The Kingsbury enjoys first year of success; readies for more

Thursday, 24 July 2014 00:00 - - {{hitsCtrl.values.hits}}

The Kingsbury, which set a new benchmark in luxury hospitality, has completed its first year of success and the company said it was gearing for greater excellence amidst upcoming new competition including from global brands. Chairman Mohan Pandithage told shareholders in the company’s 2013/14 Annual Report: “The year under review marked the successful completion of the first year of operations of the hotel under its new brand ‘The Kingsbury’.” “Our efforts in positioning the hotel as a luxury city hotel in Colombo were acknowledged by the World Luxury Awards, where ‘The Kingsbury’ was bestowed with the title ‘Best Luxury City Hotel in the Indian Ocean Continent’ for the year 2013. Global recognition in the hotel’s first year of operations after refurbishment and expansion is indeed noteworthy,” he added.

Impressive revenue

The Kingsbury spa

The Kingsbury has posted an impressive revenue of Rs. 2.2 b in 2013/14, the highest-ever in its history. Operating profit for the year was Rs. 303 m. However, Profit After Tax for the year was Rs. 33 m, largely due to the significant finance costs amounting to Rs. 282 m. The hotel also successfully completed a rights issue, raising Rs. 660 m as equity during the year under review. Pandithage said in 2013/14 the company focused on investing in people, training them in internationally accredited institutions, to keep them abreast with new trends in delivering world class service. “Throughout the year we have continually upgraded our product to consistently exceed the expectations of our international and local clientele,” he added. Commenting on the industry performance, The Kingsbury Chairman said the Government’s strategic initiatives of targeting 2.5 million tourist arrivals per annum by 2016, with plans of doubling hotel room capacity to 45,000, augurs well for the industry. Sri Lanka witnessed a surge in tourism this year, with 1.27 m arrivals in 2013, a growth of 26.7%. Earnings from tourism also increased, reaching $ 1.7 billion. “Along with traditional markets in Western Europe, we are encouraged by the growth in emerging tourism sources such as South and East Asia and the Middle East. As the middle class in these economies continues to expand, the prospects for Sri Lankan tourism will be enhanced. “The Com-monwealth Head of Government Meeting (CHO-GM), which was held in November 2013, received wide international media coverage on our beautiful country. As hosts to the international delegates, we take pride in partnering in this historical event, where Sri Lanka took over the Commonwealth Chair-in-Office amongst its 53 member states for a two year period.”

Important recommendations

Pandithage in his Chairman’s Review however did make some important recommendations. “Whilst the industry continues to hold plenty of promise, there are still issues that need to be ironed out to ensure the realisation of this promise. Access to skilled labour in this industry is a constant challenge and it requires a concerted effort by all stakeholders to address this,” Kingsbury Chief said. “The continued development of transportation infrastructure is essential, particularly to connect tourism hot spots in the Eastern Province along with the development of domestic air transportation,” he added. Pandithage also said the forthcoming entry of a number of international hotel chains into Sri Lanka is a reflection of the promise this industry holds. Whilst this would increase the level of competition in the market, these world renowned brands will also raise the overall profile of the Sri Lankan tourism product, which will enhance the size of the market for all players. The ‘Port City’ that is taking shape just across the road from the hotel is looked upon as an opportunity, as the Kingsbury would be well located at the gateway to this new and exciting development. “We are also strengthening our international marketing efforts in emerging markets in the Asian region, particularly China and India, catering to their growing affluent middleclass,” Pandithage said.

Rapid strides

The Kingsbury Managing Director MD Lalin Samarawickrama in his review in 2013/14 Annual Report also said the performance of the company has taken rapid strides during its first full year of operation, subsequent to its branding as ‘The Kingsbury’. “Although the company succeeded in making only a nominal profit during the year, it was a remarkable recovery considering the heavy losses incurred during the previous year, mainly due to the establishment being shut down for refurbishment,” he added. Samarawickrama said due to an accelerated strategic marketing and sales program, The Kingsbury succeeded in achieving the targeted occupancy levels during the year and the outlet facilities which includes the talk of the town Sky Lounge, the Harbour Court buffet brunch, the seafood specialty The Ocean Restaurant and the authentic Chinese Yue Chuan Restaurant attracted many a client and made considerable contributions toward the revenue of the hotel. The newly-designed banquet halls attracted many weddings and other functions. “Overall, it is our intention to improve the standards and facilities of the hotel, meet the ever-increasing demands of the modern day traveller and ensure The Kingsbury rating to be at the highest possible level,” the MD added. The Kingsbury being nominated as one of the world’s best luxury hotels and receiving the award of The Best Luxury City Hotel within the entire Indian Ocean continent has given strength to the entire management team, he said. Samarawickrama also said extensive training programs for employees conducted by internationally renowned training companies have been able to develop the skills of the management team and staff to bring them up to the level required of a luxury hotel. Special emphasis has been made to maintain the best of health and hygiene conditions within the entire hotel premises. This too has enabled the hotel to win many accolades from local organisations.

Sunil Dissanayake bids adieu to Hayleys, Kingsbury

Sunil Dissanayake

Veteran professional Sunil Dissanayake is bidding adieu to Hayleys Plc as well as The Kingsbury Plc, by end August 2014. Sunil whilst he was Hayleys Group Human Resources Head was appointed as the General Manager of The Kingsbury on 7 May 2013 whilst he was serving the Board as a Director since April 2010 when the Company was functioning as Hotel Services (Ceylon) Ltd. As General Manager and Director he played an important role during the transition of the hotel to a luxury five star and its subsequent progress. Having joined Hayleys Plc in July 2007, Sunil was appointed to the Group Management Committee in the same month. He was also responsible for Group Human Resources, Corporate Communications/Sustainability and Group Security. A Graduate in Hotel Management, Sunil as awarded the Lifetime Gold Award in 2011 and Honorary Membership in 2004 by the Institute of Personnel Management. Prior to joining Hayleys, he held several senior management positions in large private sector entities in Sri Lanka and abroad in Human Resources management and in Hotel Management. He is a former President of the Ceylon Hotel School Graduates Association and a former Member of the Hotel Classification Committee of Sri Lanka Tourism Development Authority. He is a member of the Ceylon Chamber of Commerce Steering Committee for HR and Education and is also a Steering Committee Member of the Lanka Business Coalition (LBCH) for prevention of AIDS.