October 29, 2019 (LBO) – Colombo Stock Exchange listed Asian Hotels and Properties (AHPL) reported a modest profit in the quarter ended September 30th. AHPL is the subsidiary of market bellwether John Keells Holdings (JKH) which owns two large city hotels.
Profits in the quarter were down 95% year over year to just Rs10mn, however the company was able to stay in the black as Sri Lanka’s tourism recovery begins to take shape.
Revenue was down 22% year over year, a significant improvement on the revenue decline of 48% in the previous quarter. As the European winter approaches, Sri Lanka will enter its peak season for tourism.
The sequentially improving quarterly results come in the aftermath of the Easter Sunday terror attacks which struck at churches and five star city hotels including the Cinnamon Grand owned by AHPL.
The attacks devastated Sri Lanka’s thriving tourist industry which represents approximately 5% of the country’s GDP. The tourism industry has been recovering since the attacks approximately six months ago.
In a recent interview with global business network CNBC, Deputy Chairman of JKH Gihan Cooray mentioned that the tourism segment of their business is showing signs of a significant recovery.