Starwood Hotels and Resorts Worldwide, one of the top global hotel chains, has assented to manage the state-owned Dhaka Sheraton Hotel for another term on condition of its complete renovation, a senior official said.
In a recent letter to the state-controlled Bangladesh Services Ltd (BSL), owner of the hotel, Starwood has imposed the condition to renovate Sheraton for maintaining its worldwide brand standard. It said renovation within one year is a must, as the hotel is rapidly losing its market because of failure to woo more guests.
However, the BSL officials hinted that the state body is not at all interested to renew its agreement with Starwood this time, as the US-based company has already signed a management deal with Westin Hotel at Gulshan. Besides, complete renovation of the hotel will cost a huge expenditure.
Starwood's condition came as its 25-year agreement with BSL to manage and operate Dhaka Sheraton is set to expire by December this year.
Earlier in April, Starwood expressed its reluctance to renew agreement with BSL to manage the state-owned hotel for another period, as the owner had refused to renovate the hotel in line with its demand.
Against the backdrop, the BSL board is holding a meeting tomorrow (Monday) to discuss Starwood's conditional offer with BSL Chairman and Secretary of Ministry of Civil Aviation and Tourism Syed Md Jubair in the chair.
Officials said the board meeting would also discuss the proposals made by at least four top five-star hotel chains with presence all over the world to manage Dhaka Sheraton, the country's first international five-star hotel.
Famous hotel chains including Hyatt Regency of USA, Novotel of France, Marriott and Shangri-La have already contacted BSL to take over its management.
The BSL board might discuss time frame for floating international bid to appoint new operator for the hotel, if there is no consensus to start negotiation with Starwood, a senior official said.
"In the meeting, we will discuss whether the BSL will start negotiation with Starwood or not, as complete renovation of the hotel will cost a huge expenditure," he added.
Officials also said it is not true that Dhaka Sheraton Hotel is loosing its market share and failing to impress more guests. Sheraton's revenue grew six per cent to $11.27 million in 2007, with an operating profit of $4.16 million, and a market share of 27.5 per cent.
The United States-based Starwood was assigned to operate Dhaka Sheraton in 1984 for a twenty-year period. It renewed the deal for a further five years until December this year.
Prior to Starwood, the US-based Hotel Intercontinental managed the hotel between 1966 and 1983, which was then known as Dhaka Intercontinental.
