The loss came despite the hotel's revenue rising 25 percent to 333 million rupees, amid a tourism boom.
But the firm has large foreign exchange loans. This quarter it reported a foreign exchange loss of 36 million rupees - a little lower than the net loss - as operating expenses and finance costs also increased.
In the last September quarter it posted proft with a forex gain of 78 million rupees.
The firm is planning a debt to equity swap. Galadari hotel was founded by the Dubai-based business group of the same name. A part of the stock was recently transferred to a Dubai government controlled investment fund.
A debt to equity swap is on the cards to strengthen its balance sheet.