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24 December, 2013 07:19 AM Source: Financial Times - Sri Lanka
Hotel.jpg

Added luxury, new facilities and higher material prices have pushed the cost of upcoming Citrus Waskaduwa resort by an extra Rs. 902 million as opposed to Rs. 1.8 billion stated in the IPO prospectus, the company has disclosed.
The company said Citrus Waskaduwa is well on the way to start operations ahead of schedule in early 2015. Although it was originally planned to be marketed as a four star property, Citrus Waskaduwa will now be marketed as a five star property.
This is following the overall product offering of the 150-room property redefined with added luxury, upgraded facilities and new amenities.
“This is due to changing market conditions and the evolving demand of the trade and tourism industry. The anticipated landscape of the hospitality offering in this geographic area has also changed. This has created an opportunity for a premium property in Waskaduwa. Citrus Hikkaduwa was upgraded and refurbished recently which gave rise to the need for the Citrus brand to offer a solution to tourists from the supper segment of the market,” the company said in its filing to the CSE.
Expedited construction has also faced many challenges such as escalation of construction related items including cement, steel, sand, bricks, tiles and glass. In addition, fluctuation in exchange rates has also adversely affected cost of imports of construction material and hotel operating equipment.
The Board of Citrus Waskaduwa has proposed to raise additional cost by way of inter-company borrowings or financial institutions or by way of an injection of fresh capital, the company said adding that a final decision would be taken in the near future.

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