COLOMBO, Sri Lanka – 28 August 2026 – Royal Palms Beach Hotels PLC (CSE: RPBH) has unveiled its Annual Report for the financial year ended 31st March 2026, showcasing a period of remarkable financial recovery and strategic growth. The premium hospitality provider has reported an unprecedented surge in profitability, significantly exceeding previous year’s figures amidst a robust revival in Sri Lanka’s tourism sector.
The company’s Chairperson’s Review highlighted a year defined by resilience, strategic agility, and renewed commercial strength. This strong performance was primarily attributed to a resurgence in international travel demand during the winter months, coupled with disciplined management and targeted commercial initiatives.
Stellar Financial Performance Underpins Growth
Royal Palms Beach Hotels PLC reported a substantial enhancement across key financial metrics:
- Gross Revenue: Increased by 9.93% to Rs. 1,050.7 million, up from Rs. 955.8 million in the previous year.
- Operating Profit before Interest & Tax: Skyrocketed by an impressive 225.81% to Rs. 114.2 million, demonstrating enhanced operational efficiency.
- Profit Before Tax: Saw an astounding nearly six-fold increase (499.90%) to Rs. 203.4 million, compared to Rs. 33.9 million in FY 2024/25.
- Profit After Tax: Surged by a remarkable 859.56% to Rs. 154.0 million (FY 2024/25: Rs. 16.0 million), reflecting the company’s strong bottom-line performance.
- Earnings Per Share (EPS): Reached Rs. 3.08, an impressive 862.50% increase from Rs. 0.32 in the prior year.
- Shareholders’ Funds: Grew by 5.72% to Rs. 2,935.3 million, reinforcing the company’s financial stability.
- Total Assets: Increased by 4.77% to Rs. 3,961.8 million, indicating healthy asset growth.
- Operating Cash Flows: Strengthened significantly to Rs. 335.5 million, nearly doubling the previous year’s performance and providing ample financial flexibility for continued investment.
The company’s market capitalization also reflected this positive sentiment, with the market price of a share rising by 53.33% to Rs. 50.60 as at 31st March 2026, from Rs. 33.00 a year prior.
Strategic Agility and Market Leadership in a Thriving Tourism Landscape
The year 2025 marked a significant milestone for Sri Lanka’s tourism, recording its highest-ever annual tourist arrivals with over 2.36 million visitors, surpassing the previous record set in 2018. Royal Palms Beach Hotels PLC capitalized on this positive trend through a multi-faceted commercial strategy.
Key initiatives included a comprehensive repositioning of the Hotel’s digital identity, enhanced engagement across online travel platforms, and strategic participation in leading international travel exhibitions such as World Travel Market London, ITB Berlin, and Arabian Travel Market. The company also broadened its market reach through strengthened partnerships with overseas tour operators and expanded promotional initiatives within the MICE (Meetings, Incentives, Conferences, and Exhibitions) and leisure segments. Particularly encouraging was the continued growth of regional travel, especially from India and the wider South Asian market, supported by the expertise of Tangerine Tours.
The hotel’s commitment to service excellence was further affirmed by prestigious international accolades, including the TripAdvisor Travellers’ Choice Award, HolidayCheck Gold Award, and Booking.com Traveller Review Award.
Commitment to Sustainability and Operational Excellence
Royal Palms Beach Hotels PLC continued its dedication to integrating sustainability across all operations. The Annual Report highlighted significant achievements in environmental stewardship:
- Carbon footprint reduced to 1,582 tCO₂e.
- Electricity consumption averaged 36.76 kWh per guest, significantly below the Sri Lanka Sustainable Energy Authority benchmark.
- Water consumption averaged 2.13 m³ per guest.
- 87% of waste was recycled or recovered.
- The hotel is proudly Sri Lanka’s first Eco Label Certified Hotel and maintains Travelife Gold, ISO 14001, ISO 45001, ISO 22000 & HACCP certifications.
The company also emphasized its investment in human capital, fostering operational excellence through continuous employee development, structured training, leadership development, and comprehensive wellbeing programmes. This people-centred culture is seen as a fundamental driver of service excellence and sustainable business success.
Robust Governance and Risk Management
The Annual Report detailed the company’s strong corporate governance framework, aligning with CSE listing rules. A Board of 10 Directors, including 3 Independent Non-Executive Directors, oversees the strategic direction. Active Audit, Remuneration, Related Party Transactions Review, and Nomination & Governance committees ensure transparency and accountability. The company also maintains a proactive Enterprise Risk Management framework, addressing a spectrum of risks from economic and geopolitical to cybersecurity and human capital, enhancing operational resilience.
Looking Ahead with Confidence
While global economic uncertainties persist, the outlook for Sri Lanka’s tourism industry remains positive. Royal Palms Beach Hotels PLC is strategically positioned to leverage future opportunities through continued investment in its brand, guest experience, digital capabilities, infrastructure, and people. The company remains committed to sustainable growth, operational excellence, and enduring value creation for all stakeholders.
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