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Revenue was flat, up just 1%. These results were actually better than the prior year June quarter where the property lost Rs26mn.
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The Kingsbury is a Hayleys group subsidiary. Hayley's is controlled by Sri Lankan tycoon Dhammika Perera, considered in some circles as Sri Lanka's richest man.
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The property underwent an extensive refurbishment after Hayleys bought it over from Nahil Wijesuriya. Despite the refurbishment, returns of the property have been lacklustre.
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Performance of the June quarters in 2018 and 2017 were actually worse than 2016 and 2015 where the hotel made profits of Rs39 and Rs54 million respectively in the June quarter. Tourism in the legacy city hotel sector is weakening with new properties such as the Movenpick and Shangri La coming online in Colombo.
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These new properties are much younger than the older 5-star hotels like the Kingsbury (previously Intercontinental), whose original dates of construction were decades ago.
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