Tangerine subsidiary to launch first Colombo city hotel this year
22 Jun 2015 - {{hitsCtrl.values.hits}}
By Chandeepa Wettasinghe
Tangerine Hotel Group subsidiary The Nuwara Eliya Hotels Company PLC will be launching its first Colombo city hotel within the current financial year.
The Fair View Hotel is located in Wellawatte and will offer 50 luxurious rooms in a bed and breakfast accommodation plan. It is hoping to draw most of its reservations through online booking sites.
The Nuwara Eliya Hotels Company, which owns the iconic Grand Hotel, purchased 59 percent of the shares in Fair View Hotel (Pvt.) Ltd in 2013/14 for Rs.160 million.
However, during the 2014/15 financial year, it increased the shareholding to 71 percent by investing a further Rs.340 million.
According to the The Nuwara Eliya Hotels Company annual report, the final investment in Fair View Hotel will be Rs.550 million, forming just over 75 percent of the pre-operational cost of the subsidiary.
The investment comes at a time when both local and foreign tourism experts have highlighted that only five-star, boutique and informal accommodation sectors have been experiencing 75 percent occupancy rates, while everything in between have had an occupancy rate around 35 percent.
