JKH completes sale of Cinnamon Citadel owning entity for Rs. 2.78 b

Thursday, 2 April 2026 05:41 - - {{hitsCtrl.values.hits}}

Part of asset-light strategy for its hotels business

John Keells Holdings PLC (JKH) on Tuesday said it completed the divestment of its subsidiary John Keells Hotels PLC’s majority stake in Kandy Walk Inn Ltd., (KWIL), the owning company of Cinnamon Citadel in Kandy, on 31 March.

The company said the transaction involved the sale of its entire 98.39% shareholding in KWIL to Lavendish Leisure, the hospitality arm of the Dedigama Group, for a consideration of nearly Rs. 2.78 billion.

The divestment follows an earlier announcement on 12 March, where the company said it had entered into a binding agreement to sell the stake, with completion expected by end-March.

KWIL owns the Cinnamon Citadel property, a hotel asset within the Group’s portfolio located in Kandy.

John Keells Hotels PLC said that under the terms of the agreement, Cinnamon Citadel will continue to be managed under the Cinnamon Hotels & Resorts brand for a minimum period of 12 months, subject to review thereafter.

The company said the transaction is aligned with its asset-light strategy for the hotels business, while proceeds from the sale are expected to support capital allocation towards upgrading its hotel portfolio.

The move also follows the commencement of operations of Kandy Myst by Cinnamon, whose operating entity is 40% owned by John Keells Hotels PLC.