John Keells Hotels has announced the sale of a 98.39 percent stake in Kandy Walk Inn Limited, the owning company of the Cinnamon Citadel hotel, to Lavendish Leisure, part of the Dedigama Group. The transaction is valued at 2.777 billion rupees.
The company stated that this divestment aligns with its asset-light strategy in the hotel sector and coincides with the launch of Kandy Myst by Cinnamon. John Keells Hotels holds a 40% stake in this new operating entity.
The transaction is anticipated to be finalized by March 31, as per the company’s filing with the stock exchange.
Under the terms of the agreement, John Keells Hotels will continue its current branding and management for a minimum of one year. The proceeds from this sale will be reinvested into modernizing and enhancing the company’s remaining hospitality assets, according to John Keells Holdings.
(Colombo/March 13, 2026)
