Model with 49% divestment of government shares to the investor
Employment generation :
300

Market potential :
The hotel is currently positioned as the oldest heritage hotel in Colombo fort with direct connectivity to the Colombo port to reach the potential from cruise terminal constriction. The surrounding area will be transformed to a heritage square with pedestal which will importantly benefit the hotel occupancy and business operations substantially. The expansion facility in the building can provide the option to either expand the hotel operations or to seek other options for cross selling the hotel business.

Payback period :
10 years

Period to commence commercial operation :
Expansion development will be completed within 2023.
Current status of the project :
Feasibility Report Stage for the new development and expansions.
Common infrastructure and utility availability :
To be confirmed

Geographical Location :
Mudalige Mawatha, Colombo 01
Land Extend :
240,0000 Sqft Building in 1 acres land
Estimated Land value :
LKR 4.5 billion
Land Agreement/ownership :
NA

Benefits to the Investor :
Investor could enjoy Strategic Development Status and obtain all facilities provided under this category. The investment recovery could be expedited with the balance area for development with the most beneficial and viable business model. Hotel will be the oldest Heritage property with high heritage goodwill which could be enhanced with development and can be transformed to a top heritage boutique hotel in line with other regional properties like Raffles Singapore. The location is ideally suited for attracting tourist arrival due to the proximity to the Colombo port and future development of the cruise terminal. High ROI can be achieved due to the government development plans to convert the Colombo fort to an Heritage Square to attract a new tourism market.

Contact details :
(Name, Designation, Institute, Telephone, Email, Website)
Mr. M. S. Mohideen
Group Chief Executive Officer, Selendiva Investments Limited
+94773830693 mshamal@hotmail.com