Anilana to invest Rs. 4.6 billion on next three hotels

7 June 2013 02:59 am Views - 3887

Anilana Hotels and Properties Ltd Sri Lanka will be investing approximately Rs. 4.6 billion in the construction of its next three hotels, according to its founder, high net worth investor, Asanga Seniviratne.

The 3 properties in question are based in Vakarai, Seladive Island and Blue Lagoon.

The hotel chain is currently looking to raise approximately Rs. 960 million in equities through its Initial Public Offering (IPO) which will be opening on the 12th of June 2013.

When asked about current market sentiments around Anilana, given that it is the first IPO in over a year, Seniviratne expressed confidence that the IPO would be oversubscribed.

“There are a lot of institutional funds looking to invest in high growth stocks and Anilana is very well placed to really capitalize on the growing popularity of Sri Lanka’s East coast tourism.”

Seniviratne went on to state that cobranding partnerships were currently being explored by Anilana, and has already entered into negotiations with a foreign party.

Anilana’s expansion drive has a targeted opening of 450 rooms within the next 3 years in Passekudah, Nilaveli, Dambulla, Panichchankani, Seladive Island, Vakarai and Blue Lagoon.

The Passekudah property is currently operational with Nilaweli expected to open in the short term.

Anilana will also be operating its own in-house training programme in order to ensure an adequate labour force for its new developments. “There is definitely an issue with regard to labour supply and that is one of the reasons we have decided to draw the labour force from surrounding areas and provide them with comprehensive in-house training instead of importing a workforce.”

“Demand for tourism on Sri Lanka’s East coast is very high from emerging markets as well as the Sri Lankan diaspora, but it is crucial that we upgrade our products in order to attract the right kind of clientele; this is an area that we have been very conscious of in the development of the Anilana brand,” Seniviratne stated.

The brand is targeted at the up-market traveler segment and has been estimated to have a fair value of Rs. 5.5 billion.