Auro invests Rs 1.3 b in leisure sector

Favourite Group diversifies:

Shirajiv Sirimane

Auro Holdings the newest player to enter the hospitality field of Sri Lanka, has invested Rs. 1.3 billion to have three hotels in Colombo, Tangalle (Ranna) and at Kalpitiya. Both the Ranna and Colombo properties will open in December.

Auro Holdings Chairman and Managing Director Arun K. Thapar said their focus is on developing the tourism industry and the hospitality industry in Sri Lanka with a keen focus on the south.

The RANNA212, Tangalle, is a four star resort with a difference in the deep south coast of Sri Lanka and Colombo Courtyard, a Boutique Business Hotel with comfort and class in the heart of the city of Colombo.

Thapar who is also the Chairman of Favourite Garments, said in addition to these two properties they have also bought a land in Kalpitiya.

“We are looking at building another boutique hotel in this property next year,” he said.

The project of Sinahawa in Tangalle which began as a joint venture between a local investor and a group of Italian investors was acquired by Auro Holdings (Pvt) Ltd for 3.5 million US dollars. Total investment for refurbishment and upgrading of this project stands at 10 million US dollars. He said Hambantota with the international airport and harbour, Hambantota Convention Centre, the Suriyawewa International stadium and the bid to host the Commonwealth Games in 2018 will see a major development and a hotel of this nature will fill a long void to the area.

“This would be the biggest four star property in the area and will be marketed for over US $ 220,” he said.

The new brand Ranna212 will be opened in two segments initially with 54 rooms.

“The second phase adding 70 rooms will be ready by July 2012.”

He also disclosed that marketing for the property has already commenced and they have already 30 rooms booking for 10 days from a travel group from Russia.

Commenting on their second project, Colombo Courtyard on Duplication Road, Colombo he said that it will consist of 32 suites and a total of 4 million US dollars has been invested into the project.

“We will be also opening out our dining to the public as well,” he said.

Colombo Courtyard has been created with a creative eye for detail.

The Hotel will serve as a ideal location to travellers as it is in close proximity to the convention centres, stadiums and the business capital.

Tharpar who also owns over 500 beds in the Maldives which is sometimes sold at over US $ 600 said this was the appropriate time to invest in the leisure sector as Sri Lanka’s tourism industry is now moving towards the high end. He said that 50 percent of the investment came from borrowings from Banks.

The General Manager of Hotel Ranna will be Reyhan Morris while Colombo Courtyard will be headed by Pulinda Fernando as General Manager.

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