John Keells invests US$ 5m to upgrade properties

Shirajiv Sirimane in London

John Keells Group has invested over US$ 5 million over the past 18 months to upgrade their properties said Deputy Chairman, John Keells Holdings Ajit D. Gunewardene.

He told Daily News Business they are very positive on the leisure industry in Sri Lanka and would keep on investing more next year as well.

He said these investments were made to upgrade and re-brand both Habarana Lodge and Habarana Village and bring them under their Chaaya and Cinnamon brands.

A further US$ 500,000 was invested to upgrade and re-brand the Citadel Kandy. The first three months of the year were unimpressive due to the local ground situation and it improved in the next quarter. Things are improving from August and we are expecting a decent winter season," he said.

The company which started a re-branding exercise three years ago with Colombo Plaza (formerly Oberoi) said they were happy with the decision to go ahead with that move. "These brands are well accepted today," he said. Airing his views on moves to manage Eden, Riverina and Palm Garden he said this was something in the pipe-line for a long time.

"We needed additional hotels in the South to strengthen our portfolio and the three Confifi hotels brought in a good deal for us," he said. With this the hotel strength in the area would move up to 450 rooms.

The group wanted to sell off Coral Gardens Hikkaduwa which is over 25 years old. "However there were no takers and we will continue to manage it keeping our options open," he said.

He said that they have expansion plans for India and Asia as they are now geared to expand.

"Our properties in the Maldives are doing exceptionally well.

With new hotels being rebuilt and refurbished our total bed strength would reach 500 by the end of the year," he said.

Speaking on the recent agreement by the City Hoteliers to maintain a minimum standard rate it was a good move as Sri Lanka is still selling low.

"The agreement is a win well situation for both the hoteliers as well as the employees as they would get a higher service charge," he said.