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Surfs Up


On Friday the shareholders of Associated Hotels Co. Ltd., agreed to sell the beach front property as funds for development was not forthcoming.

rn rnCompany Spokesperson Kumar Mallimarachchi told Lanka Business Online that shareholders were unable to pump in additional funds to upgrade the hotel to compete with neighbouring star class hotels.

rn rnldblquote Some of the rooms are not up to standard and are below the level of some of the hotel in the area, says Mallimarachchi. ldblquote We expect to sell a share at Rs. 25.00 to Rs. 28.00 dblquote .

rn rnMallimarachchi says the company had spoken to foreign investors, but had not closed any deals yet.

rn rnThe 86 Roomed hotel adjacent to the beach and the river was popular among the water sport enthusiasts.

rn rnHowever, declining standards, intense competition in the vicinity and a lag in the tourism industry eroded the companys popularity over the last few years.

rn rnA bad year in 2001 also hampered routine improvements, industry sourc

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