Browns to sell 5 hotels

Browns Investments, controlled by the LOLC Group, 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 Pasikudah and Kosgoda Turtle Bay (still being built), informed sources said.

The share price surge at Eden during the past two months was owing to the internal restructuring at Eden where Browns sought to bring Paradise and Dickwella shares under this company. They did this internal restructure to ease the potential sale, the sources told the Business Times.

Eden’s share price, which was at Rs. 10 in March, rose to Rs. 28 this week with stockbrokers anticipating that something was ‘up’. Browns will be retaining its ‘big’ hotel Riverina, the sources added. “They will concentrate on promoting that,” a source added.

He said that Browns is eyeing both local and foreign buyers. The four hotels in operation are generating moderate results despite the challenging environment in which they operate, he said adding that in comparison to the previous year higher profits are expected in 2017/18.