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Ceylon Hotels Corporation PLC Annual Report 2017/18 Endless Splendour

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Ceylon Hotels Corporation PLC Annual Report 2017/18 Endless Splendour Ceylon Hotels Corporation PLC Annual Report 2017/18 Endless Splendour Ceylon Hotels Corporation PLC Annual Report 2017/18 Corporate Information Name of the Company Internal Auditors Ceylon Hotels Corporation PLC Ernst & Young Advisory Services (Pvt) Limited 201, De Saram Place, Colombo 10 Registration No P.B. 3283 Lawyers F J & G De Saram Legal Form 216, De Saram Place, Colombo 10 A public limited liability company listed in the Colombo Stock Exchange Bankers Bank of Ceylon Directors People’s Bank Mr Sanjeev Gardiner Commercial Bank of Ceylon PLC Mr Lakshman Samarasinghe Hatton National Bank PLC Mr Priyantha Maddumage Mr Mangala Boyagoda E Mail Mr Kuvera De Zoysa [email protected] Mr Ajith Devasurendra Mr Ranil Pathirana Websites Mr Wasantha Wimalaweera www.ekhohotels.com Mr Kamantha Amarasekara www.chcresthouses.com Mr Shalike Karunasena www.queenshotel.lk www.hotelsuisse.lk Registered Office 327, Union Place, Colombo 02 Secretaries Accounting Systems Secretarial Services (Pvt) Limited Level 3, No. 11, Castle Lane, Colombo 04 Registrars Accounting Systems Secretarial Services (Pvt) Limited Level 3, No. 11, Castle Lane, Colombo 04 Auditors KPMG No 32A, Sir Mohamed Macan Makar Mawatha, Colombo 03 Designed & produced by Endless Splendour Spanning across a rich legacy of over five decades, your Company possesses a vibrant portfolio which offers great variety, with a range of properties strategically positioned across key tourist destinations, thus catering to a wide range of clientele. It’s no wonder our guests seek us out time and time again, as they experience our rich and bountiful heritage, coupled with the host of opportunities our locations present. Despite our widespread acclaim, we are not simply satisfied with the way things are – we envision a future of perfection and unparalleled quality across all our operations. That is why we are constantly enhancing and refining ourselves, in order to unlock our true potential. We’re engaging in continuous improvement, as we look beyond where we are. Welcome to Ceylon Hotels Corporation PLC. We’re building a legacy of endless splendour. Content 10 The Group at a Glance 11 Group Structure 12 Financial Highlights 13 Chairman’s Review 16 Board of Directors 18 Operations Review 20 Annual Report of the Board Directors on the Affairs of the Company 25 Statement of Directors’ Responsibility for the Preparation of Financial Statements 26 Corporate Governance 31 Report of the Remuneration Committee 32 Report of the Audit Committee 33 Related Party Transactions Review Committee 36 Independent Auditors’ Report 40 Statement of Profit or Loss and Other Comprehensive Income 42 Consolidated Statement of Financial Position 44 Statement of Changes in Equity 47 Consolidated Statement of Cash Flows 49 Notes to the Consolidated Financial Statements 101 Investor Information 104 Five Year Summary 105 Notice of Annual General Meeting 106 Notes 107 Form of Proxy 2 Ceylon Hotels Corporation PLC Endless Splendour Annual Report 2017/18 3 Queen’s Hotel Queen’s Hotel is housed in a historical building located across the Kandy Lake and overlooking the temple of the sacred tooth relic. This historical building originally constructed as a residence named the “ Dullawe Walawwa” was designed by Devendra Mulachariya on instructions from King Sri Wickrama Raja Singhe the Last King of Ceylon. Subsequently it was converted into the barracks for the Ceylon Rifle Regiment by the British Military. In 1869 it opened under new management, the Queens Hotel Company, and its name was changed to the Queen’s Hotel. The hotel offers colonial-style accommodation with an outdoor pool, three dining options and free parking on site. Hotel Suisse Ideally located right beside the historic and picturesque Kandy Lake, the 90 roomed well known colonial styled Hotel Suisse, in the 17th century was the residence of the Chief Minister of the Royal Granary. However, in 1818 this property was acquired by the British and occupied by an officer, who named it “Harmby House”. Years later, “Harmby House” was sold to a Swiss lady, Madam Burdayron, who ran it as a guest house. This then was the beginning of the present “The Hotel Suisse”. During the second world war from 1943 to 1945, it was used as the Residence of the South East Asia Command Lord Louis Mountbatten. EKHO Surf At EKHO Surf, you are assured of a tropical Sri Lankan beach experience. Located on a kilometer stretch of soft sand, renowned as ‘the longest stretch of beach’ on the south-west coast of Sri Lanka, edged by the Indian Ocean. EKHO Surf brings together golden sunsets, soft sand and a sprawling lawn with well-appointed rooms and the freshest of seafood, encouraging a truly authentic tropical escape. EKHO Safari A rejuvenating waterfront retreat - EKHO Safari occupies a prime position in Tissamaharama. Scenically located by the ancient “Tissa Wewa” providing undisturbed views of the lake. The Tissamaharama property traces its roots back when it started operation in 1967, now restored to a comfortable and beautifully laid lake view hotel. EKHO Sigiriya Amid the magnificent views of the staggering engineering and design that is Sigiriya, EKHO Sigiriya, sits merely 700 meters away from the rock fortress. The 20 room property ensures elegant Sri Lankan designs and services that showcase local culture, ensures you experience a true Sri Lankan character. EKHO Lake House Built-in 1870 as a circuit bungalow for British Government Agents, the Old Polonnaruwa Rest House and once the Queen of England’s holiday destination in the 1960’s, has now been restored and now renamed EKHO Lake House, Polonnaruwa. Overlooking the panoramic Sea of Parakrama Samudra and offering magnificent views of the historic centre of Polonnaruwa’s UNESCO World Heritage site, of Kingdoms past. EKHO Ella EKHO Ella previously known as “Ella Rest House” has been in existence for more than five decades and is known and patronised mostly by Sri Lankans with its strong connection to both the local market as well as budget travellers to the region. The upgraded product as detailed will premium-position the Hotel as a standalone resort with a new brand affiliation at a strategic location with very few quality accommodation options available in this unique area. EKHO Anbaraa Maldives An upscale resort with a combined inventory of 85 - 100 villas to be developed in Anbaraa island in Vaavu Atoll, Maldives. The resort will be exclusive in nature creating a value proposition to a segment looking for a private getaway island experience with services and experiences unparalleled. OZO Kandy Simplicity worked to perfection. Ideally located adjacent to the historic and picturesque Kandy lake, the 122 roomed hotel with luxury amenities offers you the best way to unwind and stare at the dancing waves of the Kandy Lake. Lake Hotel Spread over three acres of landscaped garden and a ten minute walk to the beautiful EKHO Lake House, lies the second property that formulates the Polonnaruwa Resort Collection, the Lake Hotel. It is set at the edge of the Sea of Parakrama, and is located in the historical city of Polonnaruwa enabling you to spend a peaceful holiday amidst a glorious history. The hotel consists of well- equipped deluxe bedrooms spread across two floors while all offer views of the lake and beyond. 8 Ceylon Hotels Corporation PLC CHC Resthouses The rest houses of Ceylon Hotels Corporation fame are strategically located across the island. These rest houses provide affordable comfort in notable scenic, cultural and religious sites in the island. Weligama Medawachchiya Kithulgala Dambulla Belihuloya Mihintale Pussellawa Ambepussa Habarana Hanwella Awanhala “Awanhala” a trusted Sri Lankan brand that has been synonymous with Sri Lankan food for many generations. The history dates back to 1967, with an origin in Ambepussa - a little town strategically located along Kandy bypass, representing a monumental hospitality arena and an instinctive stop over for all who love Sri Lankan food. On a pursuit to outspread its well preserved culinary know-how, expertise and experiences, “Awanhala” outlets can be presently found in 14 locations across the island. The Group at a Glance SRI LANKA Heritage Collection Dambulla - Rest House EKHO, Sigiriya Medawachchiya - Rest House • Queen’s Hotel Mihintale - Rest House • Hotel Suisse Habarana - Rest House The Lake Hotel, Polonnaruwa EKHO Lake House, Polonnaruwa Brand EKHO • EKHO Surf • EKHO Safari • EKHO Lake House • EKHO Sigiriya • EKHO Ella (Under Refurbishment) • EKHO Anbaraa, Maldives (Under Development) EKHO Ella Hotels, Motels, Resorts & Rest Houses Ambepussa Pussellawa - Rest House - Rest House Kithulgala EKHO Safari, Tissa • OZO - Kandy • Dambulla - Rest House Hotel Suisse, Kandy • Lake Hotel • Mihintale EKHO Surf, Bentota OZO, Kandy • Kithulgala • Ambepussa Hanwella Queens Hotel, Kandy - Rest House • Belihuloya • Hanwella Weligama Bay Inn Belihuloya - Rest House • Pussellawa • Weligama • Medawachchiya Bay Inn MALDIVES • Habarana Vaavu Atoll (under development) Anbaraa Maldives Awanhala ‘Awanhala’ outlets can be found in 14 locations across the island 10 Ceylon Hotels Corporation PLC Endless Splendour Group Structure As at 31st March 2018 Ceylon Hotels Corporation PLC EKHO Lake House, Polonnaruwa CHC Foods Ceylon Holiday United Hotels 16.11% Kandy Hotels Co. (Pvt) Ltd Holdings (Pvt) Ltd Co. Ltd (1938) PLC 100% 50% 67.51% 69.54% CHC Rest Houses Tissa Resort Ceylon Hotels Suisse Hotel (Pvt) Ltd (Pvt) Ltd Maldives (Pvt) Ltd (Pvt) Ltd 100% 100% 100% 100% Handhuvaru Ocean Suisse Hotel Holidays
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