The group acquired two islands, Aarah Island in Raa Atoll in 2014 and Raa Fushi in Noonu Atoll in 2015 for the basis of lease, which will brings the total number of islands held by Aitken Spence in the atolls to six.

“We will commence the construction of two new resort properties on these two islands, Aarah in Raa Atoll and Raafushi in Noonu Atoll during the year ahead,” J M Brito, Managing Director of Aitken Spence told shareholders in the annual report 2014/2015.

“Our strategy of being a regional player once again paid dividends and the properties in Maldives and Oman performed remarkably, with the Maldives properties being the highest contributor to the Group, accounting for over 70% of our profitability,”

“We continued to be the largest single foreign operator in the Maldives in terms of resort capacity.”

The group already operates five resorts in four islands in the Maldives with 630 rooms and 1,200 beds, the company said.

The group’s led hotel brand “Adaaran” established in Maldives has continued to be the highest contributor to the group’s profitability in 2014 /15 contributing more than 70 percent to profits during the year.

Revenues from these properties increased by 3.3 percent to 10 billion rupees during the year. Chinese visitors continued to make up the highest share of visitors to the Adaaran properties, the company said.

Aitken Spence said it plans to build a 160 roomed resort on Aarah in Raa Atoll where design work is ongoing and construction expected to commence this year. – LBO

Source: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=126562

Here General Manager of the hotel Roshanlal Perera and members of the Welfare Society handing over the keys of the house to Rasalingam.

November 3 , 2014 will be a memorable day in the history of Heritance Tea Factory. It is the day the dream of the Staff Welfare Society of Heritance Tea Factory, providing a home for one of its employees, K. Rasalingham, came true.

Rasalingham, his wife and their eight- year old daughter moved into the brand new house built for them by the employees of the hotel amid the blessings of the hotel’s management, staff and, the members of the Staff Welfare Society.

Source: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=120254

Susith Jayawickrema, Managing Director & Tilak Gunawardana, Vice President, Finance accepting the award & certification

Aitken Spence Hotel Holdings PLC emerged victorious once again walking away with the Gold Award in the Hospitality Sector category at the prestigious of Chartered Accountants Annual Report Awards.

The golden jubilee of the annual report awards was held recently at the Nelum Pokuna Mahinda Rajapaksa Theatre. The competition which covers 22 sectors from small business categories such as NGOs, clubs, associations to large conglomerates had a total of 130 organisations submit their annual reports for the coveted awards this year.

The annual competition formulated to encourage transparency and accountability in financial reporting in the corporate sector recognizes companies which have demonstrated excellence in transparency, accountability and good governance via their annual reports. The evaluations were conducted under a stringent three stage system where the shortlisted reports were subjected to an industry expert panel review; the reports selected for the final stage were evaluated by a final panel of judge’s chaired the Central Bank Governor.

Sustainability, transparency and accountability are stringently practiced at Aitken Spence Hotels and winning this accolade provides a clear indication on its commitment to report on its economic, social and environmental impacts. “We see corporate sustainability as part of our core business strategy and ensure that our commitment is filtered down to every operation. This commendation reflects Aitken Spence Hotels’ track record of commitment to corporate accountability and championing sustainable tourism by producing industry best practices. We will continue to stay committed to delivering exceptional sustainable experiences to our guests whilst continuing to our stringent practices in corporate governance”, said Susith Jayawickrama, Managing Director, Aitken Spence Hotels.

source: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=117629

D. Stasshani T. Jayawardena has been appointed as a Director to the Board of Aitken Spence Hotel Holdings Plc with effect from 1 July 2014.
She already serves on the Aitken Spence Plc Board since 1 December 2013. She is a graduate of St. James and Lucie Clayton College and Keele University in UK. She joined Aitken Spence Plc in January 2010 gaining experience in several of its key strategic business units as well as with the parent company.

Jayawrdena is a member of the Young Leaders Steering Committee and the Banking, Finance and Capital Markets Steering Committee of the Ceylon Chamber of Commerce. She is a Director of the Board of Splendor Media and a member of the EY Next Generation Club. In 2003, she was the youngest intern to work under the US Senator Hillary Rodham Clinton and the former US President Bill Clinton. Jayawardena currently leads a team of young professionals that is endeavouring to develop a strategic development plan for future growth of Aitken Spence Plc. Her main competencies include strategic planning, branding and marketing.

Source: http://www.ft.lk/2014/07/03/stasshani-joins-spence-hotel-holdings-board/

Aitken Spence Hotel Holdings PLC, the hotel owning and management unit of the diversified Aitken Spence group saw its net profit for the year ended March 31, 2014 (FY13/14) rising 31 percent year-on-year (YoY) to Rs.2.3 billion, supported by better performance of hotels both in Sri Lanka and the South Asian region.

The bottom line of the company was also boosted by another income of Rs.391 million, generating from insurance claims on a fire that destroyed 16 water villas i n a resort operated by Aitken Spence in the Maldives.

The revenue for the year stood at Rs.12.9 billion, up from Rs.12 billion in the previous year. The operational profit for the year rose 26 percent YoY to Rs.4 billion.

The firm also recorded a net finance income of Rs.77 million against a net finance expense of Rs.18 million in the previous year.

The earnings per share for the year improved to Rs.6.92 from Rs.5.26.

The Sri Lankan resort hotels of the firm reported a revenue of Rs.3.3 billion for the year under review, against a revenue of Rs.2.8 billion in the previous year. The segment reported a pre-tax profit of Rs.1.35 billion, up from Rs.1 billion.

The firm’s South Asian hotel operations generated a revenue of Rs.9.7 billion, against a revenue of Rs.9.3 billion in the previous year. The segment’s pre-tax profit also rose to Rs.2.7 billion from Rs.2.2 billion.

Aitken Spence Hotels owns and manages six resort hotels in the Maldives. The company also manages four hotel properties in India and a couple in Oman.

Source: http://epaper.dailymirror.lk/epaper/viewer.aspx#

During the period, 2013/2014 Aitken Spence Hotel Holdings PLC, the Aitken Spence Group’s hotel owning strategic business unit, entered into a shareholders’ agreement with RIU Hotels of Spain to build a 500-room luxury resort in Ahungalla, costing approximately USD 100 million. The construction of the hotel is expected to commence during the second half of the financial year 2014/15, a press release said.

It adds: ‘Annual revenue for the Maritime Cargo Logistics sector increased 15.3% to Rs. 7.3 billion whilst profits before tax for the sector increase by 26% to Rs. 709 million. Entry into a strategic partnership in Fiji for port management services through the acquisition of a 51% shareholding in Ports Terminal Ltd – the first- ever public-private partnership overseas by a Sri Lankan company recorded to date, was a highlight for the year.

‘Blue chip conglomerate Aitken Spence PLC reported its annual unaudited financial results 2013/14 to the Colombo Stock Exchange on Monday, reporting profit attributable to shareholders of Rs 3.7 billion, an increase of 11.7% over the previous year’s profit of Rs 3.3 billion. Profit before tax was Rs 5.4 billion and profit after tax was Rs.4.5, recording growth of 7.6% and 5.5% respectively. The diversified Group’s annual revenue declined marginally to Rs. 36.6 billion whilst earnings per share improved by 11.7% to Rs. 9.04 for the financial year.

The Group’s bottom line was driven primarily by the Tourism sector. Sri Lanka welcomed over 1.27 million tourists during the year 2013, with a target of 1.5 million set for 2014.The boom in the tourism industry was reflected in the Group’s performance with the revenue of the Tourism sector for the financial year growing by 9.4 % to Rs. 16.9 billion and profit before tax surging by 26.3 % to Rs. 4.4 billion.

Services sector reported a revenue of Rs. 819.6 million for the financial year under consideration which was a growth of 11.5 %, and a profit before tax of Rs 180.5 million, a growth of 10.2% compared to the previous year. Strategic Investments sector reported a year on year decrease of 16.1% in revenue to Rs. 15.3 billion, while the profit before tax dropped by 81.1% to Rs. 159.8 million for the financial year primarily due to the Aitken Spence power plants in Matara and Horana not being operational during the reporting period consequent to the cessation of the Power Purchase Agreements. Further, a provision for impairment of approximately Rs. 400 million was made in respect of the remaining assets of these two companies, which dragged down the profits of the sector.

The company disposed of the Horana power plant during the financial year, while the 100 MW power plant at Embilipitiya remained operational, albeit with lower generation due to excessive rainfall during the first nine months of the financial year. During the period under review the Group inaugurated a land mark project by investing in a luxury retirement homes complex that will comprise of 140 villas and associated high-end facilities located at a 30 acre site in Negombo. The project aims to attract Sri Lankans living overseas who wish to return to their homeland as well as foreign nationals who wish to retire and live in Sri Lanka.

Source: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=104011

Information on hotel facilities, dining options, event spaces and excursions can be accessed at the tip of a finger. The information is complimented by an extensive gallery complimenting the sensory journey one engages with when browsing the app. It also provides a unified platform for feedback and reservation inquiries creating easy interaction between Aitken Spence Hotels and potential guests. “The digital revolution has created a fundamental need for businesses to evolve their practices.  The launch of an iPad app for Aitken Spence Hotels is one of the many initiatives lined up to evolve our practices to offer our guests an engaging and seamless experience The app is the perfect tool to create brand awareness amongst tour operators, destination management companies and tourists from around the world. We plan to evolve the services that can be offered through the app creating ease of access to the modern traveler,” says Aitken Spence Hotels Vice President, Sales and Marketing
Althaf Mohamed Ali. Aitken Spence is Sri Lanka’s largest resort operator and the largest international hotel operator in the Maldives. The Group also manages a portfolio of hotels in India and Oman. The company’s premier resorts operate under the brand Heritance.

Source: http://www.ft.lk/2014/05/27/aitken-spence-hotels-unveils-app-for-ipads/

During the period, Aitken Spence Hotel Holdings PLC, the Group’s hotel owning strategic business unit, entered into a shareholders’ agreement with RIU Hotels of Spain to build a 500-room luxury resort in Ahungalla, costing approximately $ 100 million. The construction of the hotel is expected to commence during the second half of the financial year 2014/15.
Annual revenue for the Maritime Cargo Logistics sector increased 15.3% to Rs. 7.3 billion whilst profits before tax for the sector increased by 26% to Rs. 709 million. Entry into a strategic partnership in Fiji for port management services through the acquisition of a 51% shareholding in Ports Terminal Ltd. – the first- ever public-private partnership overseas by a Sri Lankan company recorded to date, was a highlight for the year.

Services sector reported revenue of Rs. 819.6 million for the financial year under consideration which was a growth of 11.5 %, and a profit before tax of Rs. 180.5 million, a growth of 10.2% compared to the previous year. The Strategic Investments sector reported a year-on-year decrease of 16.1% in revenue to Rs. 15.3 billion, while profit before tax dropped by 81.1% to Rs. 159.8  million for the financial year primarily due to the Aitken Spence power plants in Matara and Horana not being operational during the reporting period consequent to the cessation of the power purchase agreements. Further, a provision for impairment of approximately Rs. 400 million was made in respect of the remaining assets of these two companies, which dragged down the profits of the sector. The company disposed of the Horana power plant during the financial year, while the 100 MW power plants at Embilipitiya remained operational, albeit with lower generation due to excessive rainfall during the first nine months of the financial year.

During the period under review the Group inaugurated a landmark project by investing in a luxury retirement homes complex that will comprise 140 villas and associated high-end facilities located at a 30-acre site in Negombo. The project aims to attract Sri Lankans living overseas who wish to return to their homeland as well as foreign nationals who wish to retire and live in Sri Lanka.

“The company has been able to deliver consistent results through a combination of strategic foresight and the capacity to transform challenges into opportunities. These qualities have been underpinned by a well-diversified business model that supports the company’s growth trajectory,” said Chairman Deshamanya D.H.S. Jayawardena. “Our strategies for the long term and exploration of potential new areas of business factor in the company’s responses to some of the key future trends,” he added. The Group announced a dividend of Rs. 2 per share which is a 33% increase over the previous year subject to approval by the shareholders at the Annual General Meeting. Aitken Spence PLC is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East, Africa and South Pacific.
It is an industry leader in hotels, travel, maritime services, logistics, power generation and printing, with a significant presence in plantations, financial services, insurance, information technology and apparel.

Source: http://www.ft.lk/2014/05/27/aitken-spence-ups-bottom-line-by-12-to-rs-3-7-b-in-fy14/

Accordingly, FlySmiLes members can now earn 200 FlySmiLes Miles per night at Heritance Ahungalla, Heritance Kandalama, Heritance Tea Factory and Heritance Ayurveda MahaGedara; and 100 FlySmiLes Miles per night at Earl’s Regency, The Sands, Hotel Hilltop and Bandarawela hotel. Aitken Spence Hotels’ Vice President – Sales and Marketing, Althaf Mohamed Ali said, “We are delighted to sign this partnership with SriLankan Airlines; being able to provide our guests with the facility to earn and redeem FlySmiLes miles while staying at our hotels and resorts in Sri Lanka, is an exciting opportunity.

We believe that the strategic alliance formed complements our synergies which will prove to be mutually beneficial to all stakeholders.” SriLankan Airlines Head of Commercial Operations Mohammad Fazeel said, “SriLankan Airlines, as the national carrier, has always been looking for new avenues to reward its FlySmiLes members. With the latest partnership with Aitken Spence Hotels, FlySmiLes members will have access to more rewards, benefits and more ways of earning and burning miles.  With the Airline’s entry to oneworld alliance on 1 May this year, they will also have the privilege of earning and redeeming miles whenever they fly with any of the oneworld member airlines.” With the new partnership, FlySmiLes members can also redeem their Miles by obtaining vouchers in denominations of LKR 1,000, 5,000, and10,000 from FlySmiLes, to settle in full or in part for their stays at any Aitken Spence hotel.

In order to earn miles members are required to quote the FlySmiLes Membership number at the time of the reservation and also produce the FlySmiLes membership card upon check-in. To redeem miles members are required to call FlySmiLes Call centre on +94(0) 19733 3333. For more details log on to http://www.flysmiles.com and www.aitkenspencehotels.com. Aitken Spence Hotels operates a chain of 24 hotels and resorts in Sri Lanka, Maldives, India and Oman. With many years in the hotels industry, the company’s’ expertise in hotel design, building and management is complimented by its dedication and commitment to excellence in everything on offer. Located in some of the key tourist locations each of the chains leading hotels caters to a diverse client base. From 1 May, FlySmiLes will include two new membership tiers to its program – Platinum and Classic. Thereon, membership tiers will progress from the entry level Blue, to Classic, Silver, Gold and its new top-level Platinum.

The top tier frequent flyer categories of Platinum, Gold, and Classic – the new FlySmiLes Club – will be matched with the corresponding oneworld tiers, Emerald, Sapphire, and Ruby respectively.  Holders of these top level cards will receive benefits, privileges and recognition across the entire oneworld network, when they fly with any oneworld member airline.

Source: http://www.ft.lk/2014/04/23/more-benefits-for-frequent-flyers-with-flysmiles-aitken-spence-partnership/

“The South Asian sector, mainly consisting of the Maldivian properties shouldering 70 per cent of the quarterly turnover grew nearly 9 per cent YoY in the said quarter with the Sri Lankan sector showing a growth of 17 per cent YoY in its revenues in the quarter under review,” a TKS Securities report said.

With a total room capacity of over 2,000 spread across Sri Lanka, Maldives, India and Oman under the prestigious brands, Adaaran and Heritance, Aiken Spence is well positioned by investing in its properties ahead of its peers.

The report said that AHUN owns six, three to five star resorts under Heritance and Aitken Spence brands and manages three hotels in Sri Lanka whilst owning and operating five resorts in Maldives under the Adaaran brand.

AHUN’s operating costs have escalated slower than the revenue growth (up 11 per cent YoY) during the quarter under review mainly due to the slow growth in operating and interest costs in the South Asian sector (about 3 per cent YoY).

“In the light of the growing tourism industry, AHUN has taken prudential steps to grasp growth opportunities by expanding its resort portfolio, the report said, adding that in 2012 AHUN’s oldest property was refurbished and re-positioned as Heritance Mahagedara with an investment of Rs. 750 million. Thereafter FY13 saw “The Sands” and Hotel Hilltop being re-branded and refurbished. Further expansion in room capacity to nearly 200 is expected to follow at the existing 110 room “The Sands” and be ready by winter FY15.
It said that the Heritance Kandalama property underwent refurbishment in its Dambulla wing and also added a purpose-built convention facility at Rs. 250 million in the same wing in 4QFY13.

The brand new 145 room Heritance Negombo (formerly Browns Beach) is being constructed at Rs. 4.5 billion. “This new 5 star property when commissioned operations in mid-2014 would be the fifth resort in the Heritance range. AHUN would be infusing a substantial portion of the funds required as equity for the project,” the report said.

It said that AHUN’s major resort project in the southern coast of Sri Lanka, in the vicinity of its current Heritance Ahungalla property has been re-launched. AHUN together with Spanish owned RIU Hotels, as joint venture partners would be constructing a 500 room, 5 star luxury resort, at a cost of $100million, in which AHUN would take a majority stake whilst RIU has the remaining stake.

“For the medium term, in its Sri Lankan sub-segment, plans have been drawn to develop 100 acres of beach front property in Nilaveli owned by AHUN’s parent Aitken Spence with the aim of harnessing the tourism upbeat in the Eastern coastal area.”

Paving the way for more opportunities for AHUN in Maldives, last year the group formalised arrangements with the Maldivian Government to increase the buildable area ratio in each of the atolls, which would allow the group to better optimise available land resources in Maldives, according to the report.

Source : http://www.sundaytimes.lk/140406/business-times/spence-hotels-revenue-grows-16-for-3q2014-91230.html