JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 Our Vision and Pledge 1 Consolidated Value Added Statement 132 Hotel Portfolio - Sri Lanka 2 Sustainable Value Chain 133 - Maldives 34 GRI Index 134 MANAGEMENT REPORTS FINANCIAL INFORMATION Group Financial Highlights 46 Annual Report of the Board of Directors 143 Financial Calender 47 Statement of Directors’ Responsibility 148 Group Operational Highlights 47 Independent Auditors’ Report 149 Chairman’s Message 48 Income Statement 150 Group Structure 51 Statement of Comprehensive Income 151 Board of Directors 52 Statement of Financial Position 152 Corporate Governance 54 Statement of Changes In Equity 154 Audit Committee Report 78 Statement of Cash Flows 155 Notes to the Financial Statements 157 MANAGEMENT DISCUSSION & ANALYSIS Investor Information 80 SUPPLEMENTARY INFORMATION Financial Overview 83 Quarterly Income Statement 210 Management Discussion and Analysis 86 Indicative US Dollar Financial Statements Risk Management 92 Income Statement 211 Indicative US Dollar Financial Statements SUSTAINABILITY REPORT Statement of Financial Position 212 Sustainability Report 98 Ten Years Summary - Group 214 Report Profile 98 Group Real Estate Portfolio 216 Stakeholder Engagement Process 100 Directors of Subsidiary Companies 217 Awards, Accolades and Certifications 102 Glossary of Financial Terms 219 Independent Assurance Report 105 Notice of Meeting 221 Our Customers 106 Notes 222 Product and Service Responsibility 110 Form of Proxy 223 Our Team 110 Corporate Information IBC Green Philosophy 119 1 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 OUR VISION We will always be the hospitality trendsetter OUR PLEDGE Flawless I will get it right the first time all the time I will make fact-based decisions using my own insight and experience to evaluate a range of options and arrive at the best possible solution. Caring I will care I will respect and care for people, property and information, and be mindful and considerate of my words and actions, thinking about their consequences for others. Exceptional I will stand out wherever I am I will strive to offer exceptional experiences to our guests, contributing towards the Company and our activities in a significant manner, using the talents and skills that are unique to me. Empowering I will empower I will instill a sense of responsibility in myself and others, in order to deliver the finest care in hospitality in the most satisfying manner, together with the freedom to make independent decisions in the best interests of the Company and of the guests we serve. Green I will be green I pledge to think and act in a socially responsible manner, to understand the best practices of sustainability and to use the knowledge and skills I have acquired to improve and sustain the natural world and its resources, spreading awareness to build a sustainable future. 2 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CINNAMON LODGE Sprawled over 25 acres, Cinnamon Lodge the option of indulging in gourmet organic Habarana is a wonder to behold. Inspired by the creations and in a range of locations from tree-top culture that surrounds it, and at the epicenter dining to a meal with the chef himself. of Anuradhapura, Polonnaruwa and Kandy, the Lodge glorifies and evokes the past of a bygone age. The 131 rooms and 6 suites are shaded by CINNAMON LODGE over 2,000 trees, creating an exclusive hideaway for guests of all ages. The architecture is also GLORIFIES AND evocative of local history, the famous remains of Ritigala, and brings into play, the beautiful views EVOKES THE PAST of the lake and forest. OF A BYGONE Guests can either visit Anuradhapura, the first kingdom of Sri Lanka, the majestic fortress AGE, CREATING of Sigiriya, or the rock temple in Dambulla. Excursions on a wilder theme are also provided with jeep safaris to Minneriya and Kaudulla AN EXCLUSIVE nature reserves or treks along the Ritigala jungle to view the ruins of the 6th century monastery. HIDEAWAY FOR For soothing rituals, the world class spa is well renowned and the pool is also a welcome respite. GUESTS OF ALL AGES. Dining comes in the form of three restaurants that showcase delectable food. Guests also have 3 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 4 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CINNAMON LODGE 5 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CINNAMON LODGE 6 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA TRANZ Up-tempo and embodying a higher level of swimming pool, the lounge and pool bar or dine consciousness, Chaaya Tranz Hikkaduwa lets at the specialty crab restaurant with mouth- guests experience the sun, sand and surf with watering delights. a heavy dose of Southern hospitality. A 100 km away from the metropolitan city of Colombo Chaaya Tranz incorporates the best of shore life, BRIGHT COLOURS spun together with the tastes and culture of a modern town. Whether guests wish to submerge AND A LAID-BACK in the euphoric or experience the bliss of relaxation, Tranz is the place to be. VIBE EPITOMIZE Bright colours and a laid-back vibe epitomise the THE AMBIENCE OF ambience of the hotel. The design and furnishings ensure that guests are in tune with this mood. THE HOTEL. With a 150 rooms that open out to dramatic views of the Indian Ocean, the hotel offers patrons the chance to frolic in the waves as well as snorkel and dive with our professional and certified instructors. Excursions to the famed Galle Fort and the Singharaja rain forest can be organised on request, and guests who prefer rest and relaxation may indulge in the roof-top spa, fresh water 7 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 8 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA TRANZ 9 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA TRANZ 10 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 BENTOTA BEACH HOTEL Situated on the golden beaches of Southern Sri Lanka and designed by Geoffrey Bawa, Bentota THE HOTEL IS Beach Hotel has been based on an ancient Dutch Fort. The hotel is positioned at the point where POSITIONED AT the Bentara River flows into the Indian Ocean, offering scenic views of the ocean and estuary. THE POINT WHERE The 130 rooms and 3 suites are well equipped and provide a romantic view of either the sea or the THE BENTARA river. RIVER FLOWS The specialised sports centre on site provides guests with motorised and non-motorised water INTO THE INDIAN sports activities and excursions such as trips to the turtle hatcheries in Kosgoda, laid-back boat OCEAN, OFFERING rides to the surrounding mangroves, or an hour- long drive to the Dutch Fort in Galle. Guests can SCENIC VIEWS OF relax at the end of an adrenaline filled day with pampering at the spa. THE OCEAN AND ESTUARY. 11 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 12 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 BENTOTA BEACH HOTEL 13 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 BENTOTA BEACH HOTEL 14 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA VILLAGE Stretched out amidst 27 acres of verdant land communities which range from a morning hike overlooking a beautiful lake, Chaaya Village in the Ritigala jungle, to a bullock cart ride in Habarana is located at the heart of Sri Lanka’s Hiriwaduna. cultural triangle in the Anuradhapura District. The hotel consists of 94 superior rooms, 12 deluxe rooms and 2 suites created in a lodge style which DINING IS TRULY give guests the chance to view the serenity of nature, each day more beautiful than the last. And AN EXPERIENCE in communing with nature, the cosy dwellings WITH DIVERSE rest in the middle of thousands of high-rise trees and wildlife that enthrall and excite. POSSIBILITIES Dining is truly an experience with diverse FROM A SOJOURN UP possibilities from a sojourn up in a tree-hut or by the lake. The sunny skies allow for nature IN A TREE-HUT OR walks that will give guests a glimpse of the flora and fauna of the region. The hotel offers a BY THE LAKE. rustic setting studded with star class amenities such as an infinity pool, sporting facilities and an Ayurvedic Health Centre. In keeping with the traditional theme of the area, the hotel also offers five ‘Experience Packages’ which promote sustainability in nature as well as local 15 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 16 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA VILLAGE 17 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CHAAYA VILLAGE 18 JOHN KEELLS HOTELS PLC | ANNUAL REPORT 2013/2014 CINNAMON BEY One and a half hours away from the bustling streets of Colombo lies Cinnamon Bey Beruwela, CINNAMON BEY which is bordered by the bay and the beach. Inspired by the first permanent Arab settlements MAKES DINING A in Sri Lanka in the 10th century, the hotel interior incorporates lattice work and complimentary FORM OF ART WITH hues that pay homage to this history. A WIDE RANGE OF With 200 rooms on offer, the hotel is the epitome of luxury and boasts wide spacious areas in OPTIONS THAT which to relax. The deluxe suites possess private terraces and swimming pools which take luxury to another level. Making dining almost an art INCLUDES AN ICE form, Cinnamon Bey has a wide range of options that includes an ice cream parlour that never CREAM PARLOUR fails to delight the younger patrons. The culinary diversity includes a pizzeria, Japanese, Arabic and THAT NEVER fusion cuisine . Each outlet, 6 in number, offers a myriad tastes and even showcases experience- FAILS TO DELIGHT based dining which is unique to the hotel. Each dining area presents an unforgettable seascape THE YOUNGER for guests to enjoy while their taste buds are satiated.