Sri Lankan real estate developer Melwa Hotels & Resorts, a subsidiary of Melwire Rolling, a domestic steel manufacturer, has reportedly secured a $24-million loan to develop Hilton-branded hotels in the country.
The total funding requirement to construct the hotels is slated to exceed $100 million. The IFC will fund the first phase of the project, which will be constructed in two phases.
The first phase of the development includes the construction of the 96-room DoubleTree by Hilton Negombo opening by March 2019, the 192-room seafront Hilton Kosgoda Resort opening by 2021 and the 42-room Hilton Yala Resort & Spa opening by 2020. The second phase includes the 200-room DoubleTree by Hilton Colombo International Airport, the 150-room Hilton Kandy Resort and the 96-room DoubleTree by Hilton Nuwara Eliya. The partners also plan to open these new hotels by 2021.
Hilton signed an agreement in April 2017 to manage all three properties, according to Mirror Business. After signing these six new properties with Melwa Hotels, the hotel group inked a seventh hotel in Sri Lanka with KDU Group in June 2017. Hilton will manage the new 140-room DoubleTree by Hilton hotel in Weerawila while KDU Group is constructing it. The first phase of the DoubleTree by Hilton Weerawila Rajawaranaa Resort, which included the construction of 80 of the 140 guestrooms and other facilities, is already complete, following a $27-million investment. The remaining guestrooms are currently being constructed in the second phase.
Hilton is on track to have a portfolio of nine hotels in Sri Lanka once these new projects are complete. The hotel group has two Sri Lankan hotels in the capital city: the Hilton Colombo and the Hilton Colombo Residences.