CONCEPT PAPER

HOTEL GALLE HERITAGE

(Renovation project 2013)

Shavi J.
13/11/13

BACKGROUND
Hotel Galle Heritage is a Colonial Hotel situated in Galle, with large spacious halls and long
Verandahs adorned with antique furniture. Terraced gardens at different levels surround the hotel which
is situated in the old Galle harbor, one of the best locations in Sri Lanka. The architecture is in keeping
with the Dutch heritage of Sri Lanka and the hotel is one of the select few hotels to successfully preserve
the rich colonial past of Galle.
LocationGalle Heritage is 3 km from the Galle Fort, a World Heritage site and 4 km from Unawatuna,
acclaimed to be one of the 10 best beaches in the World. To arrive at the hotel use the Galle - Matara
Road and turn into Magalle harbor Road leading into the Galle old harbor.
Address : No: XX, Magalle, Galle, Sri Lanka.

Project scope : Local.

History
Captain G.Burry was the D&P agent and he acquired an island and built a magnificent mansion in
1860 and named it Villa birdz after his wife. The D&P used as its device the Rising Sun which is used as
a feature in the building.
Galle Heritage has remained in the XXX family and is today preserved as a Colonial Hotel for the
enjoyment of its many visitors.
Challenge
The Sri Lanka Tourism Strategy for the period 2011 to 2016, launched in November 2011, aims to
welcome 2.5 million arrivals by 2016.To accomplish that goal government anticipate to develop the
tourism trade by extending grants. So we anticipate to expand our facilities to attract more arrivals by
2016.Due to above reasons other competitive firms already started strategy plans for their future
expansions and this simultaneously arise the risk of endurance of Galle Heritage (Pvt) Ltd .So there is an
essential reason to expand our services and facilities.
Suggested solutions and strategies.

Renovate existing facilities, services and introduce new technologies.

-Recreate kitchen and restaurant and value addition.
-Human resources management and efficiency enhancement.
-Develop communication (Let them know about culture & beauty of Sri Lanka and the
beautiful environment surrounds the hotel)
-Efficient use of energy and power
-Service providing development.
Maintain & repair renovated facilities, services and technologies.
- Purchase the service of industrial consultants.
Ball park cost - Rs. 20,426,000/=
Duration-2 years (Renovation period: 1 year. Maintain period: 3 5 years )
Cost Benefit Analysis
-Recreate kitchen and restaurant and value addition Rs 8,890,322/=
-Human resources management and efficiency enhancement.-Rs 3,236,824/=
-Develop communication (Let them know about culture & beauty of
Sri Lanka and the beautiful environment surrounds the hotel)

Rs 8,208,922/=

-Efficient use of energy and power

-Service providing development.

Constraints
Project plan should be approved by following authorities and the project development and construction
should be compatible with their conditions.
Sri Lanka Tourist Development Authority (SLTD).
Municipal Council Galle.(Construction plan)
Central Environment Authority (Solid waste management plan)

Project duration should be within the above mentioned period.

Assumptions
Successful completion of the project would be increase the customer attraction by 40%.
Suitable financing of 50% debt and 50% equity can be arranged.
Inflation will remain at the average annual rate of 6.5%.
Government regulations will not be changed during the construction period.
The prices of goods and services which are expected to buy will not be increased by 5%.
Power unit price will not be increased by 8%.
The rate of interest is assumed at 9% per annual.
Constructions can be completed within 6 months and the fully renovated hotel could be open for services
within a year.