Galadari profits up at Rs.286 mln, but room revenue down
Galadari Hotel made profits last year but was also affected by a drop in room revenue to Rs.632.5 million in 2013 compared to the previous year’s figure of Rs.853.5 million due to the lack of any major events happening in Colombo
The city occupancy had dropped by about 10 per cent last year and Galadari Hotel alone had witnessed a dip of about 12 per cent, Galadari Hotel General Manager Sampath Siriwardena said in an interview with the Business Times.
He noted that while the lack of any major events in Colombo had hampered room revenues the Commonwealth forum in the city had not generated the promised results since not all rooms were full since the “numbers never came.”
Compared to 2013 the previous year was relatively better since there were events in the city like the conferences and the international cricket matches that brought in the numbers to Colombo, Mr. Siriwardena explained adding that an improvement on the numbers was expected in 2014.
The Galadari Hotel made gains amounting to Rs.286 million in profit in 2013 after tax compared to losses in 2012 of Rs.861 million, the company stated releasing their financials on Tuesday.
This was achieved through the conversion of the Rs.7.2 billion loan to equity as part of the hotel’s restructuring efforts.
In addition, the management repaid loans to the Treasury amounting to Rs.263.6 million as a part settlement of the long outstanding loan to the government. The statement said the remaining Rs.263.6 million has been repaid in 2014, indicating that this payment would have been made in the first quarter of 2014. A notable factor at the Galadari Hotel is the drop in room revenue blamed on the market situation. This resulted in room revenues slowing down to Rs.632.5 million in 2013 compared to the previous year’s figure of Rs.853.5 million.
The company’s stocks moved up to Rs.8.9 million last year compared to Rs.1.8 million in 2012. In addition, the capital reserves saw a marginal increase from Rs.8.3 million in 2012 to Rs.8.6 million last year. The report states that the company’s stocks in terms of earnings per share had gone up by Rs.0.84.
However, revenue reserves had slipped to Rs.9.3 million compared to Rs.9.5 million in 2012.
But food and beverage revenues increased just marginally to Rs.770 million last year compared to Rs.768 million in 2012. Further, as part of its other income earnings it was found that the tax charges had also dropped to Rs.761, 060 in 2013 as against over Rs.1 million earnings 2012.