Fortress Resorts goes for new five star hotel

Wednesday, 28 December 2016 08:00 - - {{hitsCtrl.values.hits}}

Fortress Resorts, is set to build a 66-room five-star beach resort on the south coast for Rs. 2.1 billion. The initial investment of Rs. 364 million for the project was made through La Forteresse Ltd., a fully owned subsidiary of Fortress Resorts. Fortress Resorts said in a CSE filing that fully owned subsidiary La Forteresse Ltd. invested the money in Alila Hotels & Resorts Ltd. to set up the hotel at Thalaramba, Weligama.

The hotel is to be built by Alila Hotels & Resorts Ltd. at a cost of Rs 2.1 billion which includes the land cost of Rs. 345.8 million.

The Company said as any expansion of the existing hotel “The Fortress” is limited, the Board decided to invest in a new hotel project with a view to maximising future returns in the long term by optimising the strengths with the Company and harnessing the expected growth in the tourism sector.

La Forteresse now owns 99.9% of Alila Hotels & Resorts Ltd., which will be subsequently diluted to 51%, the statement said.

The investment by La Forteresse in Alila Hotels is to finance the purchase of three acres of land at Weligama which Alila had bought for Rs. 345.8 million from LB Finance, a finance firm controlled by Perera.