Sheraton likely to stay on
Starwood Hotel and Resort, the parent company of Sheraton chain of hotels worldwide, is likely to operate and manage Bangladesh's first-ever five star hotel for another term.
To this end, a high-profile Starwood team will arrive in Dhaka on Wednesday to have a negotiation with the government.
Starwood's 25-year-deal with BSL, the owning company of Dhaka Sheraton Hotel, expired on December 31, 2008 and the company later extended its contract up to March 31.
Trevor McDonald, general manager of Dhaka Sheraton, said Starwood proposals and government's renovation plan for the hotel will prominently figure the talk.
“The government's flexible stand on such renovation has prompted the Starwood to rethink renewing its contract for another term with the Bangladesh Services Limited (BSL),” the top official of the hotel said.
BSL is the state owned company that possesses more than 98 percent stakes in Dhaka Sheraton, now operated and managed by the Sheraton chain.
“We are optimistic about the outcome of the parley. If both parties agreed, Sheraton is likely to operate and manage Dhaka Sheraton for another term,” added McDonald.
Meanwhile, Sheraton has extended its management contract with the BSL for three months up to June 30.
The government has welcomed the upcoming talks with Starwood, terming the move 'a positive attitude'.
GM Quader, civil aviation and tourism minister, said the government's door is open for discussion and it desires that a world-class hotel chain operates and manage the hotel.
“We are ready to renovate the hotel immediately, but our main concern is that the hotel should be open during the refurbishment work,” he said, adding that , it should be ensured that 600 members of the Sheraton staff would not be unemployed.
“We just don't want a complete shutdown of the hotel during renovation,” Quader said. “If we can agree on these points, I don't see any problem to renew contract with Sheraton for another term.”
Earlier in February, the government cancelled a tender process, which aimed at appointing a company to manage Dhaka Sheraton Hotel under a franchise arrangement. Later BSL re-advertised for both the direct operation and management and franchise arrangement.
As many as six companies participated in the tender process, from which two were shortlisted by the BSL.
Ramada Plaza and Golden Tulip, a Dutch hotel operator, are the two.
Ramada Plaza is a three star hotel chain that lacks prior experience to manage a five star hotel and Golden Tulip has experienced recurrent losses all over the world, according to a BSL official.
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