JKH confident of excellent returns from
refurbished Maldivian resorts

Keells Hotels Limited, which has invested USD 10 million in refurbishing and reconstructing its Maldivian properties, re-launched two of these resorts under the Chaaya brand last weekend hopes to earn around USD 2 million on its Maldivian operation next year on four resorts in the Maldives, JKH Deputy Chairman Ajit Gunawardena said yesterday.

The two resorts that have been re-launched were Chaaya Reef Ellaidhoo and Chaaya Island Dhonveli which are now running at full occupancy.

Gunawardena said that the company invested USD 8 million in refurbishing the 112-room Chaaya Reef adding new "over water villas" (previously called water bungalows) to the property they purchased one-and-half years ago. The resort had been closed over a long period while the new construction and refurbishment proceeded.

In the case of Chaaya Island, the resort was not closed completely and it was running at half its strength of 150 rooms, Gunawardena explained.

The sub lease on another Maldivian resort, the oldest of the John Keells Hotels’ Maldivian operation, runs out at the end of March and the property is being handed back to the lessor, Gunawardena said.

"Once that happens we will be running four island resorts in the Maldives," he said.

Asked whether the lag in the Sri Lanka segment of the group’s leisure operations will be caught up in the Maldives, Gunawardena said that this has happened in the past.

He said that they were getting "excellent rates" on their Maldivian resort with rooms sold between an average of USD 200 to USD 550 in the peak season with considerably higher rates commanded for the Presidential Suites.

"We sold one for 10 days at USD 1,100 a day," he said.

Gunawardena was hopeful that running the four resorts at optimum capacity would yield good results to the JKH leisure segment.

Chaaya Reef is a popular destination for diving in groups looking for sunken shipwrecks in addition to the famed underwater aquatic world available all over the Maldives.

Chaaya Island Dhonveli has 136 villas and bungalows together with 24 over water suites equipped to top international standards.

This resort is particularly attractive to surfers who the company said "come from far and wide" seeking the pounding surf at Pasta Point. The resort offers five restaurants and three well designed bars with live music and dancing every night.

JKH Deputy Chairman Gunawardena and Executive Vice President Jayantissa Kehelpannala running the group’s resort hotel segment along with distinguished Maldivian invitees and others were present at the re-launching of the two resorts on January 13 and 14.