IFC approves US $ 24m loan for Melwa hotel project with Hilton

The International Finance Corporation (IFC) of the World Bank Group has approved a loan up to US $ 24 million for a mega luxury leisure project in Sri Lanka, handled by the real estate developer Melwa Hotels & Resorts (Pvt) Ltd.

The total funding requirement in setting up the mega-scale project, which will be carried out in two phases, is expected to exceed US $ 100 million. The IFC pledge is for phase one of the project.
The loan agreement that was approved on March 20, 2018, was signed on March 22, and is pending disbursement.

Phase one of the project would include the 96-room property in Negombo, 192-room seafront property in Kosgoda and 42-room wild beach resort in Yala. 

The properties are scheduled to reach completion by March 2019 (Negombo), 2021 (Kosgoda) and 2020 (Yala).

The management of the properties has been handed over to Hilton Hotels & Resorts for which an agreement was inked in 
April 2017. 

The hotels will be opened under the names DoubleTree by Hilton Negombo, Hilton Kosgoda Resort and Hilton Yala Resort & Spa.

Phase two of the project will include a 200-room hotel located in the vicinity of the Katunayake International Airport, a 150-room resort in Kandy and a 96-room property in Nuwara Eliya.

Incorporated in 2004, Melwa Hotels & Resorts (Pvt) Ltd. is a fully-owned subsidiary of Melwire Rolling (Pvt.) Ltd, which is the largest domestic steel manufacturer in the country having approximately 60 percent market share. 
(SAA)