John Keells Hotels PLC has lost substantially both in Sri Lanka and the Maldives in the first quarter of the current financial year ended June 30, 2008 when a group loss of Rs.330.9 million has been posted, up from a loss of Rs.217 million during the comparative period the previous year.

The after-tax loss of the Sri Lanka operation during the quarter under review was marginally down to Rs.108.5 million from a loss of Rs.111.9 million a year earlier. But the Maldives loss has mounted sharply to Rs.222.3 million from Rs.105.1 million.

The June quarter had seen administrative expenses rise 33% to Rs.597.6 million from a year earlier although finance expenses were down 51% to Rs.77.7 million at group level.

At company level a small profit after-tax of Rs.25.4 million has been posted, up from a loss of Rs.9.4 million during the comparative period the previous year.

Analysts noted that the first quarter loss of the Keells Hotels group was higher than the full year loss of Rs.71.1 million in the year ended March 31, 2008.

Keells Hotels has a stated capital of Rs.5.86 billion, up from Rs.3 billion a year earlier following a rights issue and capital reserves of Rs.298.4 million and revenue reserves of Rs.580.3 million. Interest bearing borrowings are running at Rs.3.6 billion, down from Rs.3.9 billion a year earlier.

Net assets per one-rupee share of the Keells Hotels as at June 30, 2008, had grown to Rs.6.17 for the group from Rs.3.58 a year earlier, while for the company net assets per share were up to Rs.5.62 from Rs.2.97.

The group first quarter result translated to a loss per share of 30 cents, down from a loss of 36 cents during the comparative period the previous year while the company had a profit of 2 cents per share against a loss of 2 cents a share a year earlier.

The Keells Hotel share traded at a high of Rs.7.25 and a low of Rs.6.25 during the quarter under review against a trading range of Rs.8.50 to Rs.5.75 during the comparative period the previous year.