Fairway Holding to invest Rs 4 bn in housing, leisure and aviation sectors | Daily News

Fairway Holding to invest Rs 4 bn in housing, leisure and aviation sectors

Fairway Holding will be investing a further Rs. 4 billion to build apartments, hotels and to develop the domestic aviation sector, Chairman Managing Director of the Group, Hemaka De Alwis told the Daily News Business.

He added that the company has already invested Rs. 1.8 billion for three projects namely Fairway Hotel Colombo Fort (which is now in operation), Fairway Galle Apartments and Fairway Hotel in Galle (20 apartment style rooms). The projects in Galle are scheduled to be opened at the end of this year.

“We also have plans to build a 120-roomed hotel in Unawatuna for which we have obtained the land.”

He said that he is upbeat on the island’s current status of the real estate and tourism sectors. The trend will continue with the prospects of the Colombo Port City project. Referring to the present market trends for apartments, he said, “I see better prospects in the mid-market for apartments as there may be an oversupply of high-end apartments.”

“In contrast, I see an increasing demand from the middle class for apartments below the price of ‘Rs. 21 million’. “ Fairway has already invested in apartments in Galle (Aqua Vista which comprises a high-rise luxury tower with 20 floors comprising 120 units). Their latest project is in Kurunegala with an investment of Rs. 400 million. “Soon we will stamp our ‘Fairway apartment footsteps’ in other regions as well.”

De Alwis commenting on the leisure sector said that they still see a demand for the US$ 60 a room bed and breakfast category especially in Colombo. “Our first city hotel Fairway Fort is very successful as we see more yields in this segment.”

“We will invest over Rs. 1. 1 billion to build a similar hotel in Pettah near the City Traffic police building in Fort. This would offer 400 rooms on 14 floors and it would be branded as ‘Minerva’.”

“While offering luxury, we are also concerned about the budget traveler. Hence we are also building a ‘tourist hostel’ in Fort with over 100 beds. We hope to sell a bed at the rate of US$ 30 per night,” De Alwis said. He is of the view that Colombo needs more entertainment options. “We have also acquired some entrainment establishments in Colombo and are in the process of turning them around.”

The group is also looking at the opportunities to break into the aviation industry. “We see a demand for a domestic airline to service the East and the cultural triangle. We want to get a 30-seater aircraft from the US on a wet lease and we will also include a stop over to Mattala airport to cater to Deep South tourists and entrepreneurs. Our plans for the aviation sector also include a flying school.”

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