The Colombo Hilton Hotel is undertaking a US$ 2 million refurbishment utilizing accumulated funds held in the furniture, fittings and equipment reserve of Hotel Developers (Lanka) Limited, the Hilton`s owning company.
Hotel Developers have told the Colombo Stock Exchange (CSE) that in terms of the management agreement between itself and Hilton International which manages the Colombo Hilton, a sum equivalent to US$ 700,000, is annually transferred from the operational profits of the hotel to the furniture, fittings and equipment reserve.
`The funds in this account is solely maintained by the hotel for the purpose of additions and replacements of the furniture, fittings and equipment which is required for the operation of the hotel,` Hotel Developers said in its statement.
The company said that as at July 30, 2007 approximately Rs.264 million was held in this account and there will be a drawing of US$ 2 million to be utilized for the refurbishment which has been announced.
`Priority will be given to the upgrading of the rooms,` the statement said.