Jetwing Hotels Ltd will be entering Hikkaduwa and rebranding Bansei Royal Resorts Hikkaduwa PLC’s titular leisure property t o Bansei by Hotel J, after Bansei announced to the Colombo Stock Exchange that the management of the hotel will be passed to Jetwing, following a six-month refurbishment period to create a more distinctive look and feel.
“Jetwing has no presence in Hikkaduwa, so I’m glad that Bansei invited us,” Jetwing Group Chairman Hiran Cooray told Mirror Business.
He said t hat t he limited service concept introduced to the country by Jetwing will be implemented, whereby room rates will vary depending on the supply and demand. Amaya Leisure PLC was the previous managers of the property but a decline in the hotel’s performance may have prompted the Japanese investorsBansei Securities to decide in a change ofmanagement.
The Amaya Leisure PLC agreement was terminated with effect from October 1, which coincides with the end of the renovation period, and Jetwing Hotels Ltd will take up its new duties from December 1.
The 30-room property was listed on the Colombo Stock Exchange in March 2013, and posted a Rs.4.8 million profit after tax (PAT) for the financial year 2012/13, which went down to Rs.2.1 million for 2013/14.
“The revenue of (the) company has increased by 7 percent to Rs.83 million from Rs.76 million compared to the previous financial year. However, the profit after tax (PAT) has drastically dropped by 56 percent. The main reason for this drop in PAT is the increase in deferred tax due t o t he company’s transition from Sri Lanka Accounting Standards to Sri Lankan Financial Reporting Standards,” BanseiRoyal Resorts Hikkaduwa PLC Chairman Tilak de Zoysa said in his Chairman’s Review.
The company also made Rs.7.56 million loss for the first quarter ending in June 2014, mainly due to lack of sales during the renovation, which added a new open space pool bar.
The top echelon was not available for comment as most were promoting the hotel in Japan at a Tokyo Road Show.
Plans for expanding the hotel to an adjoining property and expansion to other leisure destinations in Sri Lanka were published last year, which were not mentioned in the annual report. However, Cooray said that Bansei has discussed its intentions to open a food court, which includes various cuisines, including Chinese and Japanese.
The main shareholder G.A.C. de Silva owns a 51 percent stake in Bansei Royal Resorts Hikkaduwa PLC, while Japan’s Bansei Securities Ltd owns a 39 percent share.
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