Spence hotels, despite troubled national arrival statistics, do well in 1stQ 2013/2014
View(s):The opening of Heritance Negombo (formerly Browns Beach Hotel) by Aitken Spence Hotels Holdings (ASHH) has been delayed until 2014 against the previously planned opening in winter 2013, according to a report by John Keells (JK) Stock Brokers Ltd.
It said the property would add a further 150 rooms to the group which “coupled with a further 90 rooms currently under construction at ‘The Sands’ should support revenue uplift in 2015”.
JK’s August broking report also reflected concerns over a trend in declining occupancy rates in Sri Lanka with higher arrivals not translated into higher occupancy rates particularly in the 4-5 star category.
In the meantime, according to other stock market analysts, ASHH reported good post tax profits for the quarter ending June 2013 compared to its much bigger domestic tourism competitor, Keells Hotels Ltd (KHL).
ASHH owns and manages properties in Sri Lanka (604 rooms) Maldives (610 rooms), India and Oman 785 (rooms). KHL owns 994 rooms (Sri Lankan resorts) and 336 (Maldives) while city hotels – Cinnamon Grand and Cinnamon Lakeside -do not come under the KHL umbrella.
Both companies run, separately, the largest hotel chains in the country while having a strong foothold in the Maldives.
ASHH reported first quarter 2013/14 revenue at Rs 2.4 billion against Rs 2.2 billion in the previous year’s quarter while KHL also saw revenue rise to Rs 2.1 billion from Rs.1.7 billion earlier, the analysts said.
While ASHH post tax profit rose by 52 per cent to Rs. 433,850 from Rs 285,138 earlier, KHL reported a loss of Rs 105,730 against a profit of Rs 39,555 in first quarter 2012/13.
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