Browns Hotel goes for major overhaul

Browns Beach Hotels PLC will cease operations of the Browns Beach Hotel on March 31, 2011. It plans to commence construction of a 200 roomed star class resort immediately thereafter, a report filed in the Colombo Stock Exchange (CSE) said.

The Board of Browns Beach Hotel PLC resolved to issue Rights of seven ordinary shares for two held at a price of Rs 65 per share to facilitate the funding of the construction of the new hotel.

The Board also resolved a post rights share sub division of three shares for every one share held. Through the rights issue the company expects to raise around Rs 2.18 billion for the construction of the new hotel the CSE filing said.