Serendib Hotels acquires boutique villa group
Sri Lanka’s Serendib Hotels, part of Hemas Holdings Group, has secured a controlling stake in a group that owns and operates several boutique villas in the south of Mirissa. The acquisition of the stake is said to total LKR 309 million.
According to a filing in the Colombo Stock Exchange (CSE), Serendib Hotels is reported to have consented to a share sale and purchase agreement and shareholders’ agreement with First Edge Investments Ltd. to acquire 445,668 shares equalling 51.15% of Frontier Capital Lanka (Pvt) Ltd.
Under the name “Lantern Beach Collection” Frontier Capital and its subsidiaries own and operate several boutique villas in Mirissa which is renowned for having some Sri Lanka’s best beach frontage.
After Serendib Hotels’ acquisition as per a hotel management agreement between Serendib Hotels and Frontier Capital, the villas will be managed by Serendib Hotels’ 100% owned subsidiary, Serendib Leisure Management Ltd.
This acquisition is indicative of Sri Lanka moving towards catering for a high-end tourist segment. Such niche investments have the potential to bring in many benefits.
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