Hotel earnings keeps AHOT Property’s 9-months buoyant

Asian Hotels and Properties PLC, owners of the Cinnamon Grand Hotel in Colombo and substantial property assets including residential and commercial space on the hotel grounds, has posted a strong December quarter for the group with attributable profit rising 75% to Rs.184.3 million from Rs.105 million a year earlier.

``The hotel has been doing very well with profits growing almost fourfold from the previous year,’’ a spokesman said. But property segment earnings were down sharply.

This resulted in the group bottom line for the 9-month period ended December 31, 2009 being down 6% to Rs.337.1 million from Rs.357.3 million a year earlier.

The company’s (as opposed to the group) income statement reveals that the December quarter had seen the bottom line grow 70% to Rs.138.1 million while the 9-month cumulative result was up 6% to Rs.353.8 million.

Segmentally, hotel operations had seen the profit up nearly 400% to Rs.235.6 million while the property development segment saw earnings slump to Rs.101.5 million from Rs.297.7 million a year earlier during the nine months under review.

Asian Hotels and Properties has a stated capital of Rs.3.3 billion, capital reserves of Rs.5.3 billion and revenue reserves of Rs.3.5 billion in its books.

The company’s total assets were running at Rs.16.8 billion as at December 31, 2009 while its total liabilities were Rs.2.3 billion.

Group net assets per share had grown marginally to Rs.55 from Rs.54 a year earlier while the company’s net assets remained flat at Rs.49.

The Asian Hotels share traded at a high of Rs.97 and a low of Rs.25 during the period closing at Rs.94.50 on December 31, 2009. This compared to a trading range of Rs.38.25 to Rs.23.50 closing at Rs.24.75 in the comparative period the previous year.

JKH with 83.80% is the dominant shareholder of the company followed by the Life Fund of the Sri Lanka Insurance Corporation with 2.28% and Mercantile Investments with 1.68%.

The directors of the company are: Messrs. S.C. Ratnayake, A.D. Gunewardene, J.R.F. Peiris, B.M. Amarasekara, Ivan Samarwickrama, R.J. Karunarajah, S. Rajendra, A.R. Gunasekara, S.K.G. Senanayake and Ms. S.A. Jayasekara.

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