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Thursday Nov 14, 2024
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Despite being in refurbishment mode over most of 2017, Hotel Developers (Lanka) Plc, the holding company of Hilton Colombo, has posted impressive financial performance.
Revenue rose by a healthy 20% to cross the Rs. 3 billion mark whilst gross profit rose from Rs. 2 billion to Rs. 2.46 billion.
Pre-tax profit remained unchanged at Rs. 173 million. However, post-tax profit rose by 83% to Rs. 258 million from Rs. 141 million in 2016 owing to Rs. 102.6 million deferred tax
income. This is after the company under the new Inland Revenue Act set off 100% of the taxable profit against accumulated past losses which is around Rs. 9.7 billion.
Hilton Colombo’s occupancy in 2017 was 57%, up from 47% a year earlier. Room revenue rose to Rs. 1.3 billion from Rs. 1.1 billion, F&B revenue from Rs. 1.3 billion to Rs. 1.6 billion.
Hotel Developers (Lanka) Plc Chairman Krishantha Cooray, who described it as an “exemplary achievement”, thanked the enduring commitment of the Hilton Colombo team and the unstinted loyalty of Hilton Honours members and other local and foreign guests who continue to seek out the Hilton brand of excellence and
service.
During the year under review the company ensured strict compliance with industry regulations and good governance practices. The company continues to maintain a strong Balance Sheet coupled with prudent financial management systems and strategic planning.
“The success of our business is linked to the success of our people. Our inspired level of service is emblematic of our dedicated and skilled team of hospitality professionals who consistently exceed guest expectations. Our staff is world-class and can easily compete with the best of the best,” Cooray added.
He said that Hilton was entrenching itself as a brand that was deeply committed to the long-term sustainability of Sri Lanka’s tourism industry while setting service standards benchmarks for the rest of the industry to emulate.
As the first international hotel brand to set up operations in Sri Lanka 30 years ago, Hilton Colombo stayed the course during the ensuing three-decade strife in the island, standing as a beacon of comfort for tourists and local guests throughout – the presence of a Hilton brand in the country offering them a reassuring promise.
“Over the decades, despite growing competition, the stellar Hilton brand of service, with the support of loyal Hilton patrons, has helped to sustain and expand market share,” the Chairman emphasised.
Cooray said the property is currently in the throes of a magical transformation that will propel Hilton Colombo to new heights, leagues ahead of the latest international hotel brands entering Sri Lanka.
“We are optimistic that recent measures by the Government to put the national economy back on a growth trajectory will serve the hospitality and tourism sectors well.
Hilton Colombo’s refurbishment and renewed product in line with global Hilton brand standards will be the mainstay of Sri Lanka’s bouquet of leisure properties. The completion of the first phase of refurbishment has already augmented our iconic service platform and reiterated that the company has delivered on its promise of an elevated leisure offering to its loyal clientele.
“The final stage of refurbishment will commence in 2018 and boost profitability with extensive room refurbishment and new food and beverage offerings to enhance the portfolio of the hotel. I am confident that this strategic investment will further entrench Hilton Colombo as the obvious choice amongst Sri Lanka’s finest hotels while supporting the national vision for the industry,” Chairman Cooray added.
