July 5, 2011 (LBO) – Hong Kong based Shangri La group’s two hotels in Sri Lanka which are now in the final design stage will cost as much 630 million US dollars to build, chief financial officer Madhu Rao said. The group bought a six acre block of state land in Colombo’s ‘Galle Face’ beach front for 125 million US dollars to build a 500 room hotel, shopping and apartment complex.
“The design takes a long time freeze because of the integrated structure we have to careful that whole thing is very seamless,” Rao said on the sidelines of an economic forum in Colombo.
“Right now soil tests will start. Once the designs are frozen then only the foundation work will start.”
He said the Colombo project will start “well before the end of the year.” The hotel is expected to open in 2014.
The Colombo projects room may have a little more than 500 rooms once designs are complete, he said.
The resort in Hambantota will have 300 rooms and 50 villas. The resort may cost between 120 to 130 million US dollars to build, Rao said. It is expected to open in 2013.
The group entered Sri Lanka after a 30-yer war ended in 2009 raising the prospects for its tourist industry. Arrivals rose 40 percent in 201