Business hotel group hit with losses of Rs128 million

Tropical Paradise Co Ltd, which operates the island’s popular business hotels Labourdonnais Waterfront Hotel, Le Suffren Hotel & Marina at the Caudan Waterfront and Hennessy Park Hotel through its wholly owned subsidiary, Triamad Co Ltd, has posted losses of Rs128million for the year ending June 30, 2021.

The company had reported a loss of Rs77.5million last year.

Revenues dropped from Rs657million as at end June 2020 to Rs 237million as at end June 2021.

In its Financial Statements just made public, Tropical Paradise explained the hospitality industry continued to be severely affected by the COVID-19 pandemic.

The company is expecting its financial situation to gradually improve during the next financial year with the announcement of reopening of borders without quarantine protocol as from October 2021.

“However, the existing challenges will persist given the uncertainty of the evolution of the pandemic,” it said.

“Going forward, the Group will continue to focus on the cost reduction initiatives implemented during the pandemic whilst maintaining the properties in pristine condition. New marketing strategies have been developed to boost revenue and yield. This, combined with access to banking facilities, should enable the Group to sustain its operations and meet its financial commitments, paving the way towards recovery.”