LOLC Holdings PLC’s strategic Investment arm, Browns Investments PLC (BI), acquired a controlling stake of 55.65% of Serendib Hotel PLC (Serendib) for Rs. 792 mn. With this acquisition, BI will hold 56.67% of voting shares and 53.48% non-voting shares of Serendib. The investment was made by BI’s subsidiary leisure company, Eden Hotel Lanka PLC.
With this investment, BI will add Club Hotel Dolphin, Hotel Sigirya, Avani Bentota Resort and Lantern Beach Collection, Mirissa along with their management companies to BI’s existing leisure portfolio, The Eden Resort & Spa in Beruwala, The Paradise Resort & Spa in Dambulla, The Calm Resort & Spa in Passikudah and Dickwella Resort & Spa, Sheraton Kosgoda Turtle Beach Resort managed by the Marriott Group and Riverina Resort in Beruwala with 375 keys, which is under construction.
“The carefully executed investment strategy of BI with a focus in the leisure sector building the optimum footprint, is well positioned to capture the post Covid growth in the tourism business. Building the construction business with complementary businesses and growth in the agriculture and plantations with expansion into value chain development will position Browns Investments as a strong and robust diversified Group within the LOLC Group with strong shareholder value creation in the medium to long term,” said Chairman, Browns Investments PLC, Ishara Nanayakkara.
In the Maldives, BI’s leisure properties under construction include Nasandhura Palace Hotel in the city of Malé and Bodufinolhu in the Ari Atol. Nasandhura Palace is in the most coveted location in the city, nearing construction and will be ready for occupancy in the year 2021 and is a mixed development consisting of 118 luxury apartments, a five-star hotel with 135 keys and an upscale mall with shopping and entertainment. Bodufinolhu, an international four-star property, once ready for commercial operations in 2021 will have a mix of water villas, beach villas and beach suites accounting for 100 keys.
The Group also has the lease rights to three islands reclaimed in North Malé, Bodufaru, Kaafu Atol which is to be developed as three five star properties with a total of 470 keys. BI entered into a management agreement with Barceló, one of the largest global hotel operator chains to manage The Eden Resort and Spa, The Paradise Resort and Spa, Nasandhura and Bodufinolhu. Barceló is to make an equity investment of 30% into the development of Bodufaru three island project.
The new investment will expand the leisure footprint of BI and will be a strong growth sector post Covid-19, gaining momentum in the latter part of 2021.
The company believes that the new investment will complement its long-term leisure strategy of building a diverse leisure portfolio in Sri Lanka and in the Maldives.