Sri Lanka’s Aitken Spence Hotel Holdings to diversify business through overseas management conracts
Aitken Spence Hotel Holdings of Sri Lanka has reportedly states that the company would pursue management contracts for overseas hotels to diversify the business.
“The Group plans to drive growth of our portfolios through expansion of managed properties both overseas and in Sri Lanka,” Managing Director Parakrama Dissanayake has been quoted as telling shareholders in the firm’s annual report.
“Expanding our geographic footprint will be a priority leveraging the successful deployment of our time-tested business model overseas,” he has said.
Aitken Spence Group Chairman Harry Jayawardena has stated that expanding overseas is crucial for diversifying the business.
Aitken Spence owns one hotel in the Maldives and manages six more, while owning one hotel in Oman and managing three more. It also owns one hotel in Chennai, India, the annual report has stated.
The firm owns eight hotels in Sri Lanka and manages three more, the report has added.
According to Dissanayake, management contracts are being sought in all three overseas locations the firm is currently active in.
“Our plans for Maldives moving forward will focus on expanding our hotel management services portfolio as room inventory increased outpacing demand as there was little effort to increase promotions in line with supply,” he has said.
“Our plans in India are to use Chennai as a base to secure management contracts in India in the resort segments which is our key strength,” Dissanayake has added.
OSL take:
The diversification into foreign markets by a local hospitality group is a clear indication that Sri Lankan leisure and hospitality business is a financially viable endeavour. While looking at forming partnerships with such local enterprises, foreign businesses could explore business/investment opportunities in Sri Lanka’s leisure and hospitality sectors.
| Article Code : | VBS/AT/19062019/Z_7 |