Trans Asia holds back refurbishment

The branding of Trans Asia as a Cinnamon Hotel, which was postponed will be reviewed once tourist arrivals return to previous levels, according to the management of the hotel. Its parent company, John Keells Holdings (JKH) last week denied reports that it was planning to sell the hotel.

The hotel, coming under the Asian Hotels and Properties Limited (AHPL) was to be re-branded under its flagship brand “Cinnamon” in February last year as Cinnamon Lake by the company, but it has been put off for some time, according to Susantha Ratnayake, its Chairman, in his annual statement.

He has said that the escalation of the North-East conflict and the consequent travel advisories issued by some of the major markets had a negative impact on tourism in 2006.

“During this period, tourist arrivals fell by an estimated eight percent, compared to the previous year. As we have said on numerous occasions, an end to hostilities is critical to the future of the leisure industry in Sri Lanka,” he has reiterated.

In 2006 Trans Asia earned a total revenue of Rs. 1billion for the second successive year. “As a result of the refurbishment and the limited room inventory, our room revenue dropped from Rs. 467 million in 2005 to Rs. 361 million in 2006,” he has noted, adding that the refurbishment together with the drop in tourist arrivals also had an impact on occupancy levels which came down to 57 percent for the year as compared with 71 percent in 2005.

The profit last year included an investment property revaluation amounting to Rs. 121 million and the revised Sri Lanka Accounting Standard on depreciation resulted in a depreciation charge of Rs. 40 million more than last year.

The revenue amounted to Rs.139.9 million as compared with Rs.435.8 million in 2005.