Tuesday, August 17, 2010

Hotel Boom hits Sri Lanka

Several hotel giants are undertaking expansion, refurbishment and development plans. This come in the wake of increased demand for hotel rooms post conflict resolution. All this will help accommodate the exponential increase in tourist arrival expected. The projected inbound tourism figures are at 2.5mn by 2016. John Keells Holdings (JKH) invested 400mn LKR to upgrade and rebrand Club Oceanic to Chaaya Blu in Trincomalee.

The group has currently undertaken a 2bn LKR investment on a new 4 star 190-room hotel in the Beruwela area. Coral Gardens in Hikkaduwa, Bentota Beach and Habarana Lodge are all being given a facelift with the total renovation costing upto 1.6bn LKR. The chain also has lands in Ahungalla, Wirawila and Nilaweli, upon which new properties are planned.

Amaya Resorts and Spas development process is to be carried out in 4 stages. This includes to firstly develop the existing properties which is estimated at US$ 10 million. Next step would be to develop the available land bank. The identifies areas are – Wadduwa at a cost of US$ 15 million, Kalpitiya at a cost of US$15mn, Mirissa at a cost of US$30mn, Negombo at US$30mn. The total investment that is projected for this 2nd stage of development is approximately US$ 90mn.

Jetwing is all set to spend 700mn on rebranding and refurbishing Blue Oceanic as Jetwing Blue. Besides this the chain will spend approximately Rs500mn at Sea Shell which will be converted to Jetwing Sea and Rs400mn will be spent at Blue Lagoon. Jetwing Blue and Jetwing Sea are slated to open their doors for business in December this year.

“Given the rapid growth of tourism in Sri Lanka, Jetwing seeks to refurbish its current properties and expand its room stock through new ventures. In respect of refurbishment, Jetwing has made a conscious effort to upgrade all its properties gradually to a 4 -5 star (small luxury) properties. Already the Jetwing Blue & Jetwing Sea are underway! As regards to the new hotel ventures, Jetwing has planned to occupy ‘white spots’, by locating and developing new similar standard hotels in the East Coast, Yala, Kandy, Jaffna and Colombo, while offering to manage several other properties in the island”, states, Hiran Cooray, Chairman Jetwing Group.

Tourist arrivals have increased to nearly a staggering 48% for the month alone when compared with June 2009. The first half of 2010 has registered a 48.4% increase in inbound tourism when compared to the same period in 2010.

source - http://www.indiainfoline.com/

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