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Friday, 22 August 2014 00:01 - - {{hitsCtrl.values.hits}}
By Shabiya Ali Ahlam
Tourism in the south will be further uplifted with a leading leisure management company announcing plans of constructing the largest luxury resort in Galle with an investment of Rs. 1.8 billion.
Keen on continuing to be a part of the tourism growth story, Asia Leisure, owned by Asia Capital PLC, on Wednesday said it would put up a 100-room luxury hotel on two acres of fine beachfront real estate in Galle, which the company purchased earlier this year.
Construction of the project, which will be funded equally by Asia Leisure and its two new investors from Japan, will commence towards the end of this year and is expected to reach completion by 2016. It is expected to open in time to target the tourist flow during the Christmas season.
Of the Rs. 1.8 million, Rs. 1.2 billion has been allocated for the construction whereas the remaining Rs. 0.6 billion will be for the interior design and finishing.
Asia Leisure currently owns four globally-acclaimed boutique hotels in the south, Shinagawa Beach, Tamarind Hill, The River House, and Taprobana (opening in three weeks), but it is the upcoming property that has bagged the largest investment to date, according to Asia Capital CEO Stefan Abeyesinhe.
“As Sri Lanka surges towards becoming a tourism hub, the country has commanded keen interest from global tourism players with its room inventory expanding through large volumes of Foreign Direct Investment (FDI). Given the bullish prospects for tourism, our growing expertise in the leisure sector is of immense strength to the group’s future. It is with a sense of optimism and accomplishment that we unveil our fifth and largest property,” Abeyesinhe told journalists at a briefing.
He shared that initial plans was to build a hotel of 60 rooms in the said property, but given the prime location of the land investors were of the view it is best to increase the capacity to 100 rooms. Asia Leisure at present has a 70-room inventory and the new property will more than double its portfolio to 170 keys.
Pointing out reasons for reasons in investing in Sri Lanka, City Creations Holdings Chairman Jin Sashida said it is greatly due to the local economy having shown healthy growth in the recent years. “We are fully confident that under this Government this trend will only improve.”
Emphasising that Sri Lanka has a promising future, Sashida added that with Japan looking at Sri Lanka as an investment-friendly zone, the county will see more investments from that country in the near future.
“Sri Lanka is attractive for us because we find it tax friendly. This element alone is encouraging for is to come to Sri Lanka. We are confident we will be able to reap the benefits of our investments as with the strategic location Sri Lanka enjoys, it is poised to be a tourism hub in the region,” expressed Sashida.
Asia Leisure officials shared the company is also in discussions with two international hotel operators for the management of the property but noted it may also opt to undertake the management themselves considering the experience and knowledge gained from managing its other four properties. Given that Asia Leisure already engages in hotel management, the company has implemented a strategic plan to manage other properties.
Asia Leisure has already negotiated for three more hotels in which Asia Leisure would either manage the operations of or have minority financial interest depending on the hotel’s requirements.
The new Galle resort will consist of 100 sea view suites equipped with luxury amenities including the option of double bath or plunge pool that will be built under the concept ‘Without Boundaries’. The hotel will also consist of a large swimming pool overlooking the ocean, along with a pool bar, water lounge and a spa.
