LOLC Leisure goes for Rs 2.5 billion refurbishment
LOLC Leisure will undertake an ambitious Rs 2.5 billion refurbishment
programme for its three southern coastal belt hotels -Club Palm Garden,
Riverina and Tropical Villas bringing them to international standards.
“These three hotels will be upgraded to reach international standards
and we are targeting these three hotels to be the best resort properties
in Sri Lanka”, LOLC Group Managing Director and CEO Kapila Jayawardena
told Daily News Business yesterday.
The company is also now at an advanced discussion stage with a
frontline Thai firm of architects to coordinate the full refurbishment
programme which will see the total revamp of the hotel, billed to be
completed in eighteen months.
The existing structure will remain intact but there will be
substantial value additions to the rooms, restaurants and the kitchens
of these three hotels.
The three hotels have been closed down for one and half years from
May 1 to refurbish and modernize the properties. After being upgraded,
the hotels will be managed by a globally reputed hotel management
company and a global hotel chain operator.
Eden Hotel Lanka
“We are in discussions with Hilton, Marriott, Meridien and Six Senses
chains and will announce the operator that we are going to tie up with
shortly,” he said.
Market sources were agog last week of a Rights Issue and a Private
Placement to fund the refurbishment. The entire 7.3 acres land owned by
Confifi’s Club Palm Garden (PALM) alone is now valued at nearly Rs
450,000 per perch, and the existing 140 rooms alone are valued at nearly
Rs 12 million each.
Accordingly, the share is valued at a price of around Rs 450.
However, Jayawardena said that nothing has been decided yet at this
stage on a Right Issue or a Private Placement.
Jayawardena said LOLC will revalue the properties spanning 22 acres
which have not been revalued so far and that will be after the
LOLC in May 2010, bought Confifi Group’s 70 percent with Browns
Investments, in two deals valued at over Rs 900 million, in which LOLC
bought 3.1 million shares or 43.3 percent Confifi Hotel Holdings at Rs
210 per share.
Browns Investments has a 30 percent stake. Confifi Hotel Holdings
further owns a 21.8 percent of Eden Hotel Lanka and 24.06 percent of
Riverina Hotels, both listed firms.
LOLC Leisure which now owns the leisure properties has over 22 acres
with 500 rooms of prime beach front land located on one of the best
stretches of beach in the ‘Golden Mile’.