SHDL breaks ground for $40m first 5-star hotel in Chittagong
Thursday, 14 May 2009
Mushir Ahmed
Sena Hotel Development Limited has broken ground for the first five star hotel in Chittagong, hoping to tap into the growing business stature of the country's lone port city, its chief said Tuesday.
Brigadier General Manzur Quader said the Water Garden hotel near the Chittagong Club would cost Tk2.80 billion (US$40 million) and would be the largest in the southeastern city with more than 200 rooms.
"It will be first five star hotel in Chittagong, with the first three floors dedicted for service centers, a big hall to accommodate 2000 people and a glass-walled sea-view restaurant at the top," he said.
"We are going to finance the project from our own coffer. We won't take any loan from any bank."
The SHDL, an arm of army welfare association and Sena Kalyan Sangstha, is negotiating with global hotel chain Radission to take over the management of the hotel once it goes into operation in early 2013.
"We have made some progress in our talks. Radission has shown keen interest to manage the hotel," he said.
The global hospitality giant already made SHDL's first Water Garden hotel on the airport road the most successful in the country with over 82 percent average occupancy.
The Radission Water Garden in Dhaka makes about Tk50 million net profit a month and last year deposited Tk160 million as Value Added Tax (VAT) --- higher than any of its five other top competitors.
Quader said rising importance of Chittagong as the commercial capital and tourism potential around the port city prompted them to set up the hotel.
"We did a fesibility study and we have found that there is an immediate need for a quality five star hotel in the port city. We, therefore, made a very aggressive move," he said.
SHDL would also use the Water Garden as the hub for tapping into growing tourism interest in the hill tracts, Cox's Bazar and Kaptai Lake.
"We will initiate day-long cruise in the Kaptai Lake and offer package trips to scenic Rangamati, Bandarban and the beach town of Cox's Bazar," he said.
"It would be profitable like our hotel business."
The SHDL's move comes months after local group AK Khan unveiled its own plan to build a five-star hotel jointly with Dusit Thani of Thailand.
The group is awash with cash it got after selling off its stake in AKTEL mobile phone for $350million. Its hotel would have 200 rooms although the company has yet to select site.
Chittagong has only a couple of three star hotels more than 250 rooms. Many who found discomfort in the hotels have to come back to the capital or stay the night at Chittagong Hotel.
After the success of the Radission Water Garden in Dhaka, the company has also set its eyes on Khulna where it is going to refurbish a hotel owned by SKS and make it a center point for tourism in the Sundarbans.
Sena Hotel Development Limited has broken ground for the first five star hotel in Chittagong, hoping to tap into the growing business stature of the country's lone port city, its chief said Tuesday.
Brigadier General Manzur Quader said the Water Garden hotel near the Chittagong Club would cost Tk2.80 billion (US$40 million) and would be the largest in the southeastern city with more than 200 rooms.
"It will be first five star hotel in Chittagong, with the first three floors dedicted for service centers, a big hall to accommodate 2000 people and a glass-walled sea-view restaurant at the top," he said.
"We are going to finance the project from our own coffer. We won't take any loan from any bank."
The SHDL, an arm of army welfare association and Sena Kalyan Sangstha, is negotiating with global hotel chain Radission to take over the management of the hotel once it goes into operation in early 2013.
"We have made some progress in our talks. Radission has shown keen interest to manage the hotel," he said.
The global hospitality giant already made SHDL's first Water Garden hotel on the airport road the most successful in the country with over 82 percent average occupancy.
The Radission Water Garden in Dhaka makes about Tk50 million net profit a month and last year deposited Tk160 million as Value Added Tax (VAT) --- higher than any of its five other top competitors.
Quader said rising importance of Chittagong as the commercial capital and tourism potential around the port city prompted them to set up the hotel.
"We did a fesibility study and we have found that there is an immediate need for a quality five star hotel in the port city. We, therefore, made a very aggressive move," he said.
SHDL would also use the Water Garden as the hub for tapping into growing tourism interest in the hill tracts, Cox's Bazar and Kaptai Lake.
"We will initiate day-long cruise in the Kaptai Lake and offer package trips to scenic Rangamati, Bandarban and the beach town of Cox's Bazar," he said.
"It would be profitable like our hotel business."
The SHDL's move comes months after local group AK Khan unveiled its own plan to build a five-star hotel jointly with Dusit Thani of Thailand.
The group is awash with cash it got after selling off its stake in AKTEL mobile phone for $350million. Its hotel would have 200 rooms although the company has yet to select site.
Chittagong has only a couple of three star hotels more than 250 rooms. Many who found discomfort in the hotels have to come back to the capital or stay the night at Chittagong Hotel.
After the success of the Radission Water Garden in Dhaka, the company has also set its eyes on Khulna where it is going to refurbish a hotel owned by SKS and make it a center point for tourism in the Sundarbans.