Financial Times

Jetwing's Rs. 675 mln investment plan as tourism takes off
By Duruthu Edirimuni
The Jetwing Hotels group has invested Rs. 675 million on a repositioning and expansion project while embarking on a culture revamp in the organization just as the tourist industry enjoys one of its best seasons in Sri Lanka.

"We are repositioning four of our hotels as small luxury hotels and building two new up market hotels in Sigiriya and Nilaveli," said Hiran Cooray, Managing Director, Jetwing Hotels.

Projects in Koggala, Tangalle and Balapitya areas are also earmarked. He said that with this massive investment project, the company is targeting Rs. 1.5 billion in revenues this year against Rs. 1.1 billion in 2003.

Royal Oceanic Hotel in Negombo, Hunas Falls in Kandy, Yala Safari Game Lodge and St. Andrews Hotel in Nuwara Eliya are being renovated and repositioned. "The 91-room Royal Oceanic, which is currently a three and a half star hotel will be reopened in October as a five star hotel and named 'The Beach'," he said. The investment for the renovation is Rs. 150 million. A 150-ft long pool and a spa are being added to the hotel, which would have 75 rooms. "We have come down on the amount of rooms from 91 to 75, made them larger and provided more space in the public areas," Cooray said.

He said Jetwing decided to invest in Royal Oceanic as Negombo was just 20 minutes away from the airport and known as the gateway to Sri Lanka. With no five star hotel in Negombo, Jetwing has used the opportunity to upgrade Royal Oceanic.

The 63-room Yala Safari Game Lodge has been revamped with a Rs. 50 million investment. "The biggest issue at this hotel was pure water," he said adding that the company addressed this by spending Rs. 15 million on a desalination plant, where the seawater was purified.

The company has spent Rs. 30 million on staff quarters and the kitchen of St. Andrews Hotel and has spent Rs. 125 million on the hotel property. "The 52 rooms are completely redone and the hotel will be positioned as small luxury category hotels," Cooray said.

Two other new projects the company has embarked on are The Beach Camp at Trincomalee and the Sigiriya Wetland Lodge and Spa. The Beach Camp is built on a 23-acre patch of jungle on a 750-foot section of the Nilaweli Beach overlooking the Pigeon Island. There will be 25 luxury canvass tents mounted on a cement platform.

The investment for the venture is Rs. 150 million, targeting luxury high end, eco friendly and marine enthusiastic travelers and is scheduled to open at the end of September. "The Sigiriya Wetland Lodge and Spa will have 25 eco lodges, in 24 acres of land and will have a good view on both the Sigiriya and Pidurangala rocks," Cooray said.

This BOI venture is to be completed in April- May 2005 and is worth Rs.150 million. "We are creating our own lake by collecting rainwater and the lodges will be built on stilts erected around the lake," he explained. The company, which manages The Blue Water Hotel at Wadduwa, has built a spa at the hotel to add value with an investment of Rs. 25 million.

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