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State-owned hospitality ventures to be restructured 

20 May 2021

 

  • Selendiva entrusted with Hilton Colombo, Grand Hyatt, Grand Oriental restructuring

  By Imsha Iqbal   Selendiva Investments is focusing on restructuring state-owned hospitality ventures like Hilton Colombo and Grand Hyatt Colombo, according to the company’s CEO Shamahil Mohideen.  Mohideen told this to The Morning Business, following the nod selendiva received   from the Cabinet of Ministers for the proposal to implement three exclusive investment portfolios.  Selendiva Investments Ltd., as a holding company, does not operate any business activity such as manufacturing a product or providing a service; however, it acts as a parent company that holds assets. Thus, the initial ventures of Hilton Colombo, Grand Hyatt Colombo, and the Grand Oriental Hotel will be brought under the purview of Selendiva Investments, Mohideen said. “Our mandate is basically to restructure these institutions, which includes operation and capital, in order to get optimum benefits and performance,” Mohideen said, referring to the aforementioned institutions. Apart from the said restructure of the institutions, the company also hopes to expand other institutions in the hospitality industry, as well as to capitally restructure them on the Public-Private Partnership (PPP) model instead of the Government merely privatising the institutions, he said. The PPP model involves collaboration between privately-owned companies and the Government for a financial project under a concession of tax or some other operating revenue with protection from liability or partial ownership rights on nominal and public services.  Mohideen said that Selendiva looks forward to working with the private sector, especially investors, and that he firmly believes that the private sector is the “engine of our (Sri Lanka’s) economic growth.”  He further said that due to the scarcity of the capital investments of the Government, “we (Selendiva Investments) are bidding for the assistance of the private sector to come in and join hands with the Government to improve these assets.” Thus, he explained, Selendiva welcomes investors, as it needs capital investments the most. Responding to the implementation of the three approved investment portfolios, Mohideeen said that at the moment the investment holding company is in the process of assessment, with Government assistance, to ensure that the fair use of the assets are distinctly reflected in the balance sheets. With regard to the Colombo Fort Heritage Square, the Selendiva CEO said he identified that the Colombo city does not have a specifically segmented tourism market. On the contrary, in the past, Colombo was a transit hub to go to resort areas. However, after the Expressway's construction, even that market has left Colombo.  Thus, in order to create a segment in the Colombo tourism market, the company anticipates to focus on Colombo Fort, where there are numerous colonial buildings, and bring back their heritage value by restoring them into a square similar to those in France and Italy. The relevant proposal was presented to Parliament by Prime Minister Mahinda Rajapaksa, in his capacity as the Minister of Urban Development and Housing.  


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