The Cinnamon Hotels website has removed references to Cinnamon White, a boutique brand the group first mentioned two years ago.
"We have looked at various models, and for the moment, we will continue to focus on our flagship Cinnamon portfolio," Deputy Chairman Krishan Balendra said.
Sri Lanka's Prime Minister Ranil Wickremesinghe said boutique hotels would be a key segment in the future for Sri Lanka's tourism industry in attracting high paying tourists.
John Keells said it also planned to expand its Cinnamon Red 3-star 'lean-luxury' brand after opening the first such hotel in Colombo in 2016.
Balendra this week said that the group would evaluate the possibility of continuing with this strategy.
Cinnamon owns 10 hotels in Sri Lanka, one of which, the Bentota Beach Hotel is being demolished and rebuilt.
It is building two more; the Cinnamon Life as part of a mixed use project, and a hotel in Nuwara Eliya.
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