Club Hotel Dolphin Targets Rs500mn following Refurbishment

04th October 2010, www.dailynews.lk, By Charumini de Silva

Serendib Leisure Management Ltd targets a turnover of Rs 500 million this financial year. The company also targets Rs 650 million in next financial year through their newly refurbished Club Hotel Dolphin in Waikkal.

Hemas’ Club Hotel Dolphin in Waikkal underwent a Rs 530 million refurbishment from May to September this year. Out of the total investment, Rs 370 million was from borrowings while the balance was from the company. The hotel is endowed with a dual personality with a vibrant active play side and a peaceful and quiet pause side, Serendib Leisure Management Chairman Abbas Esufally said.

The hotel recorded a turnover of over Rs 364 million with a profit (before tax) of Rs 72 million. “We expect a turnover of Rs 500 million during this financial year and hope to increase it to Rs 650 million in the next financial year,” Esufally said.

Club Hotel Dolphin General Manager Chamin Wickramasinghe said the hotel’s star class will be upgraded to a four star from November and the hotel is ready to welcome guests in the winter season as a newer and a better up market property.

There will be another 50 rooms added by 2012 under the second phase of the property’s master plan of refurbishing and the banquet facilities will be improved under the third phase.

“There is a commendable demand for banquet functions. There was Rs 17 to Rs 20 million revenue generated through banquet functions last year. With the developments in the banquet facilities we expect to increase the revenues from banquet facilities to Rs 30 to 35 million,” he said.

The average occupancy rate at present is 85 percent. The hotel expects that it will improve during the winter season.

Nevertheless, the occupancy rates are better than last year and for the winter season there are over 50 percent reservations.

The main markets are the UK, Germany, Italy, Holland and India. “The European market is our main focus as they visit throughout the year unlike the other markets,” he said.

Minor Intl Anantara & Hemas Serendib Buy Kani Lanka Resort, Kalutara, Sri Lanka for $22mn

10th August 2010, www.dailynews.lk

Minor International of Thailand together with its local partner Hemas Holdings, and through its subsidiary Serendib Hotels has acquired 100 percent shares of Cyprea Lanka, the owner and operator of Kani Lanka Resort and Spa, Kalutara.

The total acquisition and development cost of the property is estimated at US$ 22 million.

Kani Lanka Resort and Spa is spread across an 18 acre stretch of land situated at the tip of the river mouth of the Kalu Ganga in Kalutara, on the south western coast of Sri Lanka.

The 105 room four-star resort enjoys a spectacular view of the river and the sea.

The new owners plan to upgrade the existing property and develop a new resort under the ‘Anantara’ brand that will consist of 120 luxury rooms.

This will be the first-ever ‘Anantara’ branded resort in Sri Lanka and the first international chain of luxury hotels to come into post-conflict Sri Lanka. ‘Anantara’, a well-known brand around the world for its luxury resorts, is a member of Small Luxury Hotels of the World, Leafing Small Hotels, Virtuoso and the Kiwi Collection. Chairman/CEO of the Minor Group William E. Heinecke said Minor is delighted to bring its Anantara brand to Sri Lanka.

“The country has shown great promise, especially in the aftermath of the protracted civil disturbances. With Sri Lanka’s legendary hospitality, vast cultural diversity and infinite variety, I have no doubt that this partnership will transcend the envisaged goals and make Sri Lanka one of the top end destinations in the region,” he said.

Hemas Holdings Director and Serendib Leisure Management Chairman Abbas Esufally said time is ripe to re-define the boundaries of conventional tourism and explore new and bolder ventures.

“With 2011 being declared as ‘Visit Sri Lanka’ Year, and with the 750,000+ expected tourists, the potential is massive. Now is the time for all stakeholders to get together and get ready for 2011. Hemas is proud to partner with an organisation of the calibre of the Minor Group and its internationally acclaimed ‘Anantara’ brand.”

The newly acquired property will be managed by Serendib Leisure Management.

Thailand's Minor to Build or Buy Hotels in Sri Lanka

08th May 2010, www.lankabusinessonline.com

Bangkok-based Minor International is looking to buy or build beach resorts in Sri Lanka, after the island emerged from a 30-year war and prospects for tourism brightened, a media report said.
Minor, which runs 'Anantara' branded hotels is Thailand's biggest hotel and fast food chain operator.

"We are now more optimistic about the potential in Sri Lanka," Chief Executive Officer William Heinecke was quoted as saying by Bloomberg newswires while on visit to Sri Lanka.

"Our focus is around the Indian Ocean, and we do have a substantial budget approved for expanding. We see good returns in Sri Lanka."

Minor is building its fourth resort in the Maldives. In 2007, Minor bought 20 percent of Sri Lanka's Serendib Hotels.

Heinecke said they were considering investing in properties in the southern and eastern coasts.

Following the end of the war with Tamil Tiger separatists, interest has been renewed especially in Sri Lanka's east coast, parts of which was under Tiger control during the war.

Minor also operates hotels in Thailand under the Marriott and Four Seasons brands and runs Thai franchises for Burger King Swensens, Pizza Company and Coffee Club.

Bloomberg quoted Heinecke as saying that "preliminary discussions" were held on developing restaurant brands.