Sri Lanka's LOLC Leisure Buys Jetwings Tropical Villas in Beruwala Golden Mile Beach

17th August 2010, www.island.lk

LOLC Leisure, controlled by Lanka Orix Leasing Company PLC has acquired a 60 percent stake, or 6.2 million shares, in Jetwings Tropical Villas beach resort for Rs. 310 million, the company said in a filing with the Colombo Stock Exchange last morning.

"In May this year the LOLC Group made its maiden entry in to the leisure sector by acquiring three hotels namely Palm Garden, Riverina and Eden hotels. With the acquisition of a fourth hotel adjacent to these three, LOLC Leisure limited has now increased its footprint to over 25 acres of prime beach-front land, located on one of the best stretches in the South of the country referred to as the ‘Golden Mile’," the company said.

Quoting Central Bank data, it said the hotels and resorts sector contributed a negative 16.7 percent to the economy during the first quarter of 2009. After the war, the sector made a spectacular recovery to post a 61 percent growth during the first quarter of this year.

"The group is in the process of examining the acquisition of suitable land and conducting studies to launch similar ventures in the East coast of the country," the company said.

Sri Lanka's Beruwela Golden Mile to have Rs 3bn Hotel Project. 300 Room 4 Star Chaaya Bey Hotel

07th August 2010, www.island.lk, by Harischandra Gunaratna

One of the country’s biggest resort hotel projects kicked off yesterday along the `Golden Mile’ on the Beruwela coast when Economic Development and Investment Minister Basil Rajapaksa laid the foundation stone for the three billion rupee Chaaya Bey hotel, a 200-room four-star property on 11 acres of beachfront land.

President Mahinda Rajapaksa later visited the site and examined plans for the luxury property due to be completed in 20 months as its owners, the John Keells Holdings Group, the country’s biggest conglomerate, gears to take advantage of the anticipated tourism boom.

"We are quite excited by the prospects,’’ JKH Chairman Susantha Ratnayake said on site. "The tourism industry is buoyant and we want to capitalize on the opportunity and have committed Rs. 6 billion for new projects – building new properties and refurbishing existing ones.’’

Ratnayake said that JKH has both the organizational and financial capability to seize the unprecedented development opportunities that have opened up, particularly in the leisure industry.

The new hotel is coming up on what was previously the location of Hotel Bayroo that was flattened by the December 2004 tsunami. JKH acquired the adjoining five acres too to build the new hotel whose Rs. 3 billion price tag includes the cost of land acquisition.

Among the new projects in the JKH pipeline is an upmarket hotel at Pulmoddai in the East where the Yan Oya flows into the sea, refurbishing Habarana Lodge into a five-star and expanding Reefcomber at Hikkaduwa to a new look hotel with 154 rooms against the previous 64.

"We are also looking at new developments in the South where there is plenty of scope,’’ Ratnayake said.

JKH Deputy Chairman Ajit Gunawardene said that seafront land in the South is hard to find and the `Golden Mile’ was the most sought location.

"Bey with 200 rooms and an array of restaurants will be a benchmark for quality and class in Sri Lanka’s tourism industry,’’ he promised. "It will play a significant part in bridging the deficit (of quality accommodation) on the Southern coast.’’