Carsons is exploring alternate uses for its loss-making Pegasus Reef Hotel, from an urban housing project to up-scale entertainment.
The hotel has been struggling under a string of accumulated losses of about Rs.
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100 mn, laying off staff and scaling back on operations last year.rn
rnIt curtailed operations to about 50 rooms in 2003, with occupancy rates ranging from 45 percent to 80 percent from largely transit and conference passengers.rn
rnThe hotel is tapping into transit travellers and smaller, less sophisticated markets like India to bring in the numbers.rn
rnThe hotel posted a net loss of Rs. 17.38 mn in 2003, down from the Rs.
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22.16 mn loss the year before, following the cost saving measures.
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rn
rnThe hotel also saw intense competition from large players who followed a strong price led marketing strategy.rn
rnldblquote Handicapped without the beach front, a neglected access path, the inability to upgrade, limited marketing channels and with the costs of the staff compensation scheme,