Sri Lanka gets Thai hotel investment

Aug 10, 2010 (LBO) - Thailand's Minor International has struck a deal with Sri Lanka's Hemas group to acquire and upgrade a beach resort for 22 million dollars under the 'Anantara' brand. A stock exchange filing said Hemas subsidiary Serendib Hotels has got 19.9 percent and Minor International 80.1 percent of the shares of Cyprea Lanka, owner and operator of Kani Lanka Resort and Spa, Kalutara on the island's west coast.

"The total acquisition and development cost of the property is estimated at 22 million US dollars," a statement said.

The 105-room four-star Kani Lanka Resort and Spa is spread across an 18-acre stretch of land situated at the tip of the river mouth of the Kalu Ganga in Kalutara, on the south western coast of Sri Lanka.

The new owners plan to upgrade the existing property and develop a new resort under the ˜Anantara’ brand that will consist of about 120 luxury rooms.

"This will be the first-ever ˜Anantara’ branded resort in Sri Lanka and the first international chain of luxury hotels to come into post-conflict Sri Lanka," the statement said.

Sri Lanka's 30-year ethnic war ended in May 2009 leading to an upturn in tourist arrivals.