Financial Times

Pegasus Hotel poised to re-open as a city resort
The Pegasus Reef Hotel, Wattala - closed since the December 2004 Boxing Day tsunami tragedy -- is currently undergoing a remodelling programme aimed at giving the hotel a new look and feel to position it as a city resort to its target clientele, the hotel company said last week.

The hotel plans to re-open early next year. The renovation programme will cost the company Rs. 220 million and will be financed through a rights issue of Rs. 282 million. The Pegasus Reef's parent company, Carson Cumberbatch and Co. Ltd has a 78.44% ownership stake in the Hotel and will be subscribing to its full entitlement in the rights issue. The decision to make the investment was prompted by the Carsons Group's positive forecast for the future prospects of the tourism industry and our view that the hotel can be effectively marketed to both foreign and local clientele at better rates, given a more attractive product, the statement said.

The re-modelling plan for the hotel will be along a new theme which will provide views of the beach and the garden from the main public areas of the hotel. In addition the renovation also covers several other areas - including the kitchen, swimming pool, lobby, laundry, staff facilities and infrastructure such as water purification and sewerage treatment facilities. Rooms are also being upgraded in the process.

It said government authorities are currently engaged in a land reclamation program along the coast line in this area. "This will be very beneficial to the hotel as the property will regain more than 15 acres of beach frontage which it had previously lost due to sea erosion.

The improvement of the road leading to the hotel from the main airport road, currently underway, will also assist in more convenient access," it said. The hotel has more than 15 acres of buildable land adjoining the current property which has further potential to be developed in future in collaboration with joint venture partners. In the long term, the proposed Colombo - Katunayake Expressway will also open up more opportunities for the hotel to be marketed widely. In the meantime, the company strengthened its marketing division since in the light of the tourism industry picking up, this will play a crucial part in promoting the hotel to local and overseas agents which would translate to a improved occupancy rate.

"In the event of the economy picking up one of the very first sectors to be positively impacted, without any further investment, will be the tourism sector," it added.

Apart from tourist traffic, the hotel will also offer an improved service and product to its wide ranging local clientele who patronize it for corporate events, training programmes, conferences as well as private functions and weddings.

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