JKH may lose Male resort

By Duruthu Edirimuni Chandrasekera

JKH’s hotel arm, Keells Hotels Limited (KHL) may lose one of its resorts in Maldives this March, according to informed sources.
“Velidhu Island, which is a resort of 100 rooms has been sub-leased by KHL for a period of 11 years and 147 days, which is from November 1, 1996.

This runs out in March and it will not be renewed,” an informed source told The Sunday Times FT.

KHL however, will be scouting for more island resorts in the popular holding destination this year, he added. KHL runs five hotels in Maldives at present and the first six months of 2007 showed a net loss in profits in the hotel sector of JKH. He noted that out of this figure Maldives showed a loss of Rs.227 million, whereas the Sri Lanka property loss was at Rs.175 million. A JKH source said this was mainly due to refurbishment and repositioning costs in some Maldive resorts.

“Ellaidhoo resort was closed for refurbishing during the second and third quarters while Dhonveli Resort was also partly closed during the same period for refurbishment,” he said He added that KHL’s latest resort, Alidhu opened last June and there were same pre-opening costs that dented the profits.

“Presently all five resorts are fully operational and January, February and March is the peak season,” this source said.