Dubai investors are said to be scouting Sri Lanka for hotel properties in a bid to beat the sluggishness in business opportunities in the Gulf, according to some market analysts. “Compared to other regions hotel properties can be good investments here as they are being sold at cheaper prices,” an analyst said.
Another analyst said this sector has been negatively affected by the global economic downturn and this trend is likely to continue in short to medium term. “This is not however, the first time that tourism has suffered a setback and if handled correctly, it looks set to bounce back stronger than before with the dawn of sustainable peace in the country,” he added.
He said that these investors are looking at both city properties and also resorts.
Nahil Wijesuriya, Chairman Hotel Services Ltd told The Sunday Times FT He that about three months ago, some investors from Dubai visited Continental Hotel (Continental). "As investments there are slow (due to the current financial meltdown) they are scouting opportunities in countries like Sri Lanka,” he said. He said that since then, some Indian and US based investors also visited Continental. “They also saw other properties in the country as well, "he added.
He said that Hotel Services Ltd, owners of Continental did a revaluation of the property recently in a bid to comply with the new Companies' Act. "The new Act stipulates that land and assets in a company need revaluing every five years. We were well beyond this time since the last revaluation was done.”
The property and assets have been revalued at Rs 5.1 billion against Rs 538 million as of 31st December 2008. When asked about the stock market and hotel industry speculation that he is looking to sell Continental, Mr. Wijesuriya said, "I am always looking for a buyer. I will always be looking for the opportunity to sell.” |
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