11th April 2011, www.lankabusinessonline.com, By Sanjeevi Jayasuriya
Laugfs Leisure is looking forward to take over the management or to buy hotels. It has a five year plan to aggressively enter the leisure sector by building hotels in the Cultural Triangle and in attractive locations in South coast and East coast.
The first hotel to be constructed by the Laugfs Group at a cost of Rs 500 million investment is expected to complete construction by June next year.
The construction of the hotel in Karugapam in Chilaw by Laugfs Leisure is currently under way.
“We have already started the project and the ground filling work is carried out at present. The hotel is scheduled to be completed by mid next year”, Laugfs Leisure CEO and Director Harsha Gamage told Daily News Business.
The foundation laying ceremony will be held next month. This 74 room hotel falls under the category of a small luxury hotel.
There will be an expansion to this by way of another 26 rooms in the second stage,” he said. “We see a growth in the leisure sector especially with foreign tourist arrivals. There is a need for accommodation and projects of this nature could cater to the growing demand in the industry,” Gamage said.
The Laugfs Group entered into the leisure sector in 2008 by purchasing Emerald Bay in Kosgoda and a boutique hotel Temple Tree Resort and Spa. The two hotels have recorded an increase in arrivals since its takeover.
The two hotels have recorded 50 percent growth from previous year and a turnover growth of 41 percent. Both hotels are doing well. The off season prospects are looking bright. Even for the off season there is 75 percent confirmed bookings. During the season they had recorded over 85 percent occupancy since 2009 September.
Related Info :
• Sri Lanka's Laugfs Builds a 4 Star Hotel in Chilaw