JKH to tailor hotel investments to suit Sri Lanka

John Keells Hotels (JKH) is retaining its trust in the resilience in the country and has decided to tailor its investment to suit Sri Lanka.

“Taking cognizance of the current industry climate and growth prospects for tourism in Sri Lanka in the short term, we will appropriately tailor our investment in Sri Lanka. Nevertheless we retain our trust in the resilience of the tourism industry in Sri Lanka lending our support to the various initiatives undertaken to revive the industry,” Susantha Ratnayake, Chairman JKH has said in his annual statement for 2006-07.

He has further said that the company’s unabated confidence in the growth potential of the hotel industry in Sri Lanka, Maldives and the region is buoyed by the sustained growth in world tourism. “Having set in motion the refurbishment and development of our new acquisition in the Maldives, we will continue to consolidate our presence in keeping with our brand strategy,” he has said.

Ratnayake has said that the opening of the luxurious 100 roomed resort hotel at Alidhoo Island, now scheduled to commence operations in July 2007 suffered set backs due to the inclement weather. He has called it ‘the regional trail blazer for the Cinnamon brand’.

He has said that the company profitability fell to Rs.22 million from the Rs.185 million achieved in the previous year due to the increase in finance costs related to the acquisition of the new resorts in the Maldives.