Out with Sheraton, in with a new name

Dhaka, April 29: Iconic hotel brand Sheraton is finally ending its operation in Bangladesh after a long stay of 27 years, and state-owned Bangladesh Services Ltd (BSL) that owns the hotel is going to take over its operation and management.

From May 1, the state-owned hotel is going to be named Ruposhi Bangla, and it will be the title name of the hotel from now. The BSL has called a press conference on Saturday in this regard.

Ruposhi Bangla, a new company formed by the BSL and to be run by the Sheraton's present staffs, will be the management operator of the hotel for an interim period until the government finds a world class company to run the hotel.

Lutfur Rahman, managing director of the BSL, is likely to be the chief executive officer, while Mahfuzur Rahman, director of sales and marketing of Dhaka Sheraton, will be the general manager of the new hotel, said a top official of the hotel, asking not to be named.

The BSL also takes over the 400 regular employees of Dhaka Sheraton, and would pay salaries and other facilities to all the staff members until a new company takes over.

Meanwhile, the government has started looking for an international hotel chain to operate and manage the hotel, and shortlisted a number of companies, including InterContinental Hotels & Resorts, Marriott, Swiss Hotel and Kempinski Hotel, he said.

Sheraton was supposed to fold its business by March 31 as the international hotel-chain brand and the government differed on operating conditions. Later, it extended its stay by a month upon government request so that the BSL gets a month more time for preparation.

Starwood Hotels and Resorts that operates under the brand name of Sheraton had a 25-year deal with the BSL, which expired on December 31, 2008. The company had since extended its contract 10 times.

Since 2009, Starwood had been pressing for a complete renovation of the hotel's rooms, kitchens, conference rooms, bathrooms, lobbies and bars.

However, Starwood and the government failed to reach an understanding over issues, such as the renovation cost, the right to choose and hire construction team, and the deadline to complete the construction work.

Starwood was too strict to be flexible to the government request to ease the conditions, which eventually stopped both parties to reach an agreement.

Last year, Sheraton earned revenue of around Tk 102 crore, up from Tk 80.5 crore in 2009. The hotel made an operating profit of nearly Tk 50 crore, a sharp rise of 47 percent from that of 2009, amid intense competition from its new rivals in the hospitality sector.

Source: The Daily Star