Sri Lanka’s John Keells Hotels weighed down by closure, Maldives resorts in Dec
ECONOMYNEXT – John Keells Hotels, which has properties in Sri Lanka and the Maldives, said profits fell 48 percent from a year ago to 203.5 million rupees in the peak December 2017 quarter amid sliding margins and a closure of hotels for refurbishment.
The company, a unit of John Keells Holdings, reported earnings of 14 cents a in the quarter. In the nine months to end December 2017 earnings amounted to 05 cents a on total profits of 73.3 million rupees, down 91 percent from a year ago.
Revenue fell five percent from a year ago to 2.9 billion rupees during the quarter, cost of sales increased 3 percent to one billion rupees contracted gross profits by 9 percent to 1.8 billion rupees, interim accounts filed with the stock exchange showed.
It included 250 million rupees for depreciation and a voluntary retirement scheme coming from the closure of the 159-key Bentota Beach Hotels for redevelopment in June 2017 for an estimated capital cost of 4.8 billion rupees.
Despite improving room rates and occupancies the Sri Lanka resorts segment saw profits decline due to the closure of Bentota Beach, the parent John Keells Holdings told holders in a stock exchange filing.
Two resorts in the Maldives (Cinnamon Dhonveli and Ellaidhoo Maldives by Cinnamon) were partially closed for redevelopment and refurbishment for much of the year. Both properties became fully operational by the end of October 2017.