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Sheraton Hotel for another five-year term by the month-end,
according to Hedayetullah Al Mamun, the immediate past civil aviation
and tourism secretary. Meanwhile, Bangladesh Services Limited, a
government organ that owns the five-star hotel, expects a report on
its refurbishment plan today from a technical team of Starwood Hotel
and Resorts. Starwood is the parent company of international Sheraton
chain who sent this high-powered team here in mid- September to
conduct a feasibility study on such a plan. "We are waiting for the
report, which will help us to decide on the contract renewal. After
looking into the report, we can assess the exact condition of the
hotel and areas that need prompt renovation," said Mamun, who was
transferred to another ministry just three days back. "Starwood's
recommendation will also enable us to estimate the cost for
renovation," he added. "However, we have our own assessments on the
amount of investment in renovation. If both studies match, we are
going to finalise the contract by the end of October." On receipt of
the Starwood report, BSL may appoint a quality surveyor (QS) to carry
out a cost analysis and plan for the renovation. "It is the oldest
five-star hotel in the country and is strongly in need of renovation,
including modernising rooms, bathrooms, kitchen, conference rooms,
lounge, lobby and bar," a top official of the hotel said.
"Additionally, the hotel lacks fire-life safety aspects that need to
be included in the renovation project," he said. "A world class
five-star hotel brand like Sheraton cannot maintain its standard
without this feature." Sheraton is also expecting to maintain
operating profit growth at 10 percent by year-end. The hotel's 2008
profit growth was the same, earning revenues of around $13 million.
The official also linked a revenue growth to refurbishment.
Meanwhile, Starwood extended its management contract with the
government up to November 30 , for the fourth time this year,
following a request from BSL. Starwood's 25- year-deal with BSL
expired on December 31 , 2008 , but it was extended for nine months
in four terms till November 30 , 2009.
