Sri Lanka Browns Hotels & Resorts ties up with Starwood Hotels & Resorts

Nov 05, 2014 (LBO)-Sri Lanka’s Browns Hotel and Resorts private limited, a fully owned subsidiary of Browns Investments Plc recently signed a definitive agreements with Starwood Hotels & Resorts which will give Starwood the management rights to five-star Sheraton Kosgoda Turtle Beach Resort, owned by Browns Hotels and Resorts.

The 172 room hotel is set open next year located in Kosgoda, the Southern Coast of Sri Lanka.

“We believe Sri Lanka has the potential to become a preferred tourist destination for the high-end leisure traveler and are very excited to partner with Browns Hotels and Resorts to grow the Sheraton brand in this exotic location.” said Dilip Puri, Managing Director - India and Regional Vice President - South Asia, Starwood Hotels and Resorts.

Starwood Hotels and Resorts Worldwide, is a hotel and Leisure Company with nearly 1,200 properties in 100 countries, and 181,400 employees at it owned and managed properties.

“We are more than pleased to be working with Starwood Hotels and Resorts on this property,” said Rimoe Saldin, Managing Director/ Chief Executive Officer, Browns Investments PLC.

“Sheraton Kosgoda Turtle Beach Resort will add to Browns Hotels and Resorts’ already growing portfolio of luxurious properties in Sri Lanka,”

“Our presence in the leisure sector is steadily growing and will soon lead us to be one of the largest hotel operators in Sri Lanka.”

The designing of the hotel has been handled by architectural firm in Thailand and construction by Sierra Construction Limited which follows an eco-friendly concept modeled against energy saving and organic initiatives.

Adjacent to a turtle hatchery, the resort will feature all its rooms with a beautiful view of the ocean, and will be equipped with the latest features.

Browns Hotels and Resorts’ properties currently in operation include: Eden Resort & Spa, Dickwella Resort & Spa and Green Paradise.

The Company also has plans on the horizon, with new properties planned for in Beruwela, Pasikuda and the Maldives.

Expolanka earnings dip

Ceylon Finance Today: Expolanka Holdings PLC recorded a revenue ofRs 25,305 million, down 9.83% from a year ago, and a PAT of Rs 352 million, down 54.35% from a year ago, for the first six months of the financial year 2014/15. For the second quarter of the same financial year, the Group posted a revenue of Rs 12,917 million and a net profit of Rs 158 million. The recorded Net Profit attributable to Equity holders of the Group was Rs 134 million in comparison to the Rs 342 million recorded during the corresponding period last year. During the said quarter, the drop in growth has been mainly due to international market pressure and heavy strategic investments in key areas of the core business freight and logistics. Hanif Yusoof, CEO/Group Director, Expolanka Holdings PLC said, "We focused our efforts on adopting a solution to integrate Freight and Logistics services to meet supply chain demands with a more strategic focus on customer needs. To this end we invested heavily in warehousing, logistics, inland transport operations and fresh talent."

He added, "We are positive that the changes will contribute to sustainable growth and profitability in the future."

The Group's Freight and Logistics sector posted a year to date revenue of
Rs 18,103 million, recording a drop in net profit of 40%.

The North American trade lane recorded a volume contraction mainly driven by harsh weather conditions experienced in the region. Excess demand for carrier space across markets caused a yield contraction contributing to the overall drop. The increase in the terminal handling charges affected the margins of Sea Freight in Sri Lanka.

Despite the volume growth, the Indian market has recorded a drop in yields due to market pressure. However, the group succeeded in containing excessive cost in India. Cost increase in Air Freight due to heavy demand caused a yield contraction in the Sri Lankan market.

Nevertheless, the growth in trade volume across Europe and the growth in the Intra-Asia region bodes well for the future prospects of the sector. Indonesia performed exceptionally well while the performance in China revealed a healthy growth.

Travel and Leisure sector recorded a year to date revenue of Rs 1,244 million with an increase of 9% in comparison to the corresponding period of last year. The net profit of the sector grew by 10%.

International Trading & Manufacturing sector recorded a year to date revenue of Rs 5,526 million whilst posting a net profit drop of 29%.

The tea subsector was negatively affected by the continued unrest in the Middle East which is the largest market for business and this has considerably impacted the sector financials. The company is currently adopting a low risk strategy given the current context in these markets.

This sector is currently under review for restructuring as well as possible divestments of underperforming businesses.

Hanif Yusoof further revealed, "In view of the ongoing strategic integration of freight and logistics services, as well as the planned restructure of several businesses in the International Trading and Manufacturing sector we expect a positive shift."

In conclusion he said, "In the current business year, we will concentrate on business integration and long-term stability. These will be supported by the measures that have already been taken in the past months such as the group restructure, more stringent cost management and process optimization in working capital."
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