Citrus Leisure revenue and room inventory up
Citrus Leisure PLC recorded a revenue increase of over 200% in 1Q
FY2016 compared to 1Q FY2015 as Waskaduwa Beach Resort contributed 100
million to the top line, accounting for 62% of total revenue.
Waskaduwa Beach Resort, the largest in the Citrus chain, began
commercial operations in June 2014; the addition of its 150 rooms
brought the Group's total room inventory to 240. Despite being new on
the tourism landscape, Waskaduwa recorded a satisfactory level of
occupancy of 44% while Hikkaduwa achieved an impressive 62% occupancy
during the quarter under review which is normally considered the
off-season in the tourism calendar.
Gross profit margin improved to 69% in 1Q, FY2016 from 67% in 1Q,
FY2015 largely due to higher GP margin achieved by Waskaduwa at 71%. The
management expects GP margin to further improve in the future with the
anticipated higher level of occupancy at Waskaduwa in line with the
annual seasonal increase in the expected tourist arrivals.
The room inventory of the group went up to 240 in 1Q, FY2016 compared
to 90 rooms in 1Q, FY2015. Waskaduwa Beach Resort added 150 five-star
graded rooms to the portfolio including 140 Superior Rooms, 06 Deluxe
Rooms, one junior/family Suite and one Presidential Suite.
In June 2015, the group also entered into a management contract to
operate The Steuart Hotel in Colombo, a property owned by the George
Steuart Group.
The management contract reflected the Group's strong commitment
towards the tourism sector by adding another 50 rooms to the portfolio
from 2Q FY2016.
The Steuart by Citrus will operate as a boutique business hotel
offering the convenience of its prime location.
The management believes that the latest additions to its room
inventory position the Group well to cater to the growing tourist
arrivals. The Steuart are expected to break even in the near future in
line with their growing popularity.
The overall bottom line of the Group has depleted to approximately Rs.
128 mn, primarily due to incremental operational costs incurred by the
Group's flagship 5-star hotel in Waskaduwa.
However, the property in Hikkaduwa has shown an approximately 80%
increase in bottom line compared to the preceding quarter. |