Araliya Hotels maps out major expansion drive with new 300-room Madinnagoda city hotel leading charge

By Nishel Fernando
Araliya Hotels, the indigenous hospitality chain owned by prominent Sri Lankan entrepreneur Dudley Sirisena, is embarking on a massive expansion drive to add three new properties to its portfolio. 
The strategic move will see the group increase its total room inventory from the current 965 keys to nearly 1,500 over the next two and a half years. 
Underscoring a strong vote of confidence in the local tourism sector, the upcoming developments will be entirely funded through direct capital injections by the group.
“We do [it] directly. Araliya Hotels don’t have any other joint ventures,” Araliya Hotels CEO Ruwan Kalugala Muhandiram told Mirror Business last week.
A centrepiece of this aggressive growth strategy is a highly anticipated city hotel slated for construction on the group’s land in Madinnagoda. Currently undergoing the necessary regulatory approval processes, the massive five-star development will feature over 300 rooms built around a unique, environmentally friendly concept. 
The property is specifically designed to cater to both business and leisure travellers seeking a distinct, premium atmosphere slightly removed from the heavily congested commercial centre of Colombo. 
“Colombo also, now it’s all going under approvals,” Muhandiram noted adding, “We are planning a different concept, which we needed in Colombo.”
Alongside the Colombo development, the group is rapidly advancing its footprint in other key tourist hotspots to bridge the existing accommodation gaps, aligning with the company’s broader corporate goals.
“Our Chairman’s vision is to add more rooms because in Sri Lanka, rooms are actually not enough,” Muhandiram explained. 
To that end, the groundwork for a new property in Kandy is already nearing completion. 

Furthermore, a new luxury collection property will be established in Unawatuna to absorb the heavy overbooking the group currently experiences during the peak southern coastal season. 
Highlighting the unique aesthetic of their coastal developments, he noted that the new Unawatuna property will feature a “12th-floor rooftop pool, which is with the sea, a natural studio”.
While the exact capital commitment for this upcoming phase of development is yet to be officially disclosed, the group has already cemented its status as a major financial force in the local hospitality sector. 
Elaborating on the scale of their financial commitments, Muhandiram revealed that Araliya Hotels has already poured nearly Rs.50 billion into its existing footprint across the island, which includes flagship properties in Polonnaruwa, Unawatuna and Nuwara Eliya.
“In the hospitality sector, right now we spent a lot, nearly Rs.50 billion ... all we (have) done is investment in Sri Lanka. To the Sri Lankans,” he stated.
Looking ahead, the hotel chain remains highly optimistic about the long-term prospects of the local tourism industry, despite the recent domestic and macroeconomic fluctuations. 
Outlining the timeline for the new properties, Muhandiram noted that the rollout would take “maybe two and a half years” as they progress “step by step”. 
The management expects a strong influx of tourists from the Indian and Chinese markets to continuously revitalise the regional operations. 
By actively expanding its offerings across the four-star and five-star categories, Araliya Hotels aims to align its growth with the national requirement for a substantial increase in overall room capacity.