LOLC Leisure has finalised the international hotel chain operator to rebrand and manage the Confifi hotels which it bought from the Furkhan family one year ago, while planning an Initial Public Offering (IPO) in a bid to raise funds for the planned refurishment and expansion, sources close to the company said.
They said chains such as Hilton, Accor, etc are interested in managing Riverina, Club Palm Garden and Tropical Villas. These hotels will be closed for business for 18 months from May 01, 2011 to complete an accelerated refurbishment programme.
“We plan to spend roughly US$ 30 million in refurbishing its properties,” a source told the Business Times. He added that the IPO details are also being finalised to fund both the refurbishment and expansion of hotels.
The Furkhans sold some of their 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 last year. This consortium now own 52% in Confifi Hotel Holdings (the owners and managers of CPG), 25.5% in Riverina and 23.71% in Eden. Further firming its position in the country’s famed golden mile, the company bought a 60% stake in Tropical Villas, a beach resort with 50 luxury villas in Beruwela, through a subsidiary LOLC Leisure last August.
“With the Confifi hotels and this latest acquisition, LOLC has now increased its footprint to over 25 acres of prime beach front land,” the source said, adding that the total acquisition cost of all the hotels are more than Rs 800 million.