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Friday, September 2, 2011

Sanken Lanka, JKH in Rs. 2.9 bn deal

Colombo gets 25-storey, 240-room business hotel
Construction company Sanken Lanka (Pvt) Limited and blue-chip conglomerate John Keells Holdings are planning to develop "a state of the art 25 storey, 240 room business hotel in the heart of Colombo".

"The project is a Joint Venture with Sanken Lanka (Pvt) Limited who will be the major shareholder whilst John Keells Holdings will take a minority stake. Sanken Lanka will be the main contractor for the project which will be on a Design & Build basis with Design Team 3 of Singapore being the project Architects. The total investment would be approximately Rs 2.90 billion. Keells Hotel Management Services Limited will be the hotel operator who will take over the management once the project is completed," a statement issued by John Keells Holdings said.

"The Hotel would offer state of the art modern in room guest facilities, including a 160 pax restaurant on the 24th Floor with a roof top swimming pool, bar, open air lounge and gym facilities offering a panoramic view of the city. The construction would take approximately 33 months to completion and commercial operations to commence thereafter.

JKH will launch a new brand in six months which will convey the efficiency of a conventional value brand whilst offering a design of a chic boutique business Hotel.

Ajit Gunewardene, Deputy Chairman, John Keells Holdings said, "Based on our long term strategy, we believe that Colombo requires an efficient and modern business hotel offering ultra-comfort with efficient services at a competitive price for the business traveller. This project would be just the start in taking our strategy forward while adding to and complementing our brand portfolio. Our goal in the medium term would be to develop a capacity of around 1,000 rooms in this segment".

The City of Colombo currently has a room capacity of approximately 500 – 600 rooms in the 3 star and lower categories which are totally inadequate given the expected surge in demand in business related travel in the next 2 to 3 years. The opportunity to attract a larger part of this segment specially the incentive traffic and conferences space in the sub-continent is immense.

source - www.island.lk