Sri Lanka Keells Hotels halves losses

Aug 07, 2009 (LBO) – Sri Lanka’s John Keells Hotels said it had halved losses in the June 2009 quarter to 150 million rupees from a year ago as tourists arrivals slumped with the global recession. But the continuing fall in arrivals, low occupancy levels and increased competition and capacity, could affect their performance in the medium term especially given the relatively high island lease, CT Smith Stockbrokers said.

But the brokers said arrivals in the Maldives are likely to recover next year as the global economy recovers.

John Keells Hotels also said that in June 2009 the company invested 101 million rupees in the Yala Village hotel in the south of the island raising its stake to almost 94 percent.

In July the firm said it invested almost 42 million rupees in Kandy Walk Inn in the central hills raising its stake to 98 percent. Revenue rose 24 percent to 1.2 billion rupees, the company, part of the John Keells conglomerate with resorts in Sri Lanka and the Maldives, said in a stock exchange filing.

The bulk of revenue came from its Maldivian resorts which have been affected by a fall in arrivals as the global economic slowdown reduced foreign holiday travel in key markets