Monday, July 19, 2010

Sri Lanka hotel room rates to be upped 20-pct in winter: official

July 19, 2010 (LBO) - Sri Lanka's leisure operators will push up room rates by about 20 percent in the coming winter season, amid a post-war tourism boom that has seen a near 50 percent jump in arrivals, officials said.
"In the coming winter most of the hotels have increased rates in hard currency by over 20 percent," Jetwing chief Hiran Cooray told a forum in Colombo.

"Some of the improved and repositioned hotels will get even more. There has to be proper product development to get prices as well."

The Jetwing group operates a string of resort hotels around the country of over 500 rooms, ranging from a luxury eco-resorts to 4-star beach hotels.

A 30-year war ended in May 2009 and tourism arrivals have since picked up. In the six months to June 2009 arrivals were up 48 percent to 278,000. Officials are expecting 600,000 tourists this year up from 447,000 a year earlier.

John Keells Holdings said it had seen an immediate increase in its coastal resorts and in the central hills where it has 760 rooms. Occupancy and rates at its two 5-star rated hotels with 840 rooms had almost doubled.

At Cinnamon Lakeside in Colombo occupancy had jumped from 40 percent before the war ended to over 80 percent now, Krishan Balendra, the group's head of corporate finance and strategy told a forum organized by Acuity, an investment bank earlier this month.

Average room rates which were hovering around 40 to 50 dollars average,are now over 70 dollars at Cinnamon Lakeside, he said.

"At Cinnamon Grand, a similar picture; occupancies of over 80 percent in recent months from around 40 percent before the war ended. And room rates of over 90 dollars from around 50 dollars before the war ended."

source - www.lbo.lk

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