Sri Lanka has attracted a new investor for the tourism industry, Auro Holdings that intends on opening up hotels in Tangalle, Colombo, Kalpitiya and Vakarai.
The new player in the hospitality industry, Auro Holdings Managing Director Arun Thapar meeting journalists in Colombo recently said their first investments will be in Tangalle with the opening of Ranna 212 and Colombo Courtyards on R.A. De Mel Mawatha.
Due to a lack of enthusiasm among foreign tour operators, Mr. Thapar noted they were not previously interested in investing in Sri Lanka as there was no possibility of cashing in on any return on investment.
However, he believes times have changed and more hoteliers and hotel chains are being attracted to this destination in the post war era.
Star hotel in Tangalle
He noted they will be opening Ranna 212 in December this year having already attracted bookings from the European and Russian markets. The property worth US$3.5 million was acquired from a group of Italian investors and a local investor who owned the hotel previously.
The new hotel project will consist of 124 rooms and will be opened initially with 54 rooms in December with the balance 70 to be ready by July 2012. Previously the property consisted of only 20 rooms. The total cost of construction will amount to US$10 million.
Ranna will serve as a resort hotel with a spa, restaurant and pool with both in-house and outdoor activities for visitors.
The hotel’s General Manager Reyhan Morris believes this new hotel is expected to fill the vacuum of hotel availability in the south.
The winter season alone is expected to witness over 70% occupancies with the hotel located on the beach front within 11 acres of land in Ranna at the 212 milepost in Tangalle.
Located in close proximity to the Suriyawewa cricket stadium, the hotel is hoping to attract sport enthusiasts and holidaymakers with intentions of signing up with the International Cricket Council and Ten Sports for future events.
Colombo investment
Meanwhile, the Colombo Courtyards boutique hotel located near the German Embassy in Colombo will comprise 26 rooms in the first phase with 6 more to be added in the second phase. The three storeyed building has been invested with US$4 million which its General Manager Pulinda Fernando notes has been created with a creative eye for detail that is inspired by the rustic look and the love for nature expecting to serve as an ideal location for travellers. This hotel is also expected to open in December this year.
Mr. Thapar noted that their previous experience in the hotel industry was in the Maldives where he has invested in three resorts.
It is based on the experience gained there that Auro Holdings intends to impart their knowledge here in Sri Lanka in relation to service levels and providing on-the-job training for staff.
Investments islandwide
Currently, the organisation is also looking at opening up a hotel in Kalpitiya where they have already purchased land amounting to 25 acres in extent. Mr. Thapar said they were also keen on the Northern and Eastern regions of the country where they continue to have interests.
He noted there are plans to establish in Vakarai since the “beaches are better there” while continuing to look out for more land in other areas as well.
Auro Holdings also intends on entering the hydro energy and wind power sector having already started out in Sri Lanka in the apparel industry. |
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