Kandy-Myst by Cinnamon redefines luxury and sustainability in the Hill Capital

The tourism landscape of the picturesque hill city Kandy is all set to be redefined with the launch of Kandy-Myst by Cinnamon.  The highly anticipated property will have its first set of guests walk its doors on 12 February. With an investment of US$40 million, the 15-story, LEED Gold-certified hotel aims to bring a contemporary touch to the historic city, offering modern luxury and international-standard service. Mirror Business sat down with Cinnamon Hotels and Resorts Deputy CEO & COO Hishan Singhawansa and Indra Traders CEO Rushanka Silva in an exclusive interview to discuss the vision, the challenges faced, and what makes Kandy-Myst by Cinnamon a game-changer for Sri Lanka’s tourism industry.

Following are the excerpts of the interview:

Q: Can you share what inspired Cinnamon Hotels and Resorts to expand its footprint in Kandy?

Singhawansa: When we initially looked at this project, Kandy has always been one of the top destinations for any tourist visiting the country. If you look at data and airport surveys, around 60 percent of tourists coming into Sri Lanka visit Kandy. There is inherent, year-round demand in Kandy.

We already have a hotel there, Cinnamon Citadel, but when we assessed this project, we saw enough potential to build another hotel. We then partnered with Indra Traders to explore whether there was another opportunity to do so. The demand has always been growing.

I know the past five years have been tough for the entire country, but prior to that, Kandy had consistently been a year-round destination with occupancy rates exceeding 85 percent. That has been the main reason for us to further explore Kandy, which remains the number one destination for tourists visiting Sri Lanka.

Q: What sets it apart from the other hotels in the city?

Singhawansa: Kandy, as a destination, is always part of any tourist’s itinerary. Visitors typically explore the cultural triangle, visit Kandy, and then head to the beach—it’s a common round trip. This continuous flow of tourists drives Kandy’s high visitor volume.

When Kandy-Myst by Cinnamon has its first set of guests coming in on 12 February, it will be one of the newest properties in the city. What sets it apart from most of the competition is, first and foremost, its newness. Most hotels in Kandy reflect the city’s traditional heritage, whereas this property embraces a more modern, contemporary identity, hence the name Kandy-Myst by Cinnamon. It has a fresh, youthful feel while still drawing design inspiration from Kandy’s rich history. Ultimately, what differentiates it is its modernity and contemporary appeal.

Silva: This new hotel, which we have jointly developed, will set a new benchmark for Kandy. It is one of the few international-standard hotels in the city. If you visit most existing hotels in Kandy, you’ll notice a significant gap in the level of quality and service. What we are introducing is an international-level hotel, incomparable to any of Kandy’s current offerings. It will be a truly unique property.

Singhawansa: Take, for example, Cinnamon Citadel, which was built in 1983. Many hotels in Kandy are decades old and have only undergone occasional refurbishments, maybe once every ten years. Most have not had a full refresh in a long time. In contrast, Kandy-Myst by Cinnamon has been built to entirely new specifications, incorporating modern design, superior quality, and the latest safety standards. It stands apart from the rest of Kandy’s hospitality landscape.

Q:For Indira Traders, what unique aspects are your partners bringing to the table?

Silva: Compared to the rest of Kandy’s hotels, the level of sophistication we are introducing here is unmatched. This is a brand-new property, and we are very excited to see how it evolves over the next few years.

Singhawansa: The most unique aspect is our food and beverage (F&B) offering. We have positioned this as the best restaurant in Kandy. The hotel features a stunning rooftop, the tallest building in the city, offering breathtaking views, an infinity pool on the 15th floor, and a bar and restaurant right at the top.

We expect this to become the go-to destination for anyone in Kandy looking for a great experience. There’s a common perception that Kandy shuts down by 6 or 7 in the evening, but that’s changing. The city is evolving, and there’s a growing need for places where both tourists and locals can unwind and enjoy themselves. We strongly believe this hotel, particularly the rooftop, will become a must-visit spot in Kandy. Beyond just accommodations, we see the F&B experience playing a major role in setting us apart.

Q:With regard to the design,what does it reflect?

Singhawansa: When we began this journey, our architect had a clear vision, to incorporate elements of Kandy into the design. From a Cinnamon brand perspective, we don’t follow a cookie-cutter approach. If you look at our hotels across the portfolio, each one is designed to reflect its unique location, creating a true sense of place. That was a key factor we considered in this project.
When we brought in the architect, the brief was to capture the essence of Kandy, not in a fully traditional way, but through a modern and contemporary interpretation. The design is definitely inspired by Kandy. One of the biggest influences is the Wala Kulu Bamma, the decorative barrier around Kandy Lake, which has been incorporated throughout the hotel’s architecture.

The roof structure is another standout feature. We have a two-feature wall at the top, making it highly visible as the tallest building in Kandy, standing at 15 floors. The rooftop itself features a distinctive design inspired by the iconic Kandy Roof, adding to the hotel’s unique character.

Silva: If I may add, as a family rooted in Kandy, we were mindful of incorporating key cultural elements while also respecting what should and shouldn’t be done. As investors, that was an important contribution we made to the project.

Q: Are there any eco-friendly features?

Singhawansa: Absolutely. This will be one of the few LEED Gold-certified hotels in Kandy—a globally recognized certification for sustainability. We have integrated numerous eco-friendly elements, particularly in energy efficiency and water reuse.

The LEED Gold certification ensures that all sustainability measures incorporated into the building meet high environmental standards. Additionally, the hotel’s vertical design, as opposed to a sprawling layout, significantly enhances energy efficiency by optimizing space and resource usage.

Q: What is the investment in the project?

Silva: We have invested approximately $40 million into this project.

Singhawansa: This has been a long journey. We broke ground in 2019, and since then, we’ve faced numerous challenges—the Easter Sunday attacks, the COVID-19 pandemic, and the economic crisis. Despite these difficulties, as investors and partners, we remained confident and committed, pushing through even during tough times. We never stopped—we only moved forward.

Now, we are extremely excited to finally open the hotel. The good thing is that while our investment is quantified at US$40 million, our revenue is also dollar-linked, as we primarily earn from foreign tourists who pay in USD. This pricing strategy ensures strong economic viability for the project.

Q:Can you elaborate on the project timeline?
Singhawansa:So we started working on the designs in late 2017, and by early 2018, we began the design process in full. It took about a year to secure all the necessary approvals, and once we had them, we broke ground in 2019.

Construction of this 15-storey building began soon after, starting with piling. The structural work was completed early last year, but the journey has been challenging due to the economic crisis. Despite these hurdles, we kept pushing forward because we believe in Kandy as a destination. Rather than halting the project, we remained committed, knowing that Kandy has strong potential.
Silva: We managed to weather the storm through our joint effort. The strength of John Keells and the resilience of Indra Traders allowed us to withstand the shocks. A project of this magnitude could have easily stalled halfway, but our combined expertise and commitment ensured its completion.

Singhawansa: Absolutely. The capabilities of both partners played a crucial role in pushing this through. It hasn’t been easy, finding contractors, sourcing suppliers, dealing with import restrictions, navigating the dollar hitting 380, and managing inflation, all of these challenges tested us. But we persevered and are now thrilled to see this project come to life.

Q:Apart from the two man-made challenges, were there any other significant challenges you had to overcome?

Singhawansa: Most of the challenges were linked to the economic crisis. With Covid-19, there wasn’t much we could do, but we still pushed through by implementing strict protocols and working with fewer people on-site. However, import restrictions were one of the biggest hurdles we had to overcome.

Looking back now, we are proud to have made it through all of that. Despite everything, we are finally opening the hotel, and that’s a huge achievement.

Q:With regard to target audience, are you focusing on domestic tourism, international travelers, or both?

Singhawansa: When designing this hotel, we focused on Kandy as a destination. Most travelers come here for the Temple of the Tooth, using Kandy as a base to explore nearby attractions like the Pinnawala Elephant Orphanage and Peradeniya Botanical Gardens. After a long day of sightseeing, what they really need is a good night’s sleep and a great meal—and that’s exactly what we are offering.

This hotel isn’t a sprawling resort, it’s built with best-in-class rooms for comfort and the largest restaurant in Kandy. we are catering to the round-trip traveler, who typically follows a 7-10 day itinerary through the Cultural Triangle, spends two nights in Kandy, and then moves on to the beach.

Kandy is a year-round destination, with Europeans arriving in winter and Indian and Chinese travelers coming throughout the year. About 80 percent of our guests will be foreign travelers, while 15-20 percent will be locals, a number that will likely increase with improved highway access.

Silva: Our design was intentional, we wanted to cater to this market. We were fortunate to build Kandy’s largest restaurant, seating up to 500 guests at once. We’ve also created unique spaces, a rooftop infinity pool, bars, and restaurants, all of which add tremendous value to the experience.

Q:Are there plans for further expansion in the hill country or similar locations?

Singhawansa: If this project is successful, Silva would explore expansion opportunities. As a company, we already operate 13 hotels across the island, four in Colombo and nine in key resort destinations, spanning the southern coast, central highlands, and east coast.

Looking at the bigger picture, Sri Lanka’s tourism industry has significant growth potential. Last year (2023), we received 2 million tourists, while the highest-ever recorded was 2.3 million. The projection for this year (2024) is 2.6 million, and the Sri Lanka Tourism Board targets 3 million. Personally, I believe we could reach 4 million visitors in the next 3-4 years.

A key driver of this growth is India, the largest and fastest-growing economy in the world. With 50 million Indians traveling abroad annually, even attracting 1-2 million Indian tourists would be a game-changer for Sri Lanka. Currently, 400,000 Indian tourists visit Sri Lanka, but this number is set to rise.

To put things into perspective, Bali, an island smaller than Sri Lanka, welcomes 6-8 million tourists annually, while we are only at 2 million. There’s huge untapped potential, and if we can push arrivals to 4-5 million, it would be a major boost for the industry.

Q:Pre-bookings were opened last month. How has the response been so far?

Singhawansa: The response has been positive so far, largely due to the recognition of the Cinnamon brand. we are seeing a steady flow of bookings, which we expect to pick up quickly once the hotel opens. While Kandy is a year-round destination, we anticipate a slight dip in occupancy during May and June due to the monsoon season. However, we expect the numbers to rise significantly in July and August, as the peak season kicks in.

Overall, the feedback has been good, and we are receiving positive energy from all our partners. We plan to begin familiarization tours soon, and once those are underway, bookings will increase. The optimism and eagerness from our partners have been really encouraging.

Q:What is your final pitch for Kandy-Myst by Cinnamon?

Singhawansa: We are extremely excited about this project. We’ve been waiting for so long, and now it’s finally here. We can’t wait to open the doors and welcome everyone to this brand-new property. We believe that the perception of Kandy as a destination will change with the introduction of this hotel. Our goal is to elevate Kandy to a more modern, contemporary destination, rather than sticking with the old traditional image. Early feedback from visitors has been very positive, and we are confident about the future of the project. 

Silva: From our side, as a company with roots in Kandy, we are particularly proud of this project. We started in Kandy and have since expanded island wide, with our head office still in Kandy. This project is a significant milestone for us, and we are thrilled that we could take on such a large-scale investment in our home town. We are also excited about the impact on the local community, particularly the job creation. The teams have worked tirelessly, and there’s so much enthusiasm to see this project come to life. Katugasthota is part of a larger development corridor for Kandy, and we are the first to undertake such a large project in this area. It’s exciting to think about how Kandy will transform with this addition.

We are very proud of this achievement. Hotel and tourism projects have a big multiplier effect on the community and the economy. We believe this project will drive Kandy’s economy to new heights, both directly and indirectly, and the workforce will greatly benefit as well.

Singhawansa: It’s definitely something we are proud of.

Kosmos Skybar

Terra Lounge