Colombo, Sri Lanka – 01 September 2026 – Ceylon Hotels Corporation PLC (CHC) has announced a significant upturn in its financial performance for the year ended 31st March 2026, delivering its strongest post-crisis results. The Group’s Annual Report, released today, highlights substantial growth in revenue and profitability, underscoring the resilience of Sri Lanka’s tourism sector despite prevailing global and domestic challenges.
Strong Financial Highlights Propel CHC Forward
The Group recorded impressive financial growth, with key indicators demonstrating a remarkable recovery and expansion:
- Revenue: Surged by an outstanding 42% year-on-year to Rs. 2,374 million (FY 2024/25: Rs. 1,674 million).
- Earnings Before Interests, Tax, Depreciation & Amortisation (EBITDA): Witnessed a sharp 94% increase to Rs. 507.8 million (FY 2024/25: Rs. 261.3 million), reflecting enhanced operational efficiency.
- Profit Before Tax (PBT): Skyrocketed by 181% to Rs. 322.9 million (FY 2024/25: Rs. 115 million).
- Profit After Tax (PAT): Grew by 56% to Rs. 266.4 million (FY 2024/25: Rs. 171.3 million).
- Earnings Per Share (EPS): Improved significantly to Rs. 1.12 from Rs. 0.77 in the previous year.
- Market Capitalisation: Increased by 59% to approximately Rs. 6.45 billion as at 31st March 2026.
- Total Equity: Strengthened by 3% to Rs. 11,144 million, with Net Assets per Ordinary Share rising to Rs. 45.18.
Chairman’s Review: Navigating Macroeconomic Headwinds
Mr. Sanjeev Gardiner, Chairman of Ceylon Hotels Corporation PLC, noted the privilege of presenting the 60th Annual Report, highlighting Sri Lanka’s tourism sector’s upward trajectory in 2025, which saw record annual arrivals despite the setback caused by Cyclone Ditwah in late November. The nation welcomed 2,362,521 tourists, with India, the UK, Russia, Germany, and China remaining key source markets.
However, the Chairman underscored that tourism earnings grew only marginally, indicating a softening of average visitor spend. The industry also faced challenges from Cyclone Ditwah, which severely impacted the Central Highlands where a substantial portion of CHC’s inventory is located, and the disruption to global travel caused by the ongoing Middle East conflict from March 2026. Despite these macro setbacks, the Group’s consolidated Profit from Operations surged threefold to Rs. 337 million, improving the operating profit margin to 14% from 6% year-on-year.
Strategic Investments and Property Enhancements Drive Growth
The Group’s strategic priority to elevate and position each property to its full revenue-earning potential continued to be successfully rolled out. Refurbishments of key properties like EKHO Surf Bentota, Hotel Suisse Kandy, and EKHO Safari Tissamaharama contributed significantly to the improved RevPAR (Revenue Per Available Room) across the portfolio. Investments are now geared towards transforming historic Rest House properties under its joint venture, CHC Rest Houses Pvt Ltd, with Belihuloya and Kithulgala Rest Houses expected to re-open under new brand identities by October 2026.
Performance Across Subsidiaries and Joint Ventures
The Kandy Hotels Company (1938) PLC Group saw consolidated revenue increase by 47% to Rs. 2,216 million, with operating profit rising 197%. Hotel Suisse, in particular, returned to operation after refurbishment, contributing to this growth. The United Hotels Company Limited and Tissa Resort cluster also showed strong performance, contributing approximately Rs. 1,295 million in revenue.
However, the Group’s share of results from equity-accounted investees shifted to a loss of Rs. 36 million, primarily due to a foreign exchange loss of Rs. 155 million arising from the revaluation of Suisse Hotel Kandy Pvt Ltd’s USD-denominated bank borrowings amidst the LKR’s depreciation against the USD in March 2026.
Outlook: Focus on Value and Market Diversification
Looking ahead, CHC expresses confidence that its refurbishment and reinvestment programme will position the Group to capitalise on continued tourism growth. Priorities for the upcoming year include defending average room rates, accelerating the conversion of operating profit into operating cash flow, returning Hotel Suisse to net profitability, and reducing currency exposure within the Radisson Hotel Kandy joint venture. The Group also aims to broaden its source market and distribution mix, with a particular focus on extending the length of stay in the Indian market and recovering share in European segments.
The Chairman reiterated the importance for Sri Lanka to transition from a volume-alone tourism model to one that delivers both volume and value, supported by sustained investment in infrastructure and effective marketing.
Commitment to Corporate Governance and Stability
The Annual Report reaffirms CHC’s commitment to robust corporate governance practices, ensuring compliance with CSE Listing Rules and best practices. The Group’s strengthened balance sheet and prudent debt management position it well to navigate future uncertainties and deliver sustained value to shareholders.
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