Hilton, Melwa in historic deal

Melwa Hotels and Resorts Directors with Hilton’s Vice President of Operations, South East Asia and India William Costley (fourth from right) pose after signing the strategic partnership. Melwa Hotels and Resorts Directors P.P. Barathakumar, P.P. Devaraj, P.P. Muruganandhan, Prof. Ranjith Bandara and Hilton Development Asia Director Kieran Bestall are also present 

• Steel giant diversifies into booming tourism sector with $ 100 million investment for six resorts in Yala, Kandy, Nuwara Eliya, Kosgoda, Negombo and Katunayake
• Iconic international brand Hilton Hotels and Resorts to manage three and to roll out Double Tree by Hilton brand for three others
• Joint initiative to add 800 star class rooms to hotel stock of Sri Lanka between 2019 and 2025

Global giant Hilton and Sri Lanka’s steel industry leader Melwa yesterday announced a historic deal heralding six star class hotels in the country with 800 rooms collectively with an investment of $ 100 million (over Rs. 15 billion).

The strategic partnership is by far the largest expansion plan for a global hospitality company in Sri Lanka and will strengthen Hilton’s Asia Pacific portfolio, which stands at 180 at present with 300 hotels in the pipeline over the next 3-5 years. The announcement also comes as Hilton celebrates 30 years of success in Sri Lanka.

The first two of the six hotels are a 42-room luxury boutique hotel in Yala and a 200-room five star transit hotel in Katunayake which will be opened by early 2019 with construction already underway. The others are a 200-room seafront five star in Kosgoda, a 106-room luxury seafront hotel in Negombo, a 97-room luxury corporate hotel in Nuwara Eliya and a 150-room five star in Kandy with four banquet halls that will be completed by early 2025.

Hilton said these locations were some of the most sought after destinations in the country. Hotels in Kandy, Yala and Kosgoda will be branded as Hilton properties while those in Nuwara Eliya, Negombo and Katunayake will go as Double Tree by Hilton. 

In a statement issued to mark the signing of the landmark agreement, Hilton’s Senior Vice President Development - Asia and Australasia Guy Phillips, who acknowledged Sri Lanka was enjoying burgeoning growth, said: “We are pleased to be working with a partner of the experience and standing of Melwa Hotels and Resorts to advance our footprint within this dynamic country.”

The family-owned Melwa, which is the country’s largest steel manufacturer and marketer and also has interests in construction, interior solutions, real estate, plantations, chemicals and paints, is taking a bullish view on tourism and diversifying into it. 

Melwa Group Holding Company Melwire Rolling Ltd’s Director Business Development Dr. Ranjith Bandara said Melwa took the decision to invest in tourism way back in 2014 by floating a subsidiary Melwa Hotels and Resorts. 

“We are delighted that a global leader like Hilton has agreed to manage all six hotels which we are building in accordance with Hilton’s flavour and international design and construction standards,” Dr. Bandara said. 

Hilton is one of the largest and fastest growing hospitality brands in the world with over 4,900 properties comprising over 800,000 rooms in 104 countries and territories. It has 14 world-class brands including Waldorf Astoria, Conrad, Embassy Suites and Double Tree by Hilton. 

Dr. Bandara said Melwa decided to venture into tourism given its recent rapid growth and further huge potential in the future. He said plans to cater to four million tourists by 2020 would require around 50,000 hotel rooms up from an estimated 28,000 capacity at present. 

“Sri Lanka has always been an important market for us,” said Hilton’s Vice President of Operations, South East Asia and India William Costley, adding: “Hilton Colombo has been a true icon of Sri Lanka’s hospitality industry since 1987 followed by Hilton Residences, both of which are a benchmark for hospitality.”

Costley said Sri Lanka was an amazing country of diversity which is unique in Asia and globally and commended the country for attracting two million tourists last year and earning over $ 2 billion.  

“Tourism will be an important, if not the most important, industry of Sri Lanka,” Costley said and expressed confidence of the country achieving the target of four million tourists by 2020. 

“We want to be part of this exciting and unprecedented growth taking place and the future potential,” he added.

Hilton Asia Pacific Vice President Brand Management Sean Wooden in a statement said: “We are delighted to add to our existing portfolio in Sri Lanka with our world-class Hilton Hotels and Resorts and Double Tree by Hilton brands in highly attractive destinations within the country and we look forward to welcoming guests with our renowned Hilton hospitality.” 

“With few international brands having a widespread presence throughout the country, Hilton will enjoy the first mover advantage in riding on Sri Lanka’s growth trajectory,” he added.