Asian Hotels and Properties PLC (AHPL), the holding company for the 5-star city hotels and property development operations for John Keells Holdings PLC, posted a net profit of Rs. 338.02 million for the 1stquarter ended June 30, 2017, improving 12 percent Year-on-Year (YoY). Revenue increased 14 percent YoY to Rs. 1.91 billion, while cost of sales increased 9 percent YoY to Rs. 822.20 million. Distribution expenses increased 41 percent YoY to Rs. 83.02 million, while net finance income fell by 38 percent YoY to Rs. 28.48 million from Rs. 45.61 million YoY.
The net assets per share declined to Rs. 51 from Rs. 53 at the start of the financial year. AHPL subsidiary Trans Asia Hotels PLC which manages Cinnamon Lakeside had posted a net profit of Rs. 90.70 million, improving from a net loss of Rs. 32.31 million YoY posted during a year operations were curtailed by renovations. John Keells has been lobbying for the removal of the minimum room rate for hotels in Colombo, which will be legislated during the first quarter of 2018. Nearly 70 percent of tourists coming to Colombo are MICE (Meetings, Incentives, Conferences and Exhibitions) tourists, a market which is attracted to cheaper rates. John Keells Holdings owns 78.56 percent of the shares in AHPL while the Employees’ Provident Fund owns 10.22 percent of the shares. (CW)