John Keells Hotels PLC, the resort sector arm of the John Keells group, reported lower revenue and profits for the quarter ended December 2018 (3Q19), mainly due to weak performance from the group’s Maldivian resorts.
John Keells Hotels reported earnings of 13 cents a share or Rs.182.2 million during the period under review compared to 14 cents a share or Rs.203.6 million in earnings reported for the corresponding period last year.
However, the 3Q19 performance is a notable improvement from the previous quarter ended September 30, 2018, where the group reported only Rs.850, 000 profits.
On July 1, 2017, Bentota Beach by Cinnamon was closed by the company for complete re-development and is slated to be opened in November 2019.
Meanwhile, on May 1, 2018, the company also closed its Maldivian resort Hakuraa Huraa for refurbishment.
Also, in June 2018, the company partially closed another Maldivian resort Ellaidhoo Maldives by Cinnamon for refurbishment.
During 3Q19, the group’s Maldivian resort sector performed relatively better compared to the previous two quarters.
The Maldivian resort sector of the group reported Rs.114.1 million in earnings compared to Rs.156.3 million in the same period last year and a net loss of Rs.92.3 million in the previous quarter.
The revenue was Rs.1.46 billion, slightly below Rs.1.68 billion earned in the corresponding period in 2017.
Meanwhile the group’s Sri Lankan resorts sector reported earnings of Rs.71.7 million compared to Rs.49.4 million a year ago on revenue of Rs.1.39 billion, slightly up from Rs.1.26 billion.
The group’s top line fell slightly by 3.0 percent to Rs.2.85 billion.
The group operates seven hotels and 864 guest rooms in Sri Lanka and three resorts and 340 guest rooms in the Maldives.
The refurbishment work may slightly increase the room inventory of both destinations once completed.
The group’s nine months results are still in red as the company lost 5 cents a share or Rs.79.9 million on revenue of Rs.7.4 billion, down 6.0 percent from a year ago.
As at December 31, 2018, John Keells Holdings PLC held 80.32 percent stake in John Keells Hotels, while the Employees’ Provident Fund held another 5.39 percent stake being the second largest shareholder in the company. The company’s share closed 10 cents lower at Rs.7.50 yesterday giving a market capitalization of just under Rs.11 billion to the company.