East West to inject US$ 80 m into 8 hotels
Ravi LADDUWAHETTY
Diversified blue chip East West, through a newly formed subsidiary-
East West Hotel Developers (Pvt) Ltd will inject over US$ 80 million
into eight star class properties, leveraging the dream run enjoyed by
the leisure sector in a backdrop of durable peace.
The seven five star properties will be in Weligama Bay, Colombo,
Kandy, Nuwara Eliya, the Cultural Triangle, Kandy, Hambantota and the
East coast, top market sources told Daily News Business yesterday.
They also said that negotiations were also under way between East
West and global leisure industry chains such as Hilton, Marriott,
Intercontinental and Starwood along with some smaller chains which would
also manage properties while leveraging their synergies in the industry.
The first of these hotels will be inside the Weligama Bay billed to
be built and operated at a cost of US$ 24 million which be a 150 roomed
property which will have a breathtaking and idyllic view of the sea.
The company has lodged the applications with the line agencies such
as Sri Lanka Tourism and the Urban Development Authority and are
awaiting approvals for the construction to begin in December.
The rest of the leisure projects will also be developed
simultaneously and the East West Group will also shortly purchase
properties for the other projects which will be countrywide.
The Group also is keen to have a Colombo City Hotel and strident in
that light was Group Chairman Nahil Wijesuriya and related parties once
holding the controlling interests of Hotel Services Ltd, the holding
company of the Ceylon Continental, prior to its divestiture to Hayleys.
Market sources also said the majority of the equity will be coming
from East West properties while there will also be a private placement.
The holding company of the East West Group- the Singapore based Asia
2000 owned by business tycoon Nahil Wijesuriya, who also owns East West,
is expected to make a big impact in this regard.
The company also has Rs 1 billion raised through a Rights Issue
recently.
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