Bangladesh to take over management of Dhaka Sheraton, drop flag

DHAKA, BANGLADESH The state-owned Bangladesh Services Ltd. will take over management of the 272-key Dhaka Sheraton Hotel next month, renaming the property Dhaka Continental.

Starwood Hotels & Resorts’ management deal for the hotel expired at the end of 2008. It had been renewed on a quarterly basis since then.

Starwood and the Bangladesh government differed on operating standards, ultimately leading to the flag termination, according to The Daily Star. Bangladesh, which owns the hotel, had resisted Starwood’s insistence that the hotel close for a year-long, US$25 million renovation.

IHG’s Crowne Plaza brand and Hyatt Hotel Corp. are in talks with the government about flagging the property.