Keells to invest Rs. 650 m for re-branding

Shirajiv SIRIMANE

HOTELS: John Keells Hotels will invest Rs. around Rs. 650 million to re brand four of their properties in Sri Lanka and in the Maldives this year.

Jayantissa Kehelpannala, Executive Vice President of John Keells Leisure Sector in an interview with the Daily News said the group's first branding, Cinnamon Grand, was a success and this was one reason for them to re brand more hotels.

"We also want to have a two brand approach on the identification of distinct segments of the tourist market, as Sri Lanka grows as a destination," he said.

The Village Habarana will be the second hotel to be re branded by the end of April and the group will invest Rs. 250 million. The rooms, pub and several other areas have been re done.

Hakuraa their property in the Maldives was damaged after the tsunami and has been completely refurbished with an investment of US $ 3.2 million. It is to be re branded in July.

Yala Village, which came under the wings of the Keells Holdings last year and Citadel Kandy are the other two hotels to be branded in November and September this year. The investment for this would be around Rs. 50 million.

He said funds within the group were re invested and they are hoping that the returns would be in four years from the Maldives and five to six years from Sri Lanka.

The new brand is entirely homegrown and would be launched at the World's largest travel exhibition, ITB, which would commence from next Wednesday in Berlin. The brand had been produced by a local team and will carry a sanskrit name.

Speaking about their other properties he said they have a plan for Beach Hotel Bayroo, which was completely damaged by the tsunami.

Asked as to why they delayed the re construction he said it was because of the 100 meter buffer zone which was imposed by the government soon after the tsunami. Keels are planning to convert Beyroo to a upend luxury hotel.

They are also hoping to upgrade both Coral Gardens Hikkaduwa and Club Oceanic Trincomalee. "We are also looking at a new property in the Maldives," he said.