COLOMBO – 25 August 2026 – HOTEL SIGIRIYA PLC (CSE: HSIG) today announced the release of its Annual Report for the financial year ended 31 March 2026, showcasing a strong financial performance driven by an improving tourism landscape and strategic operational enhancements. The report highlights significant growth in revenue and profitability, reinforcing the company’s resilience and commitment to sustainable value creation in Sri Lanka’s dynamic hospitality sector.
Exceptional Financial Growth Underscores Strategic Acumen
The Annual Report reveals a commendable 17% increase in revenue year-on-year, reaching Rs. 732.1 million for FY 2025/26, up from Rs. 624.9 million in the previous year. This growth was achieved despite a marginal dip in occupancy to 85% (from 87% in FY 2024/25), largely attributed to a significant improvement in the Average Room Rate (ARR) which climbed to Rs. 29,913 from Rs. 24,659. The company’s strategic pricing and enhanced market positioning clearly paid dividends.
Profitability saw a substantial uplift, with Profit Before Interest, Tax, Depreciation & Amortisation (EBITDA) more than doubling to Rs. 145.6 million from Rs. 75.8 million in the preceding year. This robust operational performance translated into a Profit Before Tax (PBT) of Rs. 157.6 million, demonstrating disciplined execution and a sustained focus on long-term value. The company also maintained a strong balance sheet, boasting a debt-free status as at 31 March 2026, with total assets amounting to approximately Rs. 1.7 billion and Net Assets per Share rising to Rs. 70.95.
Navigating Excellence in Hospitality: Operational Strategy
According to the CEO’s Review, Hotel Sigiriya PLC navigated a complex operating environment marked by geopolitical uncertainties, inflationary pressures, and rising operating costs with remarkable agility. Management’s focus on revenue optimisation, operational efficiency, and elevating guest experiences proved instrumental. Key initiatives included:
- Optimising Occupancy & Rate Realisation: Effective revenue management practices and dynamic pricing strategies maximised yield performance.
- Enhanced Service Delivery: Targeted staff development, stronger cross-functional coordination, and a customer-centric culture improved responsiveness and service consistency.
- Infrastructure Investments: Continuous investment in property maintenance, refurbishment, and IT infrastructure to preserve competitive positioning and enhance guest comfort.
- Revenue Diversification: Strong performance in food and beverage operations, with a 26% revenue increase, driven by improved guest spending and outlet utilisation.
Looking ahead, the company plans a soft refurbishment program during the 2026/27 financial year to further enhance the hotel’s overall value proposition, strengthen brand positioning, and support future revenue growth opportunities.
Pioneering Sustainability and Community Engagement
Hotel Sigiriya PLC continues to embed sustainability deeply within its operations and community engagement. A standout initiative, the “Sustainable Bee Honey Project,” was implemented in collaboration with nearby rural communities within the Cultural Triangle. This project integrates biodiversity conservation, supports local livelihoods, and preserves indigenous cultural heritage, aligning with the Group’s ESG commitments and UN Sustainable Development Goals such as “No Poverty” (SDG 1), “Decent Work and Economic Growth” (SDG 8), “Responsible Consumption and Production” (SDG 12), and “Life on Land” (SDG 15).
The project, which saw its first successful honey harvest during the year, not only provides supplementary income for rural families but also enhances pollination, contributing positively to local biodiversity. This initiative further strengthens Hotel Sigiriya’s position as a nature-positive and sustainability-driven tourism destination, offering guests transformative experiences that connect them meaningfully with local culture and conservation efforts.
Leadership and Governance for Enduring Value
Chairman W.D.K. Jayawardena, in his review titled “From Recovery to Renewed Growth,” highlighted the Board’s commitment to responsible governance, financial discipline, operational excellence, and environmental stewardship. The company’s robust corporate governance framework, overseen by its Board and various committees including the Audit, Remuneration, Related Party Transactions Review, and Nominations & Governance Committees, ensures transparency and accountability across all operations. This steadfast approach is crucial in building long-term resilience and creating sustainable value for all stakeholders.
Optimistic Outlook for Sri Lankan Tourism
Despite ongoing global economic uncertainties and geopolitical developments, the outlook for Sri Lanka’s tourism industry remains cautiously optimistic. Hotel Sigiriya PLC is well-positioned to capitalise on improving airline connectivity, strengthening destination promotion, and growing international interest in experiential and wellness tourism. The management is confident in the company’s ability to effectively navigate evolving market conditions and sustain its growth trajectory through continued focus on efficiency, service excellence, and strategic development initiatives.
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