SLTDA invites investors for development of 7 rest houses on 30-year lease

Tuesday, 11 June 2024 01:36 - - {{hitsCtrl.values.hits}}

Rest houses located in Baththuluoya, Ragala, Nalanda, Anamaduwa, Weeraketiya, Galgamuwa, Hiripitiya
Aims to boost hospitality infrastructure to accommodate increasing number of tourists
Initial lease period set for 10 years, with possible extension of 20 years based on satisfactory performance
Minimum annual lease rent set at 4% of Govt. evaluation of property

Sri Lanka Tourism Development Authority (SLTDA) has issued a call for investors to submit conceptual proposals for the development of seven rest houses on a 30-year lease basis. Rest houses located in Baththuluoya, Ragala, Nalanda, Anamaduwa, Weeraketiya, Galgamuwa and Hiripitiya aim to boost the country’s hospitality infrastructure and accommodate the growing influx of tourists, ensuring a sustainable and profitable tourism sector for Sri Lanka.

Interested investors are required to maintain these rest houses according to the standards set by SLTDA.

Proposals must include plans featuring essential components such as a reception lobby, bedrooms with attached bathrooms, a restaurant, kitchen, toilets, storage facilities and staff accommodations.

Although the lease agreement spans 30 years, the initial lease period is set for 10 years. “An extension for an additional 20 years will be considered based on satisfactory operations during the first decade,” a top official said.

He added that the minimum annual lease rent is set at 4% of the Government valuation of the property, with higher marks awarded to applicants proposing the highest annual or monthly lease rents.

“Final selection criteria will include the creativity of the proposal, financial capacity of the applicant, amount of investment, proposed lease rent, promotional and marketing capabilities and experience in the travel and tourism industry,” he added.

The initiative follows a recent announcement by SLTDA Chairman Priantha Fernando, who said that Sri Lanka could face a shortage of hotel rooms particularly for high-spending tourists by the end of next year.

He noted that high-end hotels, which charge over $ 250-300 per night, are experiencing very high occupancy rates at these elevated prices.