The report provides insights into the robust growth of the tourism sector in Sri Lanka, which Forbes magazine ranked among the world’s Top 10 ‘Coolest Countries’ to be visited in 2015.
Gagan Singh, CEO - Business India & Chairperson Sri Lanka Operations, JLL said, “This report is timely and extremely topical.
It explores Sri Lanka’s current status on hotel product offerings in close detail, and also examines various key aspects that are playing a role in shaping the country’s burgeoning hospitality industry.”
Sri Lanka is on the brink of a strong reform agenda. For its hospitality industry, building on the strong infrastructure base, establishing a structured investor framework and providing a focus and investment into the promotion and development of the tourism sector will be the immediate needs.
Equally critical will be a clear positioning for ‘Brand Sri Lanka’, which will be the key to driving the long-term sustainability of the industry.”
Mandeep Lamba, Managing Director – JLL Hotels & Hospitality said, “We are massively invested into Sri Lanka’s hospitality market, which boasts of ongoing double-digit growth in tourist arrivals year-on-year.
The country registered an average Compounded Annual Growth rate of 16% over the past five years, and is now working towards a target of 2.2 million tourist arrivals in 2016.
The business potential is immense, and JLL has taken its customary leadership position in harnessing it.”
Key Report Findings:
• Sri Lanka had close to 1.8 million foreign tourist arrivals in 2015, demonstrating a growth of 17.8% over the previous year.
• Sri Lanka has approximately 28,000 rooms, of which over 60% fall in the informal segment
• There is a planned hotel supply of close to 8,000 rooms, largely in Colombo and along the South-west coast
• Colombo has seen an increase in hotel supply in the 3 and 4 star segments lead to a slight decline in overall occupancy levels, while the city has also seen a slight decline in Average Room Rates
• While occupancy levels over the past three years have seen a steady increase, the South-west coast has seen a reduction in room rates during the year due to increased competition, with a substantial increase in room inventory along this stretch
• There is a gradual shift in tourist profile, with arrivals from the traditional European source markets declining, while Asian countries have increased their market share - led by China and India.
JLL’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centres; mixed-use developments and other hospitality properties.
The firm’s more than 320 dedicated hotel and hospitality expert’s partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset.
In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totalling more than US $48 billion, while also completing approximately 4,500 advisory, valuation and asset management assignments.
The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality, download the Hotels & Hospitality Group app for iOS and Android, or view our e-magazine The Hotel Investor, available for iPad.
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate.
With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.
On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014.
Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management.
JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
For further information, visit www.jll.com
JLL has over 50 years of experience in Asia Pacific, with over 31,100 employees operating in 83 offices in 16 countries across the region.
The firm was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards and won ‘Best Property Consultancy’ in seven Asia Pacific countries at the International Property Awards Asia Pacific 2014.
For further information, visit www.jll.com/asiapacific
Photo Caption ( from left ) :
12.) Sunil Subramanian, Head – Transactions, Roopa George - Assistant Vice President, Hotels and Hospitality Group, Gagan Singh, CEO – Business (India) & Chairperson – Sri Lanka Operations and Mandeep Lamba, Managing Director – JLL Hotels & Hospitality Group
