ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

chairman’s statementPASSIONASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /138The year 2012 was an eventful one for AsianHotels & Properties PLC (AHPPLC). In itsiconic role as the front runner in Sri Lanka’sleisure sector, your Company continued toreshape the industry landscape in the yearunder review. Hence it is with pleasure thatI present to you the Annual Report andStatement of Accounts of your Company forthe year ended 31st March 2013.The year 2012 was a momentous one forglobal tourism with the industry reaching ahistorical milestone, despite a relative weakglobal economic. As indicated by the WorldTourism Barometer, international touristarrivals surpassed one billion, translating intoa 4 per cent growth compared to the previousyear.Sri Lanka’s tourism industry crossed the onemillion tourist arrivals mark,ending the yearwith arrivals of 1,005,605 for the calendaryear 2012. The predominant contributors toarrivals were the Western European touristswho made up 37 per cent of the total,amounting to 373,063 arrivals. South Asiantravellers were the second largest contributorsaccounting for 25 per cent, an equivalentof 247,559 visitors to the island. Industryearnings also reached an all-time high ofUSD 1.039 Billion, an increase of 25 percent compared to the previous year. Theseencouraging signs are a testament to thecountry’s growing popularity as a high profilehospitality destination replete with worldclassfacilities capable of attracting the mostdiscerning international travellers.Performance Overview“Passion”, the theme of this year’s AnnualReport reverberated through all that we did in2012. Epitomising the very best in Sri Lanka’sleisure sector, yet again AHPPLC continuedto raise the bar by delivering greater value toboth the Property Development and Hotelsectors.AHPPLC generated revenue of Rs. 7.8 Billionduring the financial year ending 31st March2013, with both PBT and PAT recordinghealthy growth. The PBT for the year underreview was Rs. 3.3 Billion, an increase of26 per cent compared to the previous year.Consequently, PAT also experienced a 24per cent increase to close the year at Rs.3.1Billion. Earnings Per Share (EPS) was Rs.5.63 for the financial year demonstrating agrowth of 16 per cent.Cinnamon Grand ColomboThe Cinnamon Grand Colombo (CGC),AHPPLC’s flagship hotel under the“Cinnamon”brand, continues to retain itsenviable position as the leading hotel in thecountry. It is heartening to witness CGC’sgrowing market share, YOY revenue growth,improving profitability and intensifyingcustomer satisfaction. These parametersform the pillars of our success, and continueto support CGC’s position as the undisputedleader among star class city hotels inColombo.The Hotel’s primary business driver continuedto be the corporate segment followed byleisure and MICE sectors. CGC’s success isportrayed by the 32 per cent premium marketshare enjoyed by the property. Online pollssuggest that a majority of the customersrate CGC as the preferred choice on manypopular travel websites. Available online dataalso indicated customers’ willingness to paya premium price for accommodation andaccess to facilities at the CGC.With occupancy levels of 72 per centthroughout the year, CGC was able toconclude the year with room revenue reachingRs. 2.4 Billion a 28 per cent increase overthat of the previous year. During the year,CGC’s exclusive F&B outlets and numerousBanquet Rooms received the highestnumber of F&B covers among the cityhotels. Correspondingly, restaurant revenueincreased by 14 per cent during the year andexceeded the Rs. 1 Billion milestone, whileBanquet revenue grew by 19 per cent. It isnoteworthy that growth in all F&B revenuestreams resulted in a 16 per cent growth intotal F&B revenue during the year.Cinnamon Lakeside ColomboIn the year under review,Cinnamon LakesideColombo (CLC) witnessed an increase in theleisure customer segment with a year on yeargrowth of 32 per cent, enabling the hotel tomaintain a consistent occupancy rate of 60per cent throughout the year. CLC recordedtotal revenue of Rs. 2.8 Billion during the yearunder review, a 20 per cent increase over thatof the previous year. PBT increased by 63 percent to reach Rs. 1.2 Billion which included afair value gain on investment property of Rs.289 Million. F&B revenue also grew by 15 percent to reach Rs. 1.2 Billion as against Rs. 1.0Billion recorded in 2011/12.CLC was also the recipient of a number ofawards and accolades during the year. Keyamong them was the recognition received asthe “Best Luxury Hotel in Sri Lanka” awardedat the “Business Destinations Travel awards2012”.Property DevelopmentAs anticipated all property developmentprojects were completed as at 31st March