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Rejoinder, our reply
In a rejoinder to our report headlined "Sheraton's Star At Risk" -- in its front page on 6th February, Bangladesh Services Ltd (BSD said that it has tried its best to get a world class Hotel management company for operation and management of the hotel.
BSL said that it had tried to negotiate with companies like InterContinental Hotels Group, Global Hyatt Corporation, Marriott International, Hilton Hotel Corporations, Carlson Hotel Worldwide, Accor, Wyndham Hotel Group etc.
The conditions given by the companies including Sheraton to manage the hotel were very stringent.
Conditions included complete shutdown of the hotel during renovation for a period of about two years, which would render about 600 employees of the hotel jobless and cause loss of business due to shutdown, withdrawal of the operator in the event that renovation works proposed by them are not implemented as per the schedule set by the operator, branding and managing of the hotel only after completion of renovation works etc.
Il may be further added that BSl. always intended to do the renovation in phases keeping the hotel in full operation -- a condition not accepted by the hotel management companies.
BSL, in no way, intends to downgrade the hotel's status to a 3 star hotel as mentioned in the report. In view of stringent conditions given by different hotel management companies, the management of BSL, after much deliberation. decided to manage the hotel under franchise arrangement.
BSL has invited proposals from operators with experience in operation and management of running franchises of 5 or 4 star brand hotelsof international repute.
As per the eligibility criteria stipulated in the document inviting proposals for management of the hotel of BSL under franchise arrangement, a 3 star hotel cannot participate in the bid.
Since the last date of submission for proposals for management of the hotel is upto 18th February 2009, the question of selecting a particular company for management of the hotel at this stage does not arise at all.
OUR REPLY
All the information that the BSL claimed in the rejoinder has already been published in our report.
Reinvestment and renovation is an essential part of the global hospitality business, and if the situation demands the partial or complete shutdown of the hotel for a period, that is also a part of this business.
We therefore, stand by our report.