Sri Lanka’s Aitken Spence Hotels to sell lease rights to a Maldivian Island
Sri Lanka’s Aitken Spence Hotel Holdings Plc (AHUN) has reportedly decided to sell the lease rights to a Maldivian Island valued at Rs. 953 million.
Accordingly, AHUN, in its interim financials has stated that its subsidiary Ace Resorts Pvt Ltd will be disposing the lease of the Raafushi Island in the Noonu Atoll.
The balance sheet of AHUN showed the asset valued at Rs. 953 million, local media reports stated.
The Company in its annual report has stated that the 45.25 acres island was leased by Ace Resorts from the Maldivian government for Rs. 668.5 million (US$ 5 million) in 2015 and was the sixth island for which AHUN had acquired lease rights.
AHUN had then had plans to finish construction of a resort in the island within two to three years.
Company’s 2019 annual report had noted according to media reports that the island “earmarked for the construction and development of a resort.”
AHUN has stated that it will look to manage properties in all of its operating countries (Sri Lanka, Maldives, Oman and India) instead of building and owning its own hotels.
OSL take:
Sri Lanka’s leisure and hospitality sectors have shown continuous growth and in some instances expansion into foreign countries as well. There are many local leisure and hospitality companies engaged in the tourism industry in the Maldives. It is in such a backdrop that Aitken Spence Hotels has decided to sell its lease on a hotel on an island in the Maldives. The company also operates in Oman and India apart from Sri Lanka and the Maldives. Foreign businesses/investors while exploring business/investment opportunities in Sri Lanka’s tourism sector, could also look at forming partnerships/joint ventures with local companies to expand into other countries in the region.
| Article Code : | VBS/AT/09082019/Z_2 |