Amaya Leisure embarks on expansion

A series of acquisitions and planned developments over the next financial year are projected to lead to more than doubling the capacity of Amaya Leisure PLC, as the Hayleys conglomerate’s hospitality sector company gears to respond to the growth expectations of Sri Lanka’s tourism industry.

In the first nine months of 2011-12, it achieved a net profit of Rs 182 m entirely from operations, the company has embarked on a strategic expansion that will add another 400 rooms to the 350 currently under management, Amaya PLC Managing Director Lalin Samarawickrama said.

The recent acquisition of ‘Lake Lodge’ in Kandalama and land adjacent to Amaya Hills in Kandy, coastal developments planned in Nilaveli in Trincomalee and at Wadduwa, and prospective developments in the wildlife reserves of Yala and Wilpattu could see Amaya Leisure emerge as the third largest player in Sri Lanka’s hospitality sector, he said.

“Occupancy levels are up, and room rates are increasing,” Samarawickrama said. “Amaya Leisure is structured to make profits. Our gearing ratio is around 3 per cent, and returns on revenue are between 30 to 40 percent.”

He said that more rooms are to be added to existing properties Amaya Lake and Amaya Hills, even as properties that recently came under Amaya management -- Hunas Falls, Kandy, Coral Rock, Hikkaduwa and Langdale, Nuwara Eliya -- undergo a revamp in terms of product and marketing.

Web-based booking platforms are to be focused on, and markets that can generate visitors in off season, such as the Middle East will be developed, he explained.

For the nine months ending December 31, 2011, Amaya Leisure PLC (Stated Capital Rs 527 m) posted a revenue of Rs 568 m and pre-tax profit of Rs 195 m.

While revenue reflected a healthy growth of 20 percent over the corresponding nine months of the previous year, profit after tax was lower principally because the previous year’s profits were swelled by capital gains of Rs 281 m.

“Profit performance discounting last year’s capital gains, reflects noteworthy operational improvement and provides a solid platform for expansion,” Samarawickrama said.