Sri Lankan Billionaire Nahil Wijesuriya’s family largely owned and controlled Weligama Bay Marriott Resort & Spa had added over 68% revenue amounting to over Rs. 685 million in the first 8 months of Hotel’s operation to the total revenue of the holding company East West Properties group. In the lately released annual report of the East West Properties PLC (EAST) company’s Chairman Nishantha Sooriyaarachchi notes that they are very happy to announce that this was the first financial year that Hotel Income added to the Group Revenue.

“The Group recorded Rs. 1,002 million Revenue which was 90% higher than the last year. Hotel recorded turnover of Rs. 685 million from the first 8 months of hotel operation” Sooriyaarachchi highlights in his review adding that Rs. 317 million was recorded from Rental, Infrastructure, Construction and Trading.

During the financial year under review the Hotel has been successful to maintain average occupancy of 70% from the first year of operation. Further the review highlights that the warehouse and self-storage were successful with continued tenancy, and had high demand for ready mix concrete and unbeaten growth in broadcasting and media sector. The Group has further received Rs. 14 million other Income and Rs. 18.6 million of Finance Income during the Financial Year.

The annual report further outlines that the Group recorded Rs.874 million Loss for the financial year mainly due to Hotel Preoperational expenses of Rs. 139 million, Depreciation cost of Rs. 382 million Deferred Tax Expenses of Rs. 233 million and Finance Cost of Rs. 231 million. Accordingly out of Rs. 231 million, Finance Cost is Rs.161 million for interest expenses for the loans obtained for Hotel construction and exchange loss incurred by the depreciation of the Sri Lanka Rupee against the US Dollar.

“Our future plans will focus on maintaining above 70% average occupancy with a good average room rate from our Weligama Bay Marriott Resort & Spa, also enhancing profitability of our warehouses and self-storage, by providing maximum service to the clients” Sooriyaarachchi notes adding that the group will also expand supply of ready mix concrete by securing a number of new sites and enhance infrastructure facilities of their transmission sites of Peoples Media Network (Pvt) Ltd.

- Reporting by Devendra Francis