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| Tuesday, 2 March 2004 |
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Eden Hotel in Rs. 200 million package with DFCC Eden Hotel Lanka Limited (The Eden Resort and Spa) which opened as a 5-star property in Beruwela seven years ago, recently announced the proposed refurbishment and financial restructuring of the company. The company has had extensive discussions with DFCC Bank and has now concluded a financial package of Rs. 200 million, of which Rs. 150 million is earmarked for the refurbishment of the hotel. The balance Rs. 50 million will be used to convert some of the high cost debt to low cost new term loans of Rs. 50 million. Of the Rs. 200 million, Rs. 100 million will be by way of redeemable preference shares that have been taken by the DFCC Bank, Rs. 50 million by way of a loan provided by the DFCC and Rs. 48 million rights issue. The rights issue is on the basis of 1 share for every 10 currently held, which will amount to 4.8 million new shares, realising Rs. 48 million. The Confifi Group to which the Eden Resort and Spa belongs has been one of the oldest customers of DFCC. The relationship dates back to 1971 when the Confifi Group developed the Confifi Beach hotel in Beruwela. This was partly funded by a Rs. 500,000 loan from the DFCC when C. Loganathan was the General Manager of the organisation. The Confifi Group of Hotels, which includes Confifi Hotel Holdings Ltd., Riverina Hotels Limited, Confifi Beach Hotels (Pvt) Ltd and Eden Hotel Lanka Limited, have all been extended loan facilities by DFCC Bank. The close relationship with DFCC and the Confifi Group has been an ongoing one for over 30 years. The Eden Resort and Spa was the first hotel in Sri Lanka to introduce the spa concept with the construction of its purpose-built facility in 2001. The Spa at Eden is still considered to be one of the best resort spas available in Sri Lanka and benefits from the professional input of a collaboration the Group has with a 5-star spa resort in Germany. The German resort and the Eden have an ongoing exchange of know-how, training and specialized spa and ayurveda therapists. Eden Resort and Spa is the flagship property of the Confifi Group and in keeping with its policy to continuously upgrade and enhance products and services, the hotel will undergo a major refurbishment and repositioning. The hotel will be closed for three months during May, June and July 2004 during which time all the rooms in the hotel will be refurbished, two new restaurants added and a collection of luxury rooms and suites developed as part of a hotel-within-a-hotel concept. The public areas, spa, pool and landscaping will also be upgraded. All hotel staff will receive intensive retraining over a 4-month period in order to fully support the new facilities and services planned. When the new Eden Resort and Spa opens in August, it will be positioned as a fully fledged international 5-star resort, resulting in increased room rates and higher yield. The hotel has already won accolades and awards for excellence in international markets. With this major refurbishment and upgrade, the hotel will be a position to continue its award winning performance. |
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