To better harness the post-war rebound in tourism, The Lighthouse Hotel is to add more rooms.
The Company’s Board of Directors last week resolved to expand the hotel by the construction of 15-20 new rooms, a new restaurant, and a new bar with an extension to the spa under the expansion plan of the Company in addition to the refurbishment of the existing rooms.
Coming under the Small Luxury Hotels Association, The Lighthouse Hotel was constructed in 1996.
Original plans for upgrade and expansion were first announced in the Company’s 2010/11 Annual report.
In his review Chairman Hiran Cooray said in order to maintain that high standard, the Board has decided to up-grade the existing hotel rooms together with the main public areas in order to further enhance the overall quality of the Hotel.
“It is our expectation that these developments will attract high-yield overseas niche markets. In addition, the Board also decided to add additional 12 rooms of a higher category. These rooms will include plunge pools and other modern facilities. We believe this up-grade which will incur an estimated total cost of Rs.300 million will further enhance the value of the Hotel. The Company will use existing funds for this purpose and any short-fall will be bridged from bank facilities,” Chairman Cooray added in his review in the 2010/11 Annual Report.
The Lighthouse Hotel signed a lease agreement with “Galle Heritage Villa” comprising 4 rooms for a period of five years with effect from 1, October 2011. The Lighthouse Hotel also signed a Lease Agreement with ERA Beach Hotel in Thalpe which comprises eight rooms for a period of five years with effect from 1st December, 2010.
Despite most part of the first six months of current 2011/12 financial year being off season, The Lighthouse Hotel had posted a Rs. 7 million net profit, up by 248% in comparison to a Rs. 4.6 million loss in the corresponding period of last year. Revenue had grown by 23% to Rs. 188.2 million.
In 2010/11 financial year, the Company’s revenues amounted to Rs. 421.3 million, up from Rs. 304 million in the previous year and net profit was Rs. 60.4 million, higher by 167% from 2009/10.
The Lighthouse comes under Jetwing Group with direct and indirect holding of 43%, followed by Mercantile Investments (16.6%) and EPF (11%).