Maldivian hotels resume operations, Avg room rates above expectations: JKH

Jan 29, 2020 (LBO) – Sri Lanka’s diversified John Keells Holdings says that all four of their Maldivian hotels are now in operation with the completion of the partial refurbishment of Dhonveli and the reconstruction of Hakuraa Huraa in December 2019.

Following the refurbishment of Ellaidhoo Maldives and the water suites at Dhonveli Maldives last year, the average room rates recorded for the quarter under review are above expectations, JKH said.

Against the backdrop of the April 2019 incident, both the City Hotels sector and the Sri Lankan Resorts segment recorded a decline in occupancy and average room rates.

“We are however encouraged that occupancy at our hotels has recovered faster than expected with forward bookings continuing to maintain an upward trend where occupancy in the peak season is in line with the previous year, albeit at a moderately lower room rate,” JKH Chairman Krishan Balendra said.

“The tourist arrivals to the country have witnessed a gradual recovery, as expected, and is now close to pre-incident levels, although recent developments with the spread of the Coronavirus in the region could have a negative impact if the outbreak is not contained.”

Meanwhile, the construction of Cinnamon Life is progressing and the full completion of the project is on track for the first half of 2021 and the handover will commence with the Office tower, from April 2020 onwards.