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Sanken, JKH in JV for Rs. 3 b worth 25 storey 240 room city biz hotel

Sep 1, 2011 5:50:12 PM - www.ft.lk

Top blue chip John Keells Holdings (JKH) is partnering Sanken Lanka Ltd., in setting up a Rs. 3 billion worth 25 storey 240 room three-star city business hotel on a 80 perch site at Green Path, Colombo 3.
JKH will take a minority 20% stake whilst Sanken will hold controlling 51% stake in the joint venture Sancity Ltd.

Work in connection with the construction of the country’s first of its kind fully fledged business hotel has begun already at Green Path, Colombo 3. Pic by Upul Abayasekara

To manage the hotel JKH will come up with a new brand its third after rolling out the premier Cinnamon and resort-centric Chayaa. The commissioning of the city business hotel, piling work of which has already begun, marks the first post-war development in the leisure sector in Colombo. Via Chaaya Beru, JKH also kicked off the first post-war resort construction.
Sanken Lanka will be the main contractor for the project which will be on a Design and Build basis with Design Team 3 of Singapore being the project Architects.  To be ready in 33 months, the facility, designed as chic boutique business hotel, would offer state-of-the-art modern in room guest facilities, including a 160 pax restaurant on the 24th Floor with a roof top swimming pool, bar, open air lounge and gym facilities offering a panoramic view of the city.
JKH Deputy Chairman Ajit Gunewardene said: “Based on our long term strategy, we believe that Colombo requires an efficient and modern business hotel offering ultra-comfort with efficient services at a competitive price for the business traveller. This project would be just the start in taking our strategy forward while adding to and complementing our brand portfolio. Our goal in the medium term would be to develop a capacity of around 1,000 rooms in this segment”.
The City of Colombo currently has a room capacity of approximately 500 – 600 rooms in the three star and lower categories which are totally inadequate given the expected surge in demand in business related travel in the next two to three years. The opportunity to attract a larger part of this segment specially the incentive traffic and conference space in the sub-continent is immense.
The business hotel will further expand the city star class room strength of JKH Group which currently comprises 501 at Cinnamon Grand and 345 at Cinnamon Lakeside.

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