Feb 07, 2011 (LBO) – Sri Lanka’s Continental Hotel, bought by the Hayleys conglomerate last year, has reduced its losses in the December 2010 quarter which marks the beginning of the peak tourism season, latest results showed. The hotel, the island’s oldest 5-star rated property in the capital Colombo, reduced its loss to 1.8 million rupees from a loss of 22.8 million in the same quarter a year ago, a stock exchange filing said.
Sales almost doubled to 166 million rupees in the December 2010 quarter from the previous year.
In the nine months to December 31, 2010, Continental Hotel’s loss fell to 13 million from 42 million the year before while sales rose 67 percent to 419 million rupees.
Hayleys group bought a 51 percent stake in Continental Hotel in March 2010 and is investing to expand and refurbish the property to cater to an expected influx of tourists after the end of a war.
Colombo hotels are enjoying high occupancy and room rates following the end of the 30-year war in 2009.