Spain’s Barcelo invests US$30mn in Maldivian hotels of Sri Lanka’s Browns Group

Browns Group’s Bodufaru Beach Resorts Pvt Ltd has a 50-year lease on Bodufarufinolhu Island in the Maldives’ Raa Atoll. Source: Google Maps CNES/Airbus, Maxar Technologies imagery.

ECONOMYNEXT- Spain’s Barcelo Hotels Mediterraneo S. L., a subsidiary of the Barcelo Group, will invest 30 million US dollars in Maldivian Bodufaru Beach Resorts Pvt Ltd, owned by Sri Lanka’s Browns Group, a stock market disclosure said.

Barcelo Group, which operates 251 hotels in 22 countries, will own 33.33 percent of shares in Bodufaru Beach Resorts following the investment.

The Spanish firm signed a share subscription and shareholders’ agreement with the Browns Group on November 7.

Browns currently owns 99.96 percent of the shares in Bodufaru Beach Resorts, through four group companies.

Bodufaru Beach Resorts owns 50-year leasehold rights to three properties; Bodufarufinolhu Island in the Raa Atoll, Bodufinolhu in South Ari Atoll and a plot of lagoons in the Male Atoll.

Coast conservation and reclamation work in the Male Atoll lagoons have recently completed, and will be the first resort to be constructed, Browns Group Director Kapila Jayawardana told EconomyNext.

The Bodufarufinolhu Island reclamation work is around 35 percent complete, while physical work is yet to start at the Bodufinolhu Island, he said.

Jayawardana said the three resorts will total 470 rooms.

“The Maldives is a highly sought after environment for leisure in the region and that’s why we are making significant investments there,” he said.