The John Keels Hotels group has divested the head lease of Alidhoo Island in the Maldives and as consideration has received the head lease of Dhonveli Island for a period of 18 years.

The group previously had a sublease of Dhonveli until 2021.

The Company says even though the transaction will not result in a capital gain or loss in the profit and loss statement of the group, it will have a positive impact on the profitability of the group going forward.

According to the JKH, the Alidhoo Island was a loss making unit of the group while Dhonveli Island which is just a 15 minutes speed boat drive from the capital Male is a profitable unit.

JKH is in the process of expanding its leisure sector operations both here and in Maldives in view of the potential growth in the tourism sector.

Leisure sector during the year 2009 / 2010 financial year has contributed 24% to the JKH group’s revenue with a PAT of Rs. 973 million, a seven fold increase compared to the previous financial year.

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