EconomyNext – Sri Lanka’s Trans Asia Hotels has joined other hotels in reporting a downturn in December quarter profit as the industry was hit by troubles in key tourist generating markets and the presidential poll campaign.
It said in a stock exchange filing that December 2014 quarter net profit fell 23 percent to 175 million rupees from a year ago with sales down two percent to 793 million rupees.
Quarterly earnings per share were down to 87 cents from 1.14 rupees a year ago.
The hotel, a unit of the John Keells Holdings group, said distribution costs shot up 42 percent to 37 million while net finance income fell 42 percent.
Trans Asia Hotels’ performance in the nine months ended 31st December 2014 wa also weaker, with net profit down 30 percent to 378 million rupees and sales down five percent to just over two billion rupees from the year before.
JKH has said economic volatility in Russia and continuing unrest in Ukraine had a "significant negative impact" on occupancies of both the group’s Maldivian and Sri Lankan resorts in the peak booking periods of November and December.
The campaign for the presidential election held in January 2015 also affected the performance of Sri Lankan resorts.