The move sans the cost was first announced in the company’s 2011/12 Annual Report.
The addition of 56 rooms will be on the land available within the resort. Once completed, these new rooms will greatly improve operational efficiency and overall profitability of the hotel, Chairman A Rajaratnam said. The latest addition comes hot on the heels of Marawila Resorts completing a refurbishment program, upgrading the facilities. In the first quarter of 2011, the company raised Rs. 245 million via a one-for-four Rights Issue at Rs. 10 each for refurbishment, completed recently.
The investments made in upgrades to the rooms resulted in better rates and occupancies over the winter season. The refurbished ballroom was opened to excellent reviews and has attracted significant interest as a venue for weddings, conferences and seminars.
In FY12, Marawila Resorts Plc saw its revenue rise by 22% to Rs. 256.7 million whilst profit amounted to Rs. 15 million, down from Rs. 19.2 million in FY11. The latter was adversely affected by a charge of Rs. 52.7 million due to the revaluation of the company’s dollar denominated debt following the devaluation of the rupee.