3 February 2020 09:01 am
The Kingsbury PLC recorded losses for the quarter ended December 31, 2019 (3Q20) as the city hotel controlled by Hayleys group became a direct target of the deadly Easter Sunday attacks, which led to the temporary closure of some of the hotel’s facilities.
The Kingsbury PLC was one of the three city hotels, which came under attack on April 21, 2019 as part of a coordinated strike by the radical Islamist terrorists. The Kingsbury entered into a supplementary agreement with the Board of Investment (BOI) in November last year, to refurbish the hotel, as Easter attacks caused extensive damages
to its restaurants.
Tourist arrivals also dried-up following Easter attacks and are still struggling to recover to pre-attack levels.
However, December arrivals showed some fast recovery in visitor numbers, but hospitality sector is now bracing for a new challenge from the Coronavirus outbreak.
The arrivals in and out from many provinces in China, where the virus was originally traced, have virtually been shut down and it could deal a severe blow to the global outbound tourism industry.
The Hotel Association of Sri Lanka (THASL) last week said comprehensive guidelines have been circulated among all its member hotels and hygienic standards enhanced to ensure fullest possible protection to staff and patrons, to prevent the spread of the virus.
The Kingsbury revenue for the quarter under review fell 30 percent year-on-year (YoY) to Rs.541.2 million.
At the operating level, The Kingsbury made a loss of Rs.92.7 million from a profit of Rs.32.5 million in the year earlier period. The company reported a loss of 45 cents a share or Rs.108.9 million for the quarter under review compared to earnings of 26 cents a share or Rs.62.4 million profit in the corresponding period last year.
For the nine months ended December 31, 2019, the company reported a loss of Rs.1.42 a share or Rs.342.6 million compared to earnings of 40 cents a share or Rs.96.9 million in the year earlier period. Sales for the nine months stood at Rs.1.3 billion, down 42 percent YoY.
Hayleys PLC controls just under 60 percent stake in The Kingsbury PLC while the Employees’ Provident Fund has 10.56 percent being the hotel company’s second largest shareholder.