CHC to invest Rs 2 bn to refurbish properties

Vishmi WIJERATNE

Galle Face Hotel Management Co. Ltd, (GFHM), will invest over Rs. Two billion next year to refurbish their properties in both Colombo and Kandy.

This includes the up grading of their flagship property, Galle Face Hotel’s function areas. This would be with an investment of around US $ 1.8 million dollars. “The old wing of the Galle Face Hotel which comprises 85 rooms too is planned to be refurbished next year.

Chandra Mohotti Picture by Sumanachandra Ariyawansa

“However, we will not change the design or the architecture of the building as instructed by Group Chairman, Sanjeev Gardiner, who believes in preserving heritage,” Senior Vice President, Galle Face Hotels, Chandra Mohotti said.

Speaking to the ‘Daily News Business,’ he also said that since Galle Face Hotel caters to a niche market, it has around 35% repeaters.

Asked to comment on a would be ‘rebranding,’ he answered in the negative. “We don’t need a new branding since our name is well known throughout the world.”

Mohotti said that they had already completed a major refurbishment drive to the former Lihiniya Surf Hotel which will be reopened within two weeks time under the name ‘Surf Hotel’. “The management had invested Rs. One Billion towards this venture”.

“With the opening of the Surf in Bentota and the reopening of Bay Inn Weligama last month, we have strengthened our presence in the South coast, thus catering to the vastly increasing tourist population,” he said.

The GFHM also plans to refurbish their two properties in Kandy’s Queens and Sussie next year. The investment planned for this would be around US $ 17 million.

Speaking further on their future plans, he said that they were currently on the look out for opportunities overseas as well, which may be either self owned or joint ventures. “However, there has been many opportunities in Sri Lanka itself,” he said.

Mohotti believes that with the opening of internationally recognized hotels, such as Shangri La, Hyatt, Movenpick and many others, the competition has increased. However, he said that competition was positive and a plus point to the hotel industry. “The country, having more recognized hotels, would increase the confidence of travellers to visit Sri Lanka, thus the income would significantly increase,” he said.

Asked to comment on the minimum room rate he that it was introduced during bad times and it had made a positive impact on the industry. “However, it was unfair for some hotels to charge a minimum rate without upgrading.”

Mhotti, further said that though price increases were a must, it should in parallel to the increase of quality. He also said that Sri Lanka needed more middle class hotels to provide the travellers more choice in selection.

The group has also invested in building a120 roomed five star hotel, Olso in Kandy adjoining the Suizze. This facility would would be launched in 2014 and the joint venture would be for Rs. 360 million.”