John Keells to start Rs3.7bn hotel in Sri Lanka’s Nuwara Eliya
ECONOMYNEXT – Sri Lanka’s John Keells group is expecting to start construction of a 3.7 billion rupee hotel in Nuwara Eliya in the island’s central hills early next year.
The firm is now awaiting local authority approval for the 135 room hotel, Chairman Susantha Ratnayake told shareholders in the annual report.
The hotel which is estimated to cost 3.718 billion rupees will begin construction in the first half of next year.
"Cinnamon Hotels and Resorts will continue to focus on brand building initiatives through its social media strategy to secure a strong online brand presence that would drive direct online sales, whilst reducing distribution costs," Ratnayake said.
"In the recent years, the industry has witnessed a significant growth in the informal accommodation sector while an increase in star category rooms is also anticipated during the year.
"The company will tailor its strategies to combat competitor pressure arising as a result of the increased room inventory."
Sri Lanka’s large hotels have been feeling the pinch from small start-ups that do not splurge on capital expenditure but caters to adventurous travellers who book through booking engines and enjoy local culture, foods and interacts with the broader economy.