Aitken Spence invests $ 25 m for Chennai five star
Thursday, 12 June 2014 00:49
Aitken Spence Group revealed yesterday it has bought a brand new 143-room five star hotel in Chennai for $ 25 million (around Rs. 3.2 billion).
The investment and the acquisition is via Aitken Spence Hotel Managements (South India) Ltd., which is owned 51% by Aitken Spence Hotel Holdings PLC and 49% by its parent Aitken Spence PLC.
Aitken Spence already has presence in India with two properties in Poducherry and Coimbatore.
This is apart from major operations in the Maldives with six resorts and overseeing six hotels in Oman.
The group’s operations in India in FY14 had fallen short of expectations and much like in previous years, the destination continued to deliver only moderate returns. In 2013/14, the group’s operations were very much on maintenance mode and the group re-assessed its presence and investments in the destination.
“In a bid to move forward towards positive contribution, the group is currently analysing the present business model with an intention to include direct investments in addition to the existing management model,” Aitken Spence Managing Director Rajan Brito told shareholders in Aitken Spence Hotel Holdings Annual Report.
Spence Hotel Holdings posted strong net operating profit growth approximating to a 26% growth with robust contribution from both Sri Lanka and the Maldives.
In 2013/14, the group’s performance was a profit from operations of Rs. 3.967 billion compared to Rs. 3.153 billion reported the previous year.