📈 John Keells Hotels to Divest Cinnamon Citadel for Rs. 2.78 Bn

John Keells Hotels PLC has entered into a binding agreement to sell its 98.39% majority stake in Kandy Walk Inn Ltd (KWIL), the owning entity of the Cinnamon Citadel hotel in Kandy, to Lavendish Leisure (part of the Dedigama Group). • Transaction Value: The deal is valued at Rs. 2.777 billion and is expected to be finalized by 31 March 2026. • Strategic Shift: The divestment aligns with the group’s asset-light strategy for its hospitality sector. • Brand Management: Cinnamon Citadel will remain under the Cinnamon Hotels & Resorts brand for a minimum of 12 months before a planned review. • Reinvestment: Proceeds will be utilized to upgrade the existing tourism portfolio, following the recent launch of Kandy Myst by Cinnamon, where the group retains a 40% stake. • Sector Impact: This move reflects ongoing consolidation and capital reallocation within Sri Lanka’s leisure and travel industry to optimize property positioning.