ECONOMYNEXT – Sri Lanka’s John Keells Holdings is continuing talks with international gaming firms to operate its casino in the Cinnamon Life integrated resort, shareholders were told in the annual report.
“A lot of groundwork has been carried out by the parties, including detailed site visits, evaluation of the business case and operating model, fit-out requirements, designs and timelines,” JKH said.
“The discussions are progressing well, where various commercial structures and arrangements are being negotiated.”
“The envisaged structure of the gaming operations is that ‘Cinnamon Life Integrated Resort’ will lease space to the gaming entity, while a third party will invest in the gaming fit-out.”
The overall fitout of the gaming space will take a period of approximately 12-15 months once the commercial aspects and agreements are finalized, JKH said.
“In the event ‘Cinnamon Life Integrated Resort’ is unable to obtain favourable terms to our satisfaction, as an alternative, we will work on a model where the gaming entity sources the requisite international gaming expertise to operate at ‘Cinnamon Life Integrated Resort’, similar to how some other successful regional integrated resorts have established operations.”
The hotel retail and entertainment areas of Cinnamon Life integrated resort is in the final stages of construction. About 500 of the 800 room hotels have been completed.
“Discussions with potential tenants of the retail mall continued during the year, to ensure unique attractions and offerings, although arrangements were not finalised pending clarity on the gaming operator and related strategy,” the firm said.
“Various alternatives including experiential offerings focused on food and beverages, lifestyle and entertainment, which would complement the hotel and gaming operations, are being considered for the retail space.”