LOLC Leisure builds Rs 2.2 b hotel complex

Shirajiv Sirimane

Sri Lanka’s biggest hotel complex is now being built by LOLC Leisure Limited a subsidiary of LOLC Group in Beruwela. The complex when completed will offer 400 rooms. The Group is planning to invest over Rs. 2.2 billion for this project.

The group hopes to merge Tropical Villas, Palm Garden and Riverina which were recently acquired by the group for this one of its kind project in Sri Lanka.

LOLC bought 6.2 million ordinary shares representing a 60 percent stake of Tropical Villas for a consideration of Rs 310 million. The controlling stake was owned by parties connected to the Jetwing Group.

Subsequently LOLC paid Rs 165 million to acquire the balance 40 percent stake from Heyleys Group thus becoming the 100% owned subsidiary of LOLC Leisure. Tropical Villas is a beach resort with 50 luxury villas in Beruwala.

Last May, LOLC Group made an aggressive entry to the leisure sector acquiring Palm Garden, Riverina and Eden through a 70 percent joint venture it has with another firm, Browns Investments.

The two deals were valued at over Rs 900 million.

Riverina offers 192 rooms while Palm Garden has 140. LOLC hopes to merge the three hotels and market it as one complex making it the biggest hotel complex in Sri Lanka. The three properties are now closed and refurbishment is in progress.

“The complex is expected to be ready for 2012 winter,” an official from the Group said. The company is also looking for an international hotel chain to manage this property. “This would make marketing easier.” The international partnership not only brings in inputs for the industry but also can give international exposure to Sri Lanka,” the official said.

One of the biggest advantages of this complex is that a guest would have the option of using common facilities of all three hotels thus giving better value. The three hotels would also have 20 acres of prime land with a beach frontage as well. The LOLC official said their other property five star, Eden Hotel and Spa will be managed by LOLC under its group Managing Director, Kapila Jayawardane.

“With Eden, the group will have nearly 550 star class rooms in Beruwela,” he said.

“The LOLC Group always looks for growth opportunities to actively pursue and the leisure sector is currently one of them”, Jayawardena said earlier.

The three properties will be re-branded under one banner.

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