Shangri-La acquires land for US$500m hotel in Colombo

COLOMBO Hong Kong-based Shangri-La Hotels and Resorts has formalized plans for a US$500 million “7-star” hotel in the Sri Lanka capital.

The deal to acquire 10 acres of government property near the Galle Face green promenade was confirmed this week by Nalaka Godahewa, chairman of the country’s tourism authority. The hotel will have approximately 500 guestrooms.

The site is currently occupied by an army headquarters, which will be relocated to a Colombo suburb.

Sri Lanka’s hotel industry is suddenly booming following the conclusion of a 30-year ethnic war in 2009. Earlier this month, Mövenpick Hotels & Resorts announced the 180-key Mövenpick Hotel Colombo, which is expected to open by mid-2013. Minor International launched its Anantara brand in Sri Lanka in August.