SRI LANKAN Aitken Spence Hotels has pulled out of an agreement to set up a resort in the country with Bangkok-based The Soneva Group.
“We are talking to international operators for a new partnership to set up resorts in two locations – a four-hectare and an 11-hectare site,” said Malin Hapugoda, managing director of Aitken Spence Hotels.
The agreement was originally sealed (TTG Asia e-Daily, January 17, 2011) between Aitken Spence Hotel Holdings, Six Senses Resorts & Spas – which was then managed by founder Sonu Shivdasani – and another local company, the Favourite Group.
However, when Pegasus Capital bought over the Six Senses and Evason brands last year (TTG Asia e-Daily, June 26, 2012), it did not acquire this particular project.
The project was to establish the country’s first Six Senses property in Ahungalla, as well as beachfront residential villas. Aitken Spence and Soneva were each expected to contribute US$10-12 million.
As Soneva did not meet some of their obligations under the agreement, the company decided to terminate the deal, said Hapugoda. Other industry sources revealed that Soneva had cash problems and was unable to raise the required equity.
The collaboration was one of many hotel projects that Sri Lankan hoteliers signed up for after the end of the country’s civil war in 2009. International hotel companies such as ITC Hotels, Minor Hotel Group, Banyan Tree Hotels & Resorts, Accor, Starwood Hotels & Resorts are among those setting up shop in Sri Lanka.
