LOLC Leisure has finalised the international hotel chain operator to rebrand and manage some of its hotels bought from the Furkhan family one year ago. It is also planning an Initial Public Offering (IPO) in a bid to raise funds for the planned refurbishment and expansion, sources close to the company said.
They said the Hilton chain will most likely manage Riverina, Club Palm Garden and Tropical Villas while negotiations are still on for a partner for Eden. These hotels have been closed for business for 18 months since May 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.