Sri Lanka LOLC Closes 3 Beach Hotels for Refurbishment. New Hotel Management Company to Transform them into the League of Best Beach Hotels in Asia

09th May 2011, www.lankabusinessonline.com

Sri Lanka's LOLC group has closed three beach hotels it acquired recently - Riverina, Club Palm Garden and Tropical Villas - for refurbishment and modernisation.

The three hotels will be closed for business for 18 months from May 01, 2011 "to complete an accelerated refurbishment programme," a stock exchange filing said.

"This comprehensive property improvement which will be supported by a substantial investment will transform the three hotels into the league of the best beach hotels in Asia," it said.

"After being upgraded the hotels will be managed by a globally reputed hotel management company. The final negotiation with the international operator is expected to be concluded shortly."

Tropical Villas, a beach resort with 50 luxury villas in Beruwela, on the south-west coast was the latest hotel acquired by the LOLC group through a subsidiary, LOLC Leisure.

In May 2010 LOLC group entered the hotel sector by buying three hotels from the Confifi group; Palm Garden, Riverina and Eden, also in Beruwela.

At the time the LOLC group said the acquisition of the fourth hotel means LOLC Leisure has over 25 acres of prime beach front land located on one of the best stretches of beach in the south of the country referred to as a 'Golden Mile'.

The company said it plans to develop all the four hotel properties as a complex of beach hotels under one umbrella.

LOLC said at the time it was holding talks with a "few world-renowned hotel chains" that have shown interest in establishing a partnership with the LOLC group to manage the hotels.

Related Info :

• LOLC Seeks Hotel Chains to Rebrand & Manage Confifi Hotels

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

• Lanka Orix Leasing Company, LOLC, Gets Central Bank Approval to Operate as a Holding Company

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.