Leading leisure sector operator Aitken Spence PLC said it purchased a brand-new five-star hotel with 143 rooms in Chennai for a consideration of US $ 25 million.

The acquisition has been carried out through Aitken Spence Hotel Managements (South India) Private Limited.

Aitken Spence Hotel Managements (South India) is effectively owned by Aitken Spence PLC and Aitken Spence Hotel Holdings PLC in the ratio of 49:51. Aitken Spence effectively controls 74 percent of the equity shares of Aitken Spence Hotel Holdings PLC.

Aitken Spence’s tourism sector saw its revenue growing by 8.2 percent year-on-year (YoY) to Rs.15.2 billion and profit-before tax surging by 26.3 percent to Rs.4.4 billion for the financial year ended March 31, 2014. The profit-after tax stood at Rs.3.7 billion, up from Rs.2.9 billion in the previous year. Aitken Spence already manages two hotel properties in India—Hotel Atithi in Coimbatore and Hotel Tamara in Puducherry.

However, Aitken Spence Chairman Harry Jayawardena told the shareholders in the company’s latest annual report that their operations in India have underperformed during the year, “despite the very promising prospects of the destination.”

“In view of this, our shareholders will be pleased to note that we are currently reviewing our strategy for the destination and expect to modulate our business model and operations with a view to shift performance towards positive returns,” Jayawardena said.

The company also owns and operates five resorts in the Maldives—Adaaran Club Rannalhi, Adaaran Prestige Vadoo, Adaaran Select Hudhuranfushi, Adaaran Select Meedhupparu and Adaaran Prestige Water Villas and manages six properties in Oman—Ruwi Hotel and Al Falaj Hotel in Muscat, Sur Plaza Hotel in Sur, Desert Nights Camp in Al Wasil Al Wadi Hotel in Sohar and Jabal Akhdar Hotel in Jabal Akhdar.

According to the annual report, the Maldivian hotels segment recorded a 25.7 percent YoY increase in performance over the previous year, while the Sri Lankan hotels segment witnessed its profit-before tax improving by 39.3 percent over last year.

Meanwhile, Aitken Spence last year announced plans to partner with RIU Hotels, Spain to build a US $ 100 million resort on the company’s 11-acre property in Ahungalla, which is adjacent to Heritance Ahungalla. The resort is due for completion by winter 2016.

And also, the latest addition to its eight existing hotel properties in Sri Lanka would be 150-roomed Heritance Negombo, which is scheduled to open this winter.

Source: http://www.dailymirror.lk/business/features/48316-aitken-spence-in-us–25mn-indian-hotel-acquisition.html