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Hotel Loss

Feb 06, 2008 (LBO) – Sri Lanka's John Keells Hotels suffered a loss of 91 million rupees in the December quarter compared with a profit of 79 million rupees in the same period of last year.

The John Keells Hotels PLC share traded flat at 6.75 rupees Wednesday. Revenue for the quarter rose 20 percent to 1.3 billion rupees from just over a billion rupees the year before, according to interim results sent to the Colombo bourse.

The hotel group's cost of sales was also up 55 percent to 500 million during the quarter.

The company, a unit of the John Keells Holding group, said the loss for the nine months was 486 million rupees compared with a 30 million rupee profit last year.

Revenue for the nine months rose 31 percent to 3.1 billion rupees

Sri Lanka's hotel industry has been hit hard by the escalating ethnic conflict which has led to bad publicity and travel warnings in tourist generating markets.

According to segmented results, both the firm's Sri Lankan and Maldivian resorts reported losses.

Although revenue from its Maldivian resorts rose to 2.5 billion rupees from 1.7 billion rupees, they made a net loss of 289 million rupees compared with a 250 milli

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