Hotel Developers calls for Budget Day EGM over serious loss of capital

Friday, 28 October 2011 03:51 - - {{hitsCtrl.values.hits}}

Hotel Developers (Lanka) (HDEV), the owning company of Hilton Colombo, has called for an Extraordinary General Meeting on Budget Day (21 November) over the serious loss of capital.

As at 31 March 2010, the accumulated loss at HDEV stood at Rs. 10.3 billion and net assets of the company were a negative Rs. 4.3 billion.

Some of the measures proposed by the directors to prevent/recoup the loss already incurred include negotiating with Hilton Worldwide to reduce the management fees and other group charges with a view to increase profitability. Discussions are on with the Government with a view of restructuring the company to overcome the debt burden and interest commitment.

Hotel Developers...

The minimum room rate revised upwards by the Government has improved the profitability of the company and tourist arrivals having shown a marked increase positively reflecting in higher occupancy in the hotel.

Despite the EGM announcement, the share price of HDEV yesterday closed unchanged at Rs. 140.

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