Six Senses deal with Aitken Spence off
View(s):Aitken Spence Hotels has terminated its widely-publicised deal with Asia’s Six Senses Group after the latter was unable to put in sufficient cash to fund resort projects in Sri Lanka.
This was stated in a, announcement to the Colombo Stock Exchange where Aitken Spence noted that they had decided to terminate the agreement entered in with the Six Senses Resorts and Spas, the Favourite Group and its associates.
The Six Senses hotel and resort project was set to attract US$50 million with both parties having an equal share in the project.
Aitken Spence Hotels Management Managing Director Malin Hapugoda told the Business Times, “They did not fulfill some of the obligations of the agreement entered into and the board has decided to take it off”.
Other sources said that Six Senses “had financial problems and they could not come up with their equity,” as the reason for the termination of the agreement with the international resort and spa.
It is learnt that both parties were supposed to inject about US$10-12 million each into the said project. However, the project that was supposed to kick off last year never got underway which at the time was blamed on other reasons.
Six Senses, was said to have sold their brand name but were unable to come up with their part of the equity for the project in Sri Lanka. The Six Senses group was acquired by a US-based private equity fund manager Pegasus Capital Advisors from its founder and former CEO Sonu Shivadasani, according to an earlier announcement by the Bangkok-based group.
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