JKH eyes new resort project as tourism rebound fuels demand

Chairperson Krishan Balendra

By Nishel Fernando

John Keells Holdings (JKH) is evaluating the feasibility of constructing a new resort on its undeveloped land bank, as the country’s tourism sector stages a robust recovery with the arrival numbers projected to hit record highs in early 2026.

JKH Chairperson Krishan Balendra, addressing an investor webinar on the group’s third-quarter performance, signalled a shift in strategy, fuelled by the surging demand. He noted that with the occupancy levels rising and room rates improving, the conglomerate is actively assessing the potential of its non-operational real estate assets.

“We are evaluating the construction of a new resort on our undeveloped land banks,” Balendra stated, highlighting that the decision is underpinned by the sustained demand for leisure assets. 

He indicated that the group is seeing a consistent “strong demand” for its properties, which is translating into better yield management across the chain. The potential expansion comes as the group’s hospitality sector witnesses a surge in activity, absorbing new capacity at an unprecedented rate. Colombo city hotels have recorded occupancy levels skyrocketing to over 70 percent, defying earlier concerns of a glut, despite a significant increase in room supply within the capital. 

The occupancy levels at the group’s Sri Lankan resorts have also shown strong momentum, trending upwards of 70 percent in recent quarters.

In January 2026, tourist arrivals were up by nearly 10 percent year-on-year, setting a new record for the month. This resilience follows weather-related disruptions in late 2025, with Balendra remarking that the impact was “not as significant as initially feared”, allowing the leisure and banking sectors to bounce back rapidly. 

The group’s leisure sector has been a primary contributor to its financial turnaround, with the flagship City of Dreams project recording its first positive EBITDA of Rs.1.44 billion for the quarter. 

With the West Container Terminal’s first phase already operating at near 90 percent capacity and the tourism sector demonstrating sustained growth, the group appears positioned to broaden its focus back to expanding its resort portfolio.