LOLC to increase investment in new hotels after assessing properties
Mr. Ishara Nanayakkara, BI Chairman
Betting long-term on the revival of the tourism industry, the country’s fastest growing conglomerate, LOLC Group’s strategic investment arm, Browns Investments PLC’s (BI) subsidiary Eden Hotel Lanka PLC on Tuesday bought a controlling stake of 55.65 per cent in Serendib Hotels PLC from Hemas Holdings PLC.
BI officials told the Business Times that LOLC is focused on expanding in the hotel sector in Sri Lanka and the Maldives. “We expect a revival in the tourism sector post COVID-19. This purchase was targeted at long-term revival of the tourism sector in the country,” one official said.
Analysts said at Rs. 791.7 million, the hotels – Club Hotel Dolphin, Hotel Sigirya, Avani Bentota Resort and Lantern Beach Collection, Mirissa – were sold cheap. “BI bought the hotels at a good discount,” an analyst added noting that the best time to buy is when the pricing is low.
BIL now counts 10 hotels in Sri Lanka including The Eden Resort & Spa in Beruwala, The Paradise Resort & Spa in Dambulla, The Calm Resort & Spa in Passikudha and Dickwella Resort & Spa, Sheraton Kosgoda Turtle Beach Resort managed by the Marriott Group and five in the Maldives – Nasandhura Palace Hotel in the city of Malé and Bodufinolhu in the Ari Atol, Bodufinolhu and the lease rights to three islands reclaimed in North Malé.
According to the official, whatever required refurbishment to the freshly acquired hotels will be made after carefully evaluating the properties.
Over the years, BI has developed its diverse investment portfolio, expanding its operations into construction and related businesses, plantations and other strategic investments. “The construction sector businesses are showing great potential in the medium to long term with Ajax Engineers- the aluminum fabricating arm, Gurind Accor- the renowned tempered glass supplier, General Accessories- the leading powder coating services provider and Creations Wooden Fabricators- suppliers of interior and furniture solutions for commercial purposes, complementing the overall business strategy of the construction sector with a wide range of construction related businesses,” a BI media release said noting that BI is also the single largest shareholder of the Sierra Group.
The plantation investment of BI, Maturata Plantations, a prominent manufacturer of premium branded tea and cinnamon and owns the largest cinnamon plantation in the country and the recent investments made into this sector is now reaching the stage of harvesting and the timely acquisition of Tropical Island Commodities, a cinnamon exporting business with an established sales channel in the global cinnamon market will certainly enrich the plantation business, it added.