Shangri La's Seven Star hotel Insurance Deal signed up by Ceylinco Insurance?

Shangri-La development site in the heart of Colombo,Sri Lanka

According to top end exclusive sources from Sri Lanka’s leading Insurance giant, Ceylinco Insurance PLC; it had signed up for insurance deal with the upcoming US $ 500 million investment on a Sri Lanka's first ever Seven Star hotel, that is going to be owned by world famous hotelier Hong Kong-based Shangri-La group.

This was confirmed to CSE Leaks; by an exclusive high profile Director who holds Director Posts in a number of Ceylinco companies, “Yes Partly” said (answering to CSE Leaks' question on whether Ceylinco Insurance has got the Shangri La Hotel Insurance deal) the top Director type who is also one of the Deputy Chairmen of a sub group of Ceylinco; at a recently concluded high profile social of a new beverage company IPO launch.

In the high time sources reveal that, somewhere back in last week of October, Ceylinco Insurance PLC has send one of its officials to Singapore to sign the Shangri-La Insurance deal following the three day visit of Shangri-La head’s visit to the Sri Lanka.

Accordingly, CSE Leaks learns from Sri Lankan corporate sources that Ceylinco Insurance is sitting on a wealth management portfolio where island nation’s top companies insured under its policies such as HSBC-Sri Lanka, along with several other Banks and afforesting companies such as Touchwood PLC.

On the contrary another source from insurance industry in Sri Lanka told CSE Leaks that if Ceylinco has got insured the Shangri La hotel property that it will in turn boost the revenue of Ajita De Zoysa owned ADZ Insurance Brokers of Sri Lanka as many of Ceylinco’s Life and General Business that has to be Re-Insured has been Re-Insured via ADZ Insurance Brokers which has a partnership with one of the world’s leading risk managing and reinsuring  service provider Marsh.

Measnwhile, sources close to ADZ Insurance Brokers says that company is expecting to reach revenue amounting almost Rs.1 billion during this year.

During the last quarter of 2010 Hong Kong Based Shangri La Asia Limited announced the purchase of six acres of government land facing the Galle Face green promenade, a prominent landmark in Colombo, Sri Lanka.  The development will be a multi-use complex with high-end retail facilities, deluxe apartments and a 500-key luxury hotel to open in early 2014.  The purchase marks the entry of the hotel group into Sri Lanka, often referred to as “The Pearl of the Indian Ocean.” says Shangri la’s corporate website.

Shangri-La is also planning to develop a second property, a 300-key city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka, to be opened up in 2013.

“Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage, and above all it is well recognised for its warm and hospitable population.  The local government is fully committed to rebuilding the economy following the end of three decades of conflict and we believe that Shangri-La will be able to assist in positioning the country as a prime global tourist destination.  Both Shangri-La hotels strategically fit into the group’s ongoing expansion plans to link the Indian subcontinent and our South East Asia developments,” Greg Dogan, President and CEO of Shangri-La International Hotel Management Ltd. reported to have said.

It is reported that Shangri-La Hotel chain had paid a premium price amounting to US $ 125 million for the property at Galle Face (Army headquarters) while the average price of a perch was around Rs.8.5 million.

Hong Kong-based Shangri-La Hotels and Resorts, one of the world’s premier hotel companies, currently owns and/or manages 70 hotels under the Shangri-La and Traders brands, with a rooms inventory of over 30,000.  Over almost four decades the group has established its brand hallmark of ‘hospitality from the heart.’  The group has a substantial development pipeline with projects in Austria, Canada, mainland China, India, Macau, Malaysia, Philippines, Mongolia, Russia, Qatar, Sri Lanka, Turkey and United Kingdom.