Aitken Spence Hotels cuts Sri Lanka losses, regional net up

Feb 12, 2008 (LBO) – Aitken Spence Hotels has boosted net profits by 78 percent in the December quarter and slashed its Sri Lanka losses in the first nine months of the current financial year, its latest results show. Pre-tax losses in Sri Lanka fell to 195.6 million rupees from 285.7 million rupees in the 9-months to December and 71 million rupees in other incomes trimmed losses further to 120.1 million rupees.

"Our Sri Lankan properties have done well, including Kandalama and Ahungalle," Aitken Spence Hotels chief Malin Hapugoda said.

"The losses come from 181 million in interest we have to pay on borrowings taken to refurbish Ahungalle and Kandalama."

Heritance Ahungalle, a beach property, had cost 1.2 billion rupees to refurbish and Kandalama, a property that is nestled on a hillock inside a forested area, 600 million rupees, Hapugoda said.

As a result depreciation charges were also higher.

The 71 million rupees in other income listed under its Sri Lanka operations are from a management company domiciled in the island which also draws fees from abroad. Other income more than tripled from 20 million over the previous nine months.

Aitken Spence leisure operations elsewhere in South Asi