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John Keells Holdings (JKH) plans to develop a total of 1000 rooms of the business-leisure segment in Colombo and, as part of this strategy, has joined up with developer Sanken Lanka Pvt Ltd to build a business hotel in Colombo.

The duo are investing in a 25 storey, 240-room business hotel worth Rs 2.9 billion in the heart of Colombo, with Sanken being the major shareholder and JKH having a minority stake while Keells Hotel Management Services will be the hotel operator, according to a JKH statement.

Facilities include a160 pax restaurant on the 24th Floor with a roof top swimming pool, bar, open air lounge and gym facilities offering a panoramic view of the city. Construction will be completed in approximately 33 months and commercial operations will commence thereafter.

“JKH will launch a new brand in six months which will convey the efficiency of a conventional value brand whilst offering a design of a chic boutique business Hotel,” the statement said. Sanken Lanka will be the main contractor for the project which will be on a Design & Build basis with Design Team 3 of Singapore being the project architects. 

JKH Deputy Chairman Ajit Gunewardene said, “based on our long term strategy, we believe that Colombo requires an efficient and modern business hotel offering ultra-comfort with efficient services at a competitive price for the business traveller. This project would be just the start in taking our strategy forward while adding to and complementing our brand portfolio. Our goal in the medium term would be to develop a capacity of around 1,000 rooms in this segment”.

Colombo currently has a room capacity of approximately 500 – 600 rooms in the 3 star and lower categories which is inadequate given the expected surge in demand in business related travel in the next two to three years.