Sri Lanka's Cinnamon to lease new Maldives resort
May 25, 2019 07:43 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's Cinnamon Resorts, a unit of John Keells Holdings Plc is in talks to wrap up a 10 - year renewable lease for a new resort in the Maldives, the firm said.
…[T]he Group has entered in to a Memorandum of Understanding (MoU) and is currently in the process of finalising
a sublease agreement for a new property under the "Cinnamon" umbrella," Chairman Krishan Balendra told shareholders in the annual report.
"In line with the Group’s asset light strategy for the expansion of rooms under management, the property will be subleased for a period of 10 years with the option for further extensions."
A water bungalow property 'Ellaidhoo Maldives by Cinnamon" was closed during the last financial year after closing it between May and October to build a new hotel. It will be positioned as premium luxury beach resort at a higher price.
Average room rates at "Cinnamon Dhonveli Maldives", after refurbishment in 2017/18 are above expectation, Balendra said.
JKH has 304 rooms in the Maldives.
Average room rates at Maldives resorts had climbed to 320 US dollars in the year to March 2019, from 309 dollars a year ago.
The average rate of Sri Lankan resorts were 90 US dollars and it was 128 for city hotels without Cinnamon Red. The group runs 2.087 roooms in Sri Lanka. (Colombo/May25/2019)