Laugfs Gas acquires a firm with a beach property to expand its leisure business

market bull

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Sri Lanka’s listed Laugfs Gas PLC has acquired Mag Consultants and Agents Private Limited and its assets including 15 acres of prime sea front beach property at Waskaduwa, for a sum of Rs. 500 million. The Company says the 100% acquisition done through its subsidiary Laugfs Leisure Limited will be used to expand the company’s leisure sector.

econ

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another hotel expansion .lol. too many hotels but little tourists..

Slstock

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@econ wrote:another hotel expansion .lol. too many hotels but little tourists..

I too am wondering whether we are going overboard ( extreme) with tourism and hotel rooms. There is a massive overhead costs for these . How long will it take them to build and then realize profits and pay back the loans if any? And that too will much competition coming in now. It is good to find how many new hotel rooms are coming up , overall in the country and what areas. Even if Tourists double ( 2 million) within 2-3 years , they are all not going to stay at 4-5 star hotels.

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@econ wrote:another hotel expansion .lol. too many hotels but little tourists..

Good move we Sri Lankns need more & more Hotels, Coz the competition will bring down the Rates of each other....Will you believe me...for the past 30 years these hoteliers begged Local & Offered wonderful & reasonable packages etc etc... last year when I contacted few hotels...the Bloody F...s refused to accommodate Locals & were highly optimistic for foreigners..finally got one hard try worked...but what..those F...s billed us the same as Foreigners...... Twisted Evil

Therefore, as Locals we should expect more Hotels coming up...so the managements will have to serve the locals too to cover up their cost and make profits...until that day ..our fellas will never remember the past & pay gratitude to locals who helped them during the hard times... Twisted Evil

UKboy

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@slstock wrote:

@econ wrote:another hotel expansion .lol. too many hotels but little tourists..

I too am wondering whether we are going overboard ( extreme) with tourism and hotel rooms. There is a massive overhead costs for these . How long will it take them to build and then realize profits and pay back the loans if any? And that too will much competition coming in now. It is good to find how many new hotel rooms are coming up , overall in the country and what areas. Even if Tourists double ( 2 million) within 2-3 years , they are all not going to stay at 4-5 star hotels.

I was in Sri Lanka last December and quite amased to see how much these hotels charge from foreigners. Ok there are many wealthy tourists but some hotels demand unrealistic prices for their rooms and facilities. I wonder how a middle class sudda couple can afford a two weeks holiday in sri lanka. Rolling Eyes

I heard that all the 5 star hotels are operating around 60 70% capacity. Since government introduced compulsory 5 star room rates, these hotels are getting less attractive.

In a country like Thaliland or Malaysia you can get a bloody good 4-5 room for the same amount as some two star hotels in Sri Lanka. Even in Euorpe hotel prices are also not too bad ( I meant 3-4 star hotels)

Kumar · 6 Tourism Numbers Games Sun Feb 19, 2012 12:36 am

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By Prema Cooray
While tourism numbers are impressive, several of those registered as tourists are in fact from the Sri Lanka diaspora who stay in apartments and not necessarily in hotels, an industry person told this reporter.

Hotelier Prema Cooray said that with the tourism boom after the war end, there is a danger that hotels may overprice themselves. “The industry was warned about it by the tour operators and it’s happening, especially as far as the Nordic market is concerned,” he said.

“As such we are losing them to cheaper destinations closer to their region,” said Cooray. He said that in package tours 60% of the cost comprises the air ticket. “So when our hotels become expensive, those visitors change course and instead go to areas closer home for a holiday, saving on their airfare,” he said.
Cooray said that the smaller hotels along the coastal belt, in areas such as Hikkaduwa and Negombo have been affected as a result.

However that may be, Cooray was instrumental in getting several blue chip companies such as John Keells and Hemas to invest in an environmentally friendly upmarket tourist hotel in the Sinharaja rain forest in a US$ ($) 3.5 million investment, where the charges are $ 200 for half board and lodging per night. With a number of the lodges already completed, Sinharaja Rainforest Eco Lodge is expected to be fully running by April.
http://www.thesundayleader.lk/2012/02/19/tourism-numbers-games/

chamith

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@UKboy wrote:

@slstock wrote:

@econ wrote:another hotel expansion .lol. too many hotels but little tourists..

I too am wondering whether we are going overboard ( extreme) with tourism and hotel rooms. There is a massive overhead costs for these . How long will it take them to build and then realize profits and pay back the loans if any? And that too will much competition coming in now. It is good to find how many new hotel rooms are coming up , overall in the country and what areas. Even if Tourists double ( 2 million) within 2-3 years , they are all not going to stay at 4-5 star hotels.

I was in Sri Lanka last December and quite amased to see how much these hotels charge from foreigners. Ok there are many wealthy tourists but some hotels demand unrealistic prices for their rooms and facilities. I wonder how a middle class sudda couple can afford a two weeks holiday in sri lanka.

I heard that all the 5 star hotels are operating around 60 70% capacity. Since government introduced compulsory 5 star room rates, these hotels are getting less attractive.

In a country like Thaliland or Malaysia you can get a bloody good 4-5 room for the same amount as some two star hotels in Sri Lanka. Even in Euorpe hotel prices are also not too bad ( I meant 3-4 star hotels)

I saw a Sri Lanka tour 7 day holiday package in a local holiday company. Their price tag was 800£. I saw this few months back now it would be more as foreigners have to pay the visa fee also. At the same place they advertise for Turkey, Spain, Cyprus for under 200£. If we consider a family with 2 kids the package will come up to over 3000£. This is a very very high amount. The price is the biggest deal breaker.

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Laugfs Gas acquires a firm with a beach property to expand its leisure business

1 Laugfs Gas acquires a firm with a beach property to expand its leisure business Sat Feb 18, 2012 6:15 am

market bull

2 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business Sat Feb 18, 2012 9:14 am

econ

3 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business Sat Feb 18, 2012 9:20 am

Slstock

4 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business Sat Feb 18, 2012 12:44 pm

RIO

5 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business Sat Feb 18, 2012 6:20 pm

UKboy

6 Tourism Numbers Games Sun Feb 19, 2012 12:36 am

Kumar

7 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business Sun Feb 19, 2012 4:28 am

chamith

8 Re: Laugfs Gas acquires a firm with a beach property to expand its leisure business

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