June 6, 2013 (LBO) – Cinnamon Lakeside, a unit of Sri Lanka’s John Keells group said it saw more ’emerging market’ guests in the past year, while facing competition from luxury apartments. The company said in the past year occupancy had risen to a average of 60 percent from 55 percent and room rates had been upped to an average of 135 US dollars from 130.
“During the financial year under review, 40 per cent of our rooms were occupied by guests from emerging markets – a marked increase from the previous year’s composition of
30 per cent,” Chairman Susantha Ratnayake told shareholders in an annual review.
“While we are mindful of the competition posed by the entry of many international brands to Sri Lanka and the availability of alternate accommodation such as luxury apartments, we are confident that the excellent service associated with the Cinnamon brand and the positioning of the hotel will enable it to overcome these challenges.”
In the March 2013 quarter the firm reported profits of 442 million rupees up 66 percent from a year earlier, partly helped by a 288 million rupees fair value gain on property.
The firm reported earnings of 2.21 rupees per share. In the year