Companies

Sri Lanka’s John Keells sells Cinnamon Citadel for Rs2.7bn

John Keells Hotels has sold a 98.39 percent stake in Kandy Walk Inn Limited, the company that owns the Cinnamon Citadel hotel, to Lavendish Leisure of the Dedigama Group, for 2.777 billion rupees.

“The divestment is aligned with the asset light strategy of the hotels business and the commencement of operations of Kandy Myst by Cinnamon, the operating entity of which is 40% owned by the Company.”

The deal is expected to close by March 31, the company said in a stock exchange filing.

John Keells Hotels will maintain its current branding and management for at least one year according to terms of the agreement.

Th funds from the sale will be reinvested to modernize and improve the company’s remaining hospitality portfolio, John Keells Holdings said.

source: Economy Next