Monday 5 November 2018

Sri Lanka's Cinnamon Lakeside Hotel revenues, profits slump

ECONOMYNEXT - Trans Asia Hotel Plc, the owner of Cinnamon Lakeside Hotel in Sri Lanka's capital Colombo said profits fell 49 percent from a year earlier to 76.5 million rupees, in the September 2018 quarter, with revenues falling 15 percent.

The firm reported earnings of 38 cents per share in interim accounts filed with the Colombo Stock Exchange.

In the six months to September the hotel reported earnings of 52 cents per share on total profits of 104 million rupees, which were down 53 percent.

Colombo's older 5-star hotels have been hit by the entry of newer properties at both the high and low ends. Properties like Shangri-La have also attracted banquet business, industry analysts say.

Meanwhile price floors in Colombo may also be making it less easy for Colombo to compete with East Asia and new smaller properties outside Colombo.

Revenues fell 15 percent from a year earlier to 723 million rupees in the quarter, with cost of fell 16 percent to 294 million rupees, but gross profits fell 13 percent to 429 million rupees.

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