Sri Lanka's Browns Investments to sell five of its hotels following restructuring

The Eden Resort and Spa, Beruwala, Sri Lanka

Sri Lanka-based LOLC Group's Browns Investments has plans to sell five of its hotels: The Eden Resort and Spa in Beruwala; Dickwella Resorts; The Paradise Resort & Spa in Dambulla; The Calm Resort and Spa in Pasikuda; and Kosgoda Turtle Bay, which is under construction, Business Times reported.

The share price surge at Eden during the past two months is due to Eden's internal restructuring where Browns sought to bring Paradise and Dickwella shares under this company. This internal restructure was intended to ease the potential sale, an unnamed source told the Business Times.

Eden’s share price increased from $.16 in March to $.43 this week. Stockbrokers were anticipating that something was "up." Browns will keep its hotel Riverina. “They will concentrate on promoting that," the source added. The Riverina Hotel development project is currently underway to renovate the former Riverina hotel into a 365-room upscale resort. Negotiations are also underway to secure a management deal with an international hotel chain to operate and manage the hotel on a long-term basis. 

Virtual Event

HOTEL OPTIMIZATION PART 2 | Now Available On-Demand

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


He also said that Browns is searching for local and foreign buyers. The four operating hotels are generating moderate results despite the challenging environment in which they operate. Compared to last year, higher profits are expected in 2017 and 2018.

LOLC divested its leisure department LOLC Leisure to Browns Investments in March 2014 for $43.42 million. LOLC Leisure made up a 70 percent subsidiary of LOLC and ran the five hotels and resorts. Browns Investments held the other 30 percent of the company. 

Suggested Articles

From services to small products in the bathroom, these guest amenities will become guest expectations in the near future.

With demand for contactless experiences on the rise and new programs coming online, property-management systems are evolving.

During the “Best Practices in Cleaning” panel, insiders shared how hoteliers can keep guests and employees safe.