La Forteresse (Private) Limited, a fully owned subsidiary of The Fortress Resorts, made an initial investment of Rs.364 million in Alila Hotels and Resorts for a 66 roomed five star hotel at Thalaramba,Weligama to at an estimated cost of Rs.2.1 billion, which includes the cost of land for over Rs.345 million.
The hotel project is undertaken by Alila Hotels & Resorts and La Forteresse (Private) Limited now holds 99.99% of the issued shares of Alila Hotels & Resorts which will be subsequently diluted to 51%.
Citing the rationale for entering into this transaction, the company said that as any expansion of the existing hotel ‘The Fortress’ is limited, the board has decided to invest in a new hotel project to maximise future potential in the long run by optimising strengths within the company and harnessing the expected growth in the tourism sector. (IH)
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