Bansei Resorts ends management agreement with Jetwing

Bansei Royal Res o r t s Hikkaduwa PLC (BRR) terminated its management agreement with the country’s third largest leisure operator Jetwing over differences in opinion on the business model. “It was an amicable thing. We just felt that the budget concept was not going to work there,” BRR Chairman Tilak de Zoysa said. He added that BRR had the capacity to attract tourists of higher status. “We had that status before as well,” de Zoysa added. Jetwing took control of the operational management of BRR in February 2015 and rebranded the hotel as Bansei by Hotel J, the second budget property of the Jetwing group, following Hotel J Negombo.

Under Jetwing, BRR posted a Rs.6.8 million net profit for 2016, compared to a Rs.32.06 million loss in 2015 due to a ninemonth renovation process and a Rs.2.14 million profit in 2014 when a consortium of investors led by Japan’s Bansei Group and Channa de Silva acquired the company.

The company had made a profit of Rs.4.89 million in 2013. The 40-year-old hotel was renamed Bansei Royal Resorts Hikkaduwa from Coral Rock Hotels Limited