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Renuka City Hotels adding 20 more rooms with Rs. 200 m investment

Sep 8, 2011 7:02:36 PM - www.ft.lk

Bullish on post-war revival in tourism and to cater to growing demand for its hospitality Renuka City Hotels Plc, is investing Rs. 200 million to add 20 more rooms, bringing the total to 100 inclusive of the adjoining Hotel Renuka.
Chairman Ravi Thambiayah told the Daily FT that the company was waiting for approvals to start construction work. “We hope to complete the addition of 20 rooms by early next year,” he added.

He said that apart from the addition of 20 new spacious and upgraded rooms, Renuka City Hotels will also have a new roof-top swimming pool and fitness centre.
The company strives to maintain excellence through upgraded services and facilities for which every five years it refurbishes the properties. “This is to keep up with the ever changing needs of our guests and to keep the hotel fresh and modern,” Thambiayah added.
The latest exercise was concluded between September and December 2010.  Renuka City Hotel and Hotel Renuka are popular among tourists as well as expatriates, local business houses, NGOs, staff of diplomatic missions. The recent refurbishment was also done with an aim to lure the new and younger market segment.
Brand new guestrooms with boarded timber floors, new lighting and plush interiors provide greater ambiance and comfort. In tandem with more space in most of the rooms they have been equipped with a variety of modern amenities including flat screen TV, safety deposit lockers, tea/coffee service, bath amenities, minibar, wi-fi facilities etc.
The new Eclipse bar provides a cool, stylish hangout with an attractive range of choices whilst two brand new conference and banquet venues have been introduced with refurbishment, the Ivory and Ebony. The reception of the hotel had been made larger as well.
In the financial year ended on 31 March, 2011, Renuka City Hotels Plc had increased revenue to Rs. 99.2 million, up from Rs. 80.6 million in the previous year. Gross profit grew to Rs. 81.2 million, from Rs. 66 million. The company had Rs. 177.4 million in other operating income mainly capital gains and dividend income, though down from Rs. 187 million a year earlier. Pre-tax profit was down to Rs. 179.5 million in FY11, from Rs. 217 million in the previous year whilst after-tax profit amounted to Rs. 171.7 million, as against Rs. 194.5 million in FY10. The lower profit and average occupancy of 56% was due to the hotel being closed for four months for refurbishment.
Renuka City Hotels has proposed a final dividend of Rs. 5.50 per share for FY11 (same as in FY10) subject to approval at the company’s AGM on 23 September.
The company’s total assets amounted to Rs. 1.7 billion, up from Rs. 1.5 billion as at 31 March, 2010. Total liabilities were only Rs. 61.6 million though up from Rs. 20.8 million in the previous year. Total equity was Rs. 1.63 billion inclusive of Rs. 1.4 billion in general reserves, up from Rs. 1.5 billion last year.
Renuka Hotels Ltd., saw a Group revenue of Rs. 230.6 million, up from Rs. 161.6 million whilst at company level it rose from Rs. 81 million to Rs. 131.4 million. Gross profit was Rs. 161.8 million up from Rs. 113 million at Group level and other income was Rs. 346.3 million, higher in comparison to Rs. 298 million in FY10.  Group pre-tax profit was Rs. 370.7 million, up from Rs. 330.4 million whilst after tax profit was Rs. 352.5 million as against Rs. 290 million in FY10. Net profit attributable to equity holders of parent was Rs. 287.7 million in FY11, up from Rs. 217 million in the previous year.
Hotel Renuka had an average occupancy of 90% in FY11.
The board of directors of Renuka City Hotels Plc comprises R.B. Thambiayah (Chairman), N.A. Thambiayah (Deputy Chairman), S.R. Thambiayah (Jt. Managing Director), A.L. Thambiayah (Jt.  Managing Director), F.H. Puvimanasinghe, M.A. Jayawardena, R.S. Tissanayagam, C.S. Wijeyeratne, and N.R. Thambiayah.

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