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The company said in a stock exchange filing that its net loss rose 137 percent to 114 million rupees from a year ago with gross revenue down eight percent to 1.3 billion rupees.
The firm, part of the Aitken Spence group, owns or manages nine hotels in Sri Lanka, five resorts in the Maldive Islands, five hotels in India and five hotels in Oman.
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Its South Asian properties account for the bulk of revenues.
Analysts said the company was affected by the downturn in tourist arrivals in both key markets in Sri Lanka and the Maldives.
CT Smith Stockbrokers said in a recent report that the Maldives is considered the most lucrative resorts for Sri Lankan hotel companies.
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However, their resort to cutting prices to entice tourists after a sharp fall in occupancy levels has eroded earnings.
Bartleet Mallory Stockbrokers said in a report as a result of Aitken Spence Hotel Holdings' regional diversification, the contribution from non-Sri Lankan operations amounts to more than 80 percent o