Sri Lanka Taj owners may build another hotel: minister

Jan 14, 2010 (LBO) - Investors connected to Taj Samudra hotel in Sri Lanka's capital Colombo may build another hotel in the same premises, economic development minister Basil Rajapaksa said.



The Taj group said late last year that the existing 5-star Taj Samudra may go through a 60 million US dollar upgrade. The group manages a 4-star hotel near Sri Lanka's main international airport and also has a beach resort in the Southwest coast.

The Taj Samudra hotel is controlled by Taj Asia, a joint venture between India's Tata and Cinnovation, a firm owned by Nepali entrepreneur Binod Chaudhary. The hotel is operated by Taj Resorts.

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Rajapaksa said Taj may build another hotel in the same premises after meeting Chaudhary who is currently visiting Colombo to open a re-built hotel belonging to Sri Lanka's Jetwing group. Chaudhary's Cinnovation has stakes in Jetwing hotels.

Taj Samudra is located by the 'Galle Face' beachfront in Colombo. The beach front is to get two new hotels from Hong Kong based Shangri La group and a Chinese state aviation firm.

Sri Lanka is going through a tourism boom after the end of a 30-year war in May 2009.

In 2010 arrivals were up 46 percent.

Room rat