Hotels Corp. enters Maldives with $ 28 m 50-room resort move

Tuesday, 17 November 2015 01:06 - - {{hitsCtrl.values.hits}}

Ceylon Hotels Corporation (CHC) controlled by Sanjeev Gardiner Group, is entering the Maldives with a planned 50-room resort entailing an investment of $ 28 million (nearly Rs. 4 billion).

CHC’s fully owned subsidiary United Hotels Company Ltd., (UHCL) which has acquired a 100% stake in Ceylon Hotels Maldives Ltd., (CHML) for Rs. 0.7 million. CHML has obtained Exchange Control approval for an equity investment of $ 11.08 million to invest in the construction of the Maldives resort.

The balance funding amounting to $ 16.62 million will be met through bank borrowing.

CHC Board has approved a private placement of Rs. 500 million in to UHCL by Ceylon Hotel Investment Ltd., (CHI), a related party based on the independent valuation done by NDB Investment Bank. CHC will be holding 78.4% of UHCL after the private placement.

Ceylon Hotel Holdings Ltd., is the parent company of CHC and it owns the 50% of CHI as well.

Tourist arrivals to the Maldives in the first nine months have increased by 2% to 919,277.