Colombo, Sri Lanka – 25 August 2026 – Dolphin Hotels PLC (CSE: CHTL) today announced its Annual Report for the financial year ended 31 March 2026, showcasing a year of sustained operational resilience and strategic growth amidst a complex global and local tourism environment. The report highlights significant revenue growth, improved occupancy rates, and a continued commitment to sustainable practices and guest experience enhancement.
Strong Financial Performance Driven by Operational Excellence
For the financial year ended 31 March 2026, Dolphin Hotels PLC recorded a commendable revenue of Rs. 1,699.37 million, marking a substantial 17.45% increase from Rs. 1,446.90 million in the previous year. This growth was underpinned by an improved average room rate (ARR) of Rs. 46,150, up from Rs. 41,800, and a rise in occupancy to 75% from 73% in 2025.
While Profit Before Tax (PBT) experienced a slight dip to Rs. 201.60 million from Rs. 230.16 million, largely due to significant strategic investments in property enhancement and increased operational expenditures, the Profit After Tax (PAT) demonstrated a strong upward trajectory. PAT surged to Rs. 221.12 million, compared to Rs. 167.43 million in the prior year, primarily benefiting from a favourable income tax credit in the current period, contrasting with a tax expense in 2025. This resulted in an improved Earnings Per Share (EPS) of Rs. 3.50, up from Rs. 2.65.
The company also strengthened its financial position, with total assets rising to Rs. 6,253.22 million from Rs. 6,010.23 million, and total shareholders’ funds increasing to Rs. 4,660.37 million. The Debt to Equity ratio remained stable at a healthy 1%, underscoring prudent financial management.
Strategic Investments Bolster Operational Capabilities
The Annual Report emphasizes Dolphin Hotels PLC’s focus on an integrated operational model designed for sustained growth. Key highlights from the operational review include:
- Revenue Optimisation: Enhanced market positioning, effective yield management, and improved pricing strategies contributed to robust accommodation revenue.
- Segmental Growth: Food and beverage operations recorded a positive 7% growth, while SPA operations saw a significant 25% increase, reflecting the growing demand for wellness tourism experiences.
- Property Enhancement: The company undertook significant investments in property upkeep, infrastructure improvements, and operational systems to preserve asset quality and elevate guest satisfaction standards. These strategic reinvestments, though impacting short-term PBT, are geared towards long-term competitiveness and value creation.
Unwavering Commitment to Sustainability and Governance
Dolphin Hotels PLC reiterated its commitment to sustainability as a core pillar of its long-term strategy. The company’s integrated reporting framework highlights its efforts in:
- Environmental Stewardship: Focused on efficient energy and water management, waste reduction, and promoting eco-friendly hospitality practices. Noteworthy initiatives include the restoration of the Gin Oya Nypa Fruticans mangrove, a pioneering biodiversity conservation project.
- Social Responsibility: Supporting local communities through employment generation, responsible sourcing, and staff development programs, including professional training and wellbeing initiatives.
- Robust Governance: Adhering to high standards of corporate governance, ethical conduct, and transparency, with oversight from a well-structured Board and its sub-committees, including the Audit and Risk Management committees.
Cautiously Optimistic Outlook for Sri Lanka Tourism
Looking ahead, Dolphin Hotels PLC maintains a cautiously optimistic outlook for the global and Sri Lankan hospitality industry. The report notes the sector’s gradual recovery, supported by improving global mobility and increasing interest in experiential and wellness tourism. Sri Lanka’s unique attractions and growing international visibility are expected to drive further growth.
The company’s future strategic priorities will continue to centre on strengthening operational resilience, enhancing guest experiences, optimising revenue, advancing sustainability initiatives, and leveraging digital innovation. Through disciplined financial management and continuous investment, Dolphin Hotels PLC aims to solidify its market position and deliver sustainable long-term value for all stakeholders.
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