Sri Lanka city hotel lose Rs2.3mn in June quarter

Aug 05, 2011 (LBO) - Hotel Services (Ceylon) PLC, owners of Continental, the oldest 5-star hotel in Sri Lanka's capital Colombo said it lost 2.
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3 million rupees in the June 2011 quarter, though revenues rose 24 percent to 136 million rupees. The new owners have said they planned to expand and upgrade the hotel.

The firm said marketing expenses rose 71 percent to 14.

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8 million rupees and administration expenses rose 60 percent to 61.2 million rupees.

The firm is now a part of Sri Lanka's Hayleys group.

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Its previous owners had complained that state controls on 5-star hotel room rates where pricing freedom was curtailed by coercive taxes were hurting the hotels ability to keep occupancy high.



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The June quarter is a lean period in Sri Lanka in terms of Western European holiday makers but arrivals have rise 39 percent to June 2011, following a 40 percent rise in 2010 after the end of a war in 2009.

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