Cinnamon Grand earnings up

The Cinnamon Grand reported appreciable growth earnings in 2007 second quarter up 203 percent to Rs.44 million, aided by strong occupancy levels, brokers said.

This is likely on account of the accommodation provided to the participating contingents of the South Asian Games held during August 2006 and also the Commonwealth Finance Ministers Summit in September, C.T. Smith Stockbrokers said in a report.

In the company’s Asian Hotels Ltd, it was reported that the company’s second quarter net profit was down 46 percent to Rs.233 million and the first half of 2007’s net profit declined 42 percent to Rs.289 million.

“2006 net profit was up 163 percent to Rs.992 million, supported by enhanced contributions from the property development sector,” the report said, adding that revenue in the second quarter of 2007 and first half of 2007 was down 30 percent and 17 percent to Rs.1, 261 million and Rs.1, 990 million.

“The group’s city hotel segment reported a profit after tax of Rs.111 million in 2007 first half, down from Rs.153 million in the 2006 first half. The group’s 358-room city hotel Trans Asia reported a 56 percent slide in net earnings to Rs. 28 million in second quarter 2007, while the first half of 2007 drop was 44 percent to Rs.62 million,” the report said, adding that the under performance was largely due to on going violence in the North and East negatively impacting occupancy levels.