Six directors representing the U.K. Sharma interest in Hotel Services (Ceylon) Limited have tendered their resignations from the company with effect from May 26 following Mr. Nahil Wijesuriya and connected parties acquiring dominant control of the company owning the Hotel Ceylon Continental.

Wijesuriya has been appointed the chairman of Hotel Services from May 25 and Mr. Ben Eliatamby has joined the board with effect from the same date.

Wijesuriya said from Singapore that he now controls around 91% of the company. A mandatory offer is pending at Rs.138 per share for the balance shares not already owned by Wijesuriya and related parties.

For the time being Wijesuriya intends to restrict his board to two members as permitted by its Articles and will consider making other appointments at a later stage.

Sharma who had dominant control of Hotel Services with over 95% of its equity retained some shares for what he called "sentimental reasons." But some analysts, noting that Hotel Services share had hit Rs.150 subsequent to the passing of control, believed that there was a profit potential over and above the price paid for the big block.

They estimate the free float in the company to be around 2%.

Well informed sources said that Wijesuriya who has taken over the running of what was the country’s first five-star property has sought exemption from the minimum rates imposed on the city five-stars in the context of his property being located in the very heart of Colombo’s high security zone.

Official sources confirmed that Wijesuriya has written to Tourism Minister Milinda Moragoda explaining that the Ceylon Hotel Continental, given its location, had to contend with a myriad of business-depressing considerations.

In this context, he was seeking some flexibility on the rates at which he could market the hotel.