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Wednesday, 10 August 2011 01:27 - - {{hitsCtrl.values.hits}}
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Business tycoon Nahil Wijesuriya has succeeded in striking a deal with world-famous Marriot, for the latter to advice and manage a 150-room star class beach resort on a three-acre land in the Weligama Bay area with an investment of US$ 18 million (over Rs. 1.9 billion).
East West Properties Plc’s newly-formed subsidiary Weligama Hotel Properties has signed a Memorandum of Understanding with Marriot-linked special purpose vehicle for Sri Lankan operations Luxury Hotels International Management Company as well as an Interim Advisory Service Agreement with Marriot International Design and Construction Services Inc of USA for the groundbreaking venture.
The deal marks the first serious involvement by globally-renowned hospitality brand Marriott International, which has about 3,150 properties located in the US and 68 other countries and territories.
Nahil told the Daily FT that the tie-up with Marriot was a significant achievement for him as well as Sri Lanka tourism. At present the deal limits the use of the Marriot brand within a specific locality in the south coast, but based on the evolving strong relationship, a few more locations are being identified to set up additional resorts as well.
“Dambulla, Kandy and Nuwara Eliya are some of the prospective other locations that we are looking at,” said Nahil. He said that East West was working closely with Marriot’s technical team in India, where the brand is on an aggressive expansion. “The strategic tie-up will ensure the new resort will be effectively marketed globally as well as in the region,” he added.
The project is awaiting approval from Sri Lanka Tourism’s One Stop Shop Unit as well as the Urban Development Authority.
The breakthrough with Marriot as well as the $ 18 million investment is the first major Greenfield project Nahil is taking up in the leisure sector, whilst he is well-renowned for strategic acquisitions and divesting subsequently at a profit. The previous leisure venture in which he invested and then exited was Ceylon Continental via Hotel Services Plc.
“Given the end of the war boost, leisure is a good business to be in and I see huge potential in tourism,” Nahil added.
Architects from Thailand are already working on the project, whilst the resort also has quick access to the soon-to-be-opened Southern Expressway.
He said that the new resort project was fully self-funded whilst East West Properties, which is owned 85% by Nahil and connected parties, recently had a successful Rights Issue of Rs. 1 billion.
