Hemas Group -Thai hotel chain in the works

By Duruthu Edirimuni

Hemas Holdings, on the back of a leisure sector turnaround, boosting profits by Rs.82 million, is gearing to explore other possible hotel ventures with its partner Minor International in Thailand.

“This is a long term plan which we are exploring and will act on as soon as the opportunity arises,” Hussein Esufally, CEO Hemas Holdings told The Sunday Times FT.

He said that the industry recovery during the summer season had boosted profits and the MOU signed with Minor Group to develop hotel properties belonging to Serendib Group will reposition existing hotels into high yielding up-market boutique type resorts.

Esufally said the company’s other new projects involve a hospital project in Wattala, expanding the regional freight network and the commissioning of a mini-hydro project.

“There is a JV agreement signed with Columbia Asia to setup a 100-bed hospital in Wattala and the construction will commence later this year and commercial operations will start in mid-2008,” he added. He said that Columbia Asia is a regional healthcare provider, operating in Malaysia, in Vietnam, and in India. The hospital chain’s website has confirmed that they will enter Sri Lanka in 2006.

The Hemas CEO said that the funding required for these projects is about Rs1. billion and will be raised through debt. “New investments over the next year are expected to contribute 25 percent of group earnings by 2010,” he added. Among the concerns faced by the company, he said the depreciating exchange rate and the rising inflation are issues and hoped the MoU between the two main parties and the Geneva talks will provide a breakthrough in the peace process.