The LOLC Group's first foray into the hotel sector through Confifi Group hotels in the past two weeks will be seen as bigger and better things to come for LOLC in this sector, according to informed sources.
“LOLC is scouting for land in the East Coast, Kalpitiya and Jaffna and are also in the process of acquiring land in some of these areas in a bid to make large strides into this sector,” one source told the Business Times.
By Thursday, the Furkhan family had sold some of its stakes in related holding companies of the three Confifi hotels – Club Palm Garden (CPG), Riverina Hotel and Eden -- to a consortium led by LOLC and Browns. This consortium now own 52% in Confifi Hotel Holdings, owners and managers of CPG and 25.5% in Riverina which they bought in late May while this week they bought 23.71% in Eden.
In late February, LOLC’s Managing Director and CEO, Kapila Jayawardena told the Business Times that they were interested in investing in the hotel sector.The source said that LOLC has decided not to change the names of the three hotels and will not be rebranding them. “By next week new directors of a consortium led by LOLC and Browns will be appointed to Riverina and Confifi Holdings, while the two Furkhans – father and son - will retain their directorships at Eden,” he added. The Furkhans (Prof. M.T.A. and Stefan) still have 22.67% in Eden.