LOLC Leisure resorts closed for Rs. 2.5 b upgrade

Tuesday, 10 May 2011 00:00 - - {{hitsCtrl.values.hits}}

Club Palm Garden Hotel, Riverina Hotel and Tropical Villas will be closed for business for 18 months from now for an accelerated refurbishment programme.

LOLC Group, which acquired these properties, said the refurbishment programme would be supported by a substantial investment, transforming them into the league of the best beach hotels in Asia and managed by a globally reputed hotel management company.

The Group said final negotiation with the international operator is expected to be concluded shortly.

Post announcement only Riverina Hotel share price gained by Rs. 5.90 to close at Rs. 126.50, whilst Confifi dipped by Rs. 22.80 to Rs. 226.20.

Sources said that upgrade of the three resorts will be around Rs. 2.5 billion with Club Palm and Riverina which are the bigger of the trio incurring a larger part.

The refurbishment will also be used to harness shared services between the three hotels, which are located close to each other.

The combined portfolio of Eden, Palm Garden, Riverina and Tropical Villas gave LOLC Leisure Group a strength of over 500 rooms in the southern coast.