Financial Times

New Jetwing hotels in Trinco, Koggala, Sigiriya
By Duruthu Edirimuni
Despite the prevailing political uncertainty that has put investments of many companies on the backburner, the Jetwing group is going ahead with an ambitious hotel expansion and repositioning plan.

Lalin de Mel, Director, Jetwing Hotels told The Sunday Times FT that the company has done the groundwork on a massive development plan and is planning on investing over Rs. 300 million on two upmarket hotel projects in Trincomalee and Sigiriya. It also plans a hotel project in Koggala, approved by the Board of Investment (BOI).

De Mel said Jetwing is building 26 luxury beach tents - a new concept in Sri Lanka - in a Rs. 150 million venture on 25 acres of land in Trincomalee which is due to open by November. The villas are designed by Channa Daswatta, who has worked with the renowned architect, Geoffrey Bawa.

Jetwing has had this beach property for the last 25 years. These villas were half built in 1983 but the project was abandoned after the ethnic riots. "In Sigiriya we have already laid the foundation to build 25 eco lodges on 24 acres of land and it will be called the Sigiriya Wetland Lodge and Spa," De Mel said.

This BOI venture is to be completed in April-May 2005 and is worth Rs.150-175 million. "We are creating our own lake and the lodges will be built on stilts erected around the lake," he explained. The exterior of these lodges will be thatched for an 'eco' effect, whereas the interior will be on a luxury note. Sunela Jayawardena, an environmental architect, is designing this project.

De Mel said the four-star Hunas Falls hotel is currently going through a Rs. 20 million revamp. Twenty of the 31 rooms will be converted to main suites. Currently, the hotel has two suites. The remaining nine rooms will be refurbished. The last refurbishment of the hotel, which has a land area of 100 acres, was done in 1993.

"With the renovation, Hunas Falls will be a boutique type of hotel belonging to the small luxury hotels category," De Mel said. Jetwing's three star Royal Oceanic Hotel in Negombo is being renovated and repositioned as a five star hotel with an investment of Rs 150 million. The hotel, which has a land area of 2.5 acres will be re-launched as 'The Beach' in October this year.

Jetwing has embarked on a massive investment on human resources and have hired four training managers. "It is ultimately in our business to sell service and we believe the company is only as good as its staff," de Mel said. Commenting on the industry, he said the first quarter of FY 2004 has not performed as well as its corresponding period last year. "I believe in May there might be a nine to twelve percent drop in tourist arrivals and it is a bit concerning," he said.

On the other hand most hotels that rely heavily on charter operations are closed for renovation during this European summer season after having had a good season last year. "Charter operators book hotels back to back and they have reduced their flight seat capacity to Sri Lanka because most hotels are being renovated," De Mel said.

He was confident that the peace process will continue and political stability will return. "We believe that peace will prevail and there will be no war."

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