Flamboyant business leader Nahil Wijesuriya, a success story in the country’s contemporary business scene, has wrapped up a tidy capital gain of Rs. 646.3 million on Friday’s sale of a controlling 51 percent stake of Hotel Services (Ceylon) PLC to the Hayleys conglomerate at a price of Rs. 21 per share in a deal worth nearly Rs. 1.89 billion.

Wijesuriya who will continue to hold 25% of Hotel Services said yesterday that his cost per share was R. 13.80 he was confident that the new controllers of the property will drive up its share value and if it hits Rs. 40 a share, he may well exit at a price of around Rs. 42.

``Dhammika is hungry for business,’’ Wijesuriya said referring to BOI Chairman/Director General Dhammika Perera who is the single biggest shareholder of Hayleys. ``I walked him through the property on Friday and he saw the potential of the hotel in the context of the current demand for rooms.’’

Analysts expect that Hayleys who have made banking arrangements to supplement internally generated cash to meet the purchase consideration will divest some idle or non-performing assets at the right price to keep its gearing as low as possible. The strategies to be followed are likely to be revealed in the company’s next annual report due in the next couple of months.

Well informed sources said that the hotel had been shown to JKH and to a Chinese party before Wijesuriya, who a couple of months ago revealed he was an ``aggressive seller,’’ struck the deal concluded on Friday.

Hayleys who are into leisure, largely in partnership with the Jetwing Group, have major stakes in top class properties including the Lighthouse Hotel in Galle and Hunas Falls, Elkaduwa, rated as the country’s most popular honeymoon hotel, also have interests in beach properties.

Currently led by Mr. Mohan Pandithage, Chairman/CEO of the Group responsible for building its maritime, logistics and transportation segment, analysts widely expect focus on core businesses including hand protection (Dipped Products), purification (Haycarb), plantations, power and energy and others with stress on a realistic return of assets.

The Rs. 1.9 billion investment in Hotel Services, a senior Hayleys executive said, was the biggest single investment made by the group in recent years. Wijesuriya said that key Hayleys people have already moved into the hotel to assume hands on management with Mr. Sunil Dissanayake, from the Hayleys leisure division, leading the team.

Until formalities involving the mandatory offer of the Rs. 21 price which Hayleys is now obliged to make to minority shareholders, the present Hotel Services board comprising Wijesuriya and his two children, Ben Eliyatamby, P.C. and Sunil Abeyratne will remain in place until a new board reflecting control of the company is inducted in the next few days.

``Our articles allow 12 directors and there will be no problem in constituting a board reflecting the ownership structure,’’ Wijesuriya said.

Given that the market took the Hotel Services share on Friday to a high of Rs. 23.50 after control had changed at Rs. 21, as well as Wijesuriya’s decision to hold on to his 25% slice with demand for city hotel rooms growing, it is unlikely that there will be any major increase in the Hayleys stake following the mandatory offer, analysts said.

The beachfront Ceylon Continental Hotel, originally franchised to the globally reputed Intercontinental chain for management, commands a sea view from each of its rooms and both a sea and harbour view from the better rooms and suites.

``I can still remember Lester Weinman and I looking at the Intercontinental from our small fourth floor office on the fourth floor of Ceylinco House never imagining that I would one day control the hotel,’’ Wijesuriya chuckled yesterday.