An internationally reputed resort hotel operator, Banyan Tree Holdings, has linked with the Asian Hotels group of companies to manage the Rs. 250 million Crescat City that is now being developed in what is widely regarded as one of Colombo’s prime sites on the 12-acre grounds of the Colombo Plaza Hotel (Formerly the Hotel Lanka Oberoi).

Banyan Tree will run Crescat City’s Angsana Spa on a revenue sharing arrangement whose details were not disclosed at a Colombo news briefing last week. This information was described as "commercially sensitive."

The Angsana City Club and Spa will be a wholly owned subsidiary of Crescat City with its management and operations coming under the internationally renowned Angsana Spa - a part of the luxury Banyan Tree Hotel chain.

Mr. Thilan Wijesinghe, a former head of the BOI now serving as group head of strategy at Asian Hotels, the owners of the Colombo Plaza, Crescat Residencies and major shareholder of Trans Asia Hotels, said the spa would include a 250 square metre swimming pool and parking for 350 cars.

He was confident that the development of this spa would enhance the value of apartments, both sold and unsold, at the Crescat Residencies and also improve occupation and rates of the hotel adding value to the entire Asian Hotels’ Kollupitiya property.

Mr. K. P. Ho of Angsana indicated that they will also manage the Deer Park Hotel belonging to the Jinasena Group and it was likely that an aborted Ahungalle hotel project with JKH would be resuscitated. This project was abandoned in 1993 following the assassination of President Premadasa.

Ho saw "very bright prospects" for Sri Lanka now and described the Asian Hotels property as "the prime site in Colombo." He expected the new Angsana Spa to be "the jewel in the crown."

Mr. Nick Clayton, joint managing director of Crescat Development said they have already got municipal approval for two new residential towers - one overlooking the Beira Lake and the other over the existing Crescat Boulevard to be built on this propert. He said that there would also be other opportunities to develop land in and around Crescat over the next five years.