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The hotel's revenues had increased 31 percent to 102 million in the year to March and profits had increased 153 percent to 14.5 million rupees.
"Looking at prospects for the future, it is essential that the hotel upgrade its facilities through a refurbishment as well as position it for the renewed interest and resurgence in the tourism industry in Sri Lanka," Pandithage said.
"It is envisaged that the room inventory will be increased to cater to the higher demand for quality rooms in the Kandy district and its environs.
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The hotel now has 28 rooms and 3 suites. The hotel, owned by Sri Lanka's Hayleys group is managed by Jetwing, a leisure group.
Pandithage said a wood gasifier and mini hydro power project has started and 80 percent of all lighting is from energy saving CFL bulbs.
"The hotel continues to position itself as an eco-friendly Hotel, attracting niche markets," Pandithage said in the annual report.
"The Hotel is very popular among Sri Lankans and continues