HILTON COLOMBO

Hilton Colombo Completes First Stage of Guest Room Renovation Project, Signaling a New Era of Growth and Profitability

Extensive renovations and strategic initiatives mark a milestone in Hilton Colombo’s transformation journey.

Hotel Developers Lanka Limited is pleased to announce the successful completion of the first phase of its comprehensive guest room renovation at Hilton Colombo. This milestone marks a pivotal step in the hotel’s ongoing transformation journey. The renovation initiative is part of a strategic effort to elevate the property’s market positioning in a highly competitive hospitality landscape, while also aligning with the positive trajectory of Sri Lanka’s tourism sector and its promising outlook. With a rich legacy of over 35 years in Sri Lanka’s hotel industry, Hilton Colombo offers 368 elegantly appointed guest rooms and suites, upgraded public spaces, a contemporary coffee shop, state-of-the-art banquet and meeting facilities, a lounge and bar, and an array of restaurants, all delivering world-class service that aligns with the Hilton brand’s global standards

As part of its broader strategic roadmap to transform the company into a highly efficient and profitable operation, the Company undertook several key financial and operational initiatives in 2025. These included a successful debt refinancing, which delivered significantly reduced borrowing costs and enhanced financial flexibility, a critical step towards its restricting efforts directly contributing to improved profitability and ensuring long-term financial sustainability.

In addition to the successful debt refinancing, the Company undertook a series of cost-optimization initiatives aimed at enhancing operational efficiency and driving sustainable profitability. These measures included streamlining payroll operations, reducing other operational and administrative overheads, all strategically implemented to improve cost structures and strengthen the bottom line.

Looking ahead, the hotel will also focus on reinforcing its commercial and marketing capabilities by allocating the necessary resources to effectively drive revenue growth and maintain a strong competitive position in an increasingly dynamic market environment.

In a historic achievement, the Company is optimistic about returning to profitability for the first time in eight years, reflecting the effectiveness of its strategic turnaround initiatives and sustained operational excellence. This milestone is particularly significant given the increasingly competitive landscape, marked by the addition of over 1,000 new rooms with the recent entry of several prominent 5-star hotel chains into the market.

Looking ahead to 2026, Hilton Colombo plans to implement further revenue-enhancing strategies. Among the most anticipated developments are the construction of the long-awaited Sri Lankan Curry Leaf Restaurant and the modernization of the hotel’s flagship Grand Ballroom. These projects are expected to significantly expand the property’s food & beverage revenue footprint and enhance the profitability.

In alignment with the company’s profitability objectives, the Company is also in the process of renegotiating its Management Agreement with Hilton Worldwide Management Corporation. This initiative is aimed at optimizing operational terms to enhance overall value for the company and its stakeholders.