Fifteen local and foreign property and financial consultancy firms and investment bankers have forwarded proposals for the role of transaction advisor to the government on the sale of Hilton Colombo and the Grand Hyatt Colombo hotels.

According to the document published by the Public Enterprise Development Ministry, the highest number of proposals was from Singapore with five, followed by Sri Lanka with four.  Three proposals were from Indian companies, while there was one each from Malaysia, Austria and Dubai.
Locally, proposals were submitted by KPMG, YSP Advisors (Pvt) Ltd, Acuity Partners (Pvt) Ltd and Capital Alliance Partners Ltd. The Transaction Advisor is expected to conduct research, advertise and communicate with potential investors and attract investors for the 
two hotels.

The government will sell 51 percent of the Colombo Hilton holding company Hotel Developers PLC on an ‘all or nothing’ basis on a special board on the Colombo Stock Exchange, with the purchaser selected through a competitive bidding process.

Some shares would be sold to employees, while the remainder would be sold to the public.

The total shares in Canwill Holdings (Pvt) Ltd, which owns the Grand Hyatt, would also be divested in a similar manner.

The Colombo Hilton, fully owned by the Treasury, has a 5-star 350-room hotel on a 6.92 acre land in the city centre, while the Grand Hyatt owned by the Sri Lanka Insurance Corporation and the Employees’ Provident Fund, is still under construction, will be a 458-room, 100 serviced apartment 5-star hotel occupying 2.32 acres. Non-strategic State-owned enterprises are being divested as a part of the reforms under the International Monetary Fund programme to improve the country’s economy, and the funds realized from the sale are expected to be channelled into Sri Lanka’s foreign reserves.