The Softlogic Group which recently signed up for a US$ 10 million loan from the International Finance Corporation (IFC) to renovate and expand Hotel Ceysands, is likely to expand its leisure business to other coastal areas, officials said.
They said that Softlogic, which bought the former Ceylinco group-owned Ceysands for Rs.925 million, is considering expansion on the long term. “Tourism is a boom sector and we will expand possibly to other coastal areas in the longer term as right now it’s a consolidation phase for us,” an official told the Business Times. He said that the IFC loan will be used to renovate and convert Ceysands’ 66-room hotel in Bentota to a 166 room, 4-star resort.
The hotel is to be managed by the Centara, a Thailand based leisure brand. Centara Ceysands Resort & Spa as it’ll be called is in a strip of land flanked by a river on one side and a beach on the other. The hotel is accessible only by ferry, the official said.
Recent results released by Softlogic shows first quarter net profit for this year up 169 per cent to Rs 275.5 million chiefly due to the consolidation of its hospital operation (which contributes nearly 34 per cent to the group) while net earnings from other business segments also have increased by 137 per cent year on year.
During this quarter, the strongest net profit growth was recorded in retail (up 262 per cent year on year to Rs 99.2 million) and automobile sales (Rs 30.9 million against Rs 0.2 million in the corresponding quarter). Analysts say that Softlogic’s recently acquired insurance business could also bolster earnings growth.