John Keells Hotels to sell Cinnamon Citadel owner to Lavendish Leisure for Rs. 2.78 b

Friday, 13 March 2026 00:25 - - {{hitsCtrl.values.hits}}

John Keells Hotels PLC said it has entered into a binding agreement with Lavendish Leisure, the hospitality arm of the Dedigama Group, to divest its majority stake in Kandy Walk Inn Ltd., (KWIL), the owning company of the Cinnamon Citadel hotel in Kandy.

The company said the transaction involves the sale of its entire shareholding in KWIL, representing 98.39% of the issued share capital of the company, for a consideration of Rs. 2.777 billion.

KWIL owns the Cinnamon Citadel property, one of the longstanding hotel assets in the Group’s portfolio located in Kandy.

John Keells Hotels 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, after which the arrangement will be subject to review.

The company said the divestment is consistent with its asset-light strategy for the hotels business.

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

According to the company, the proceeds from the sale will support the optimal allocation of capital towards upgrading its hotel portfolio in line with the positioning and future outlook of its properties.

The transaction is expected to be completed by 31 March, with the company noting that a further announcement will be made once the deal is finalised.