Sri Lanka’s Cinnamon Resorts in talks to take on lease a new resort in the Maldives
Cinnamon Resorts of Sri Lanka, which is a unit of John Keells Holdings Plc, is reportedly in talks to wrap up a 10 – year renewable lease for a new resort in the Maldives.
The Group has reportedly entered in to a Memorandum of Understanding (MoU) and is currently in the process of finalizing a sublease agreement for a new property under the “Cinnamon” umbrella, Chairman Krishan Balendra has told shareholders in the annual report.
“In line with the Group’s asset light strategy for the expansion of rooms under management, the property will be subleased for a period of 10 years with the option for further extensions.”
A water bungalow property “Ellaidhoo Maldives by Cinnamon” was closed during the last financial year after closing it between May and October to build a new hotel. It will be positioned as premium luxury beach resort at a higher price.
Average room rates at “Cinnamon Dhonveli Maldives”, after refurbishment in 2017/18 are above expectation, Balendra has been quoted as saying.
JKH has 304 rooms in the Maldives.
OSL take:
The move by Sri Lanka’s Cinnamon Resorts to take over a new property for leisure in the Maldives indicates the expansion of Sri Lankan companies engaged in the hospitality trade. Therefore foreign businesses could explore business opportunities in the hospitality trade by forming partnerships with local companies.
| Article Code : | VBS/AT/28052019/Z_2 |