Shangri La Asia says Colombo hotel design delays project
COLOMBO, July 4
COLOMBO, July 4 (Reuters) - Honk Kong based Shangri La Asia (0069.HK) on Monday said its Colombo luxury hotel project will be completed by end 2014, later than the scheduled date in early that year due to complexity of the design.
Shangri La in January said the development in Colombo will be a multi-use complex with high-end retail facilities, deluxe apartments and a 500-room luxury hotel and expected to open in early 2014.
It has also planned to develop a second property, a 300-room city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka, scheduled to open in 2013.
The total investment for both projects has been estimated at $500 million.
Madhu Rao, the executive director and chief financial officer of Shangri La Asia on Monday said the Colombo hotel project has not yet started and it will need three years to complete from the date of digging the ground.
"Colombo will take another two-three months, because designs are much more complicated here," Rao told Reuters in the sideline of a national economic forum in Colombo.
"It's very very complex. A lot of integration and various elements have to take place. So till we are satisfied that all the design elements come into place like we wanted, we can't start foundation work. Colombo will be 36 months from the time we start digging the ground."
Rao said the company expects to start Hambantota project in August and complete its first phase by 2013.
Sri Lanka's tourism sector has already secured $1.2 billion investment including from Shangri La due to the post-war tourism boom in the Indian Ocean Island nation. [ID:L3E7HO28Q]
"We are impressed with the potential," Rao said referring to tourist attraction towards Sri Lanka. "Honestly I tell you, we will bring in quality products and see people coming in a big way." (Reporting by Shihar Aneez; Editing by Diane Craft)
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