John Keells sells its Kandy 'Cinnamon Citadel' hotel to the Dadigama Group of Companies

John Keells Hotels PLC, a subsidiary of John Keells Holdings, has entered into a binding agreement to sell its controlling stake in the Cinnamon Citadel Hotel in Kandy to Lavendisch Leisure, the hospitality arm of the Dadigama Group. According to a corporate disclosure made to the Colombo Stock Exchange on March 12 and 13, 2026, the value of this transaction has been officially announced as approximately LKR 2.777 billion.

Through this transaction, 98.39% of the issued share capital of Kandy Walk Inn Limited, which owns Cinnamon Citadel, will be transferred to the new buyers, and the acquisition process is expected to be completed by March 31, 2026. This decision aligns with John Keells' new business strategy of focusing on management rather than hotel ownership, and accordingly, they will focus more on the newly launched 'Kandy Mist by Cinnamon' project, in which they hold a 40% ownership. However, according to this new agreement, the management of the hotel will continue under the Cinnamon Hotels and Resorts network for at least the next twelve months.

The acquisition of Cinnamon Citadel Hotel, situated in a picturesque environment by the Mahaweli River and close to Kandy's historical sites, is considered a significant milestone for Lavendisch Leisure in expanding its hospitality network. Lavendisch Leisure, part of the Dadigama Group, which has been actively involved in Sri Lanka's hospitality sector since around 2005, is further expanding its investments with the aim of building a network of luxury hotels covering the coastal, wildlife, and historical regions of Sri Lanka.

Even before this latest acquisition, Lavendisch Leisure owned several high-end hotels and resorts spread across the island, including Grand Tamarind Lake, Miridiya Lake Resort, Lavendisch Wild Safaris, and Lavendisch Okrin. Additionally, several of their star-class hotel projects are successfully operating in areas such as Unawatuna, Hanwella, Dambulla, Sigiriya, Kataragama, Anuradhapura, and Habarana.

Going beyond local boundaries, Lavendisch Leisure is also engaged in international investments. In 2024, the company acquired the historically significant Cathedral Quarter Hotel in Derby, United Kingdom, marking their second UK hotel acquisition. Concurrently, several new projects such as Lavendisch Tamarind Lifestyle, Lavendisch Beach Resort, Lavendisch Winrich Leela, and the ultra-luxury Lavendisch Wild Habarana are slated to open for tourists in the future.