Lighthouse Hotel : Annual Report for the year ended 31st March 2025

About this update from Lighthouse Hotel Plc

THE LIGHTHOUSE HOTEL. PLC At Jetwing Hotels, our legacy is one of heartfelt hospitality, shaped for over fifty years by the enduring family values of passion, humility, integrity, and tenacity. These values continue to guide the way we welcome the world to our island home, with our legendary Sri Lankan hospitality, genuine warmth, and a commitment to meaningful experiences. From the moment you arrive, greeted by smiling faces and a heartfelt "Ayubowan", our promise is to ensure you feel right at home. INDEX Overview About Us 03 Our Hotels 05 Financial Highlights 06 Chairman's Letter 09 Management Discussion and Analysis Operating Environment 10 Group Financial Review 14 Sustainability Review 18 Stewardship Risk Management 22 Corporate Governance 32 Board of Directors and their Profiles 50 Remuneration Committee Report 55 Audit Committee Report 56 Related Party Transactions Review Committee Report 58 Nominations and Governance Committee Report 59 Annual Report of the Board of Directors 61 on the Affairs of the Company Statement of Directors' Responsibilities 66 Financial Reports Independent Auditor's Report 68 Statement of Financial Position 74 Statement of Profit or Loss 75 Statement of Comprehensive Income 76 Statement of Changes in Equity 77 Statement of Cash Flows 79 Notes to the Financial Statements 80 Annexes Related Companies which had Transactions with the Company 127 Names of the Directors of the Related Companies 130 which had Transactions Information to Shareholders and Investors 132 Ten Year Summary 136 Real Estate Holdings of the Group 138 Recurrent Related Party Transactions 139 Corporate Information 140 Notice of Meeting 141 Form of Proxy 143 About Us Nestled along Sri Lanka's southern coastal belt, The Lighthouse Hotel PLC is home to a collection of properties, each offering its own expression of our legendary Sri Lankan hospitality. Jetwing Lighthouse, A Luxury Reserve, is the iconic landmark in Galle - a visionary creation by the legendary Geoffrey Bawa. With its timeless blend of elegance and coastal charm, it continues to stand as the flagship of the collection. Tucked inland, Jetwing Kurulubedda offers a quiet jungle retreat, with private spaces that merge seamlessly with nature. Hotel J Unawatuna offers a relaxed and affordable stay, ideal for discovering the southern coastline at your own pace. In April 2025, the portfolio further expanded with the acquisition of Hotel J Ambalangoda (Dream Beach Resort Pvt Ltd), a vibrant beachfront escape now under the umbrella of The Lighthouse Hotel PLC. xx 5 Jetwing Lighthouse, A Luxury Reserve The iconic landmark of Galle now stands proudly among the most luxurious retreats in the Jetwing portfolio - the Jetwing Luxury Reserves. From the stairway that tells a tale of history to open spaces with panoramic views, the design essence of world-renowned architect Geoffrey Bawa is felt from the moment you arrive. Resting atop a promontory on the scenic southern coast, just minutes from the historic Galle Fort, Jetwing Lighthouse features 5 themed suites and 80 luxury rooms, world-class restaurants and bars, a tranquil spa, and picturesque venues for unforgettable events, making it the perfect luxury respite on Sri Lanka's southern shores. Jetwing Kurulubedda Tucked away in a quiet corner in Galle, Jetwing Kurulubedda is a secluded retreat that blends gently into its lush, rural surroundings. Its name, meaning forest of birds, hints at the natural tranquillity that defines the experience, a setting of mangroves, paddy fields, and quietude. With just six private dwellings, including two with plunge pools, the hotel is designed for intimate escapes and peaceful indulgence. Impeccable service, refined dining, and the gentle rhythms of nature come together to create a sanctuary where time slows, and simplicity is elevated into understated luxury. Hotel J - Unawatuna Tucked away in the buzzing town of Unawatuna, Hotel J is a cosy coastal escape offering comfort and convenience to the budget-conscious traveller. Just a short stroll from one of Sri Lanka's beloved beaches, the hotel features 31 rooms and 22 beds, perfect for families or friends on the go. With a pool to unwind in, a restaurant and bar serving tasty, value-for-money meals, and a location at the heart of it all, Hotel J - Unawatuna is the ideal spot for sun, surfing, and southern adventure without breaking the bank. The Lighthouse Hotel PLC | Annual Report 2024/25 Overview 6 Financial Highlights Performance for the year ended 31 March 2025 2024 Revenue LKR '000 1,457,675 1,360,170 Earnings before interest, tax, depreciation & amortisation (EBITDA) LKR '000 470,683 399,274 Profit/(Loss) before tax LKR '000 359,694 264,122 Profit/(Loss) after tax LKR '000 233,239 175,885 Earnings/(Loss) per share LKR 5.07 3.82 Return on Equity % 8 6 Financial Position as at 31 March Total Assets LKR '000 4,309,689 3,994,176 Total Debt LKR '000 146,901 243,509 Total Equity LKR '000 3,238,553 2,930,283 Number of shares in issue No. 000s 46,000 46,000 Net Assets per share LKR 70.40 63.70 Debt/Equity % 5 8 Debt/Total Assets % 3 6 Current Ratio 1.02:1 0.87:1 Quick Asset Ratio 0.94:1 0.81:1 Market/Shareholder information Market price per share as at 31 March LKR 58.10 37.90 Market Capitalisation LKR '000 2,672,600 1,743,400 Value added for the year ended 31 March To Government as Income Tax LKR '000 126,454 88,237 To Employees LKR '000 296,660 248,996 To Shareholders LKR '000 138,000 - The Lighthouse Hotel PLC | Annual Report 2024/25 7 Financial Highlights Contd. Overview Revenue Earnings/ (Loss) per Share Profit/ (Loss) after Tax Room Nights Occupied The Lighthouse Hotel PLC | Annual Report 2024/25 Chairman's Statement To the shareholders and well-wishers of The Lighthouse Hotel PLC Ayubowan (may you live long)! A question I'm often asked is, "Now that tourist arrivals are on the rise, are we attracting the right kind of tourists?" My answer tends to vary - depending on the framing of the question, the time I have to answer it, or simply my mood. But it is a question that has lingered in my mind for many years: who exactly is the right tourist? And how many of them can our island truly accommodate in a single calendar year, without compromising the very natural and cultural beauty we are trying to share with the world? If we chase mere numbers, will we fall into the trap of over-tourism, damaging the paradise we call home? If we continuously compete on price alone, will we erode the premium value of our destination? And, just as importantly, will foreign investors have confidence in Sri Lanka's tourism potential when evaluating the financial performance of many public listed hotels in the country. In my view, the right tourist is one who respects our people, values our environment, and contributes meaningfully to our economy. At a time when Sri Lanka is more politically stable and economically hopeful than it has been in years, I believe the moment is now - or never - to act. We must work hand in hand, across both public and private sectors, to attract the kind of traveler that will elevate our island from a 3-star reality to the 5-star potential we so deeply deserve. Reflecting on the past financial year, I do so with sincere gratitude. Your company continued its steady recovery, building on the strong foundation laid in the previous year, and moving ahead with renewed purpose and confidence. For the financial year ended 31st March 2025, revenue grew by 7% to LKR 1.45 billion, while profit from operations increased by 18% to LKR 470.68 million. Most notably, net profit rose by 33% to LKR 233.24 million. These achievements are a testament to the discipline of our leadership, the energy of our teams, and the loyalty of our guests and partners. I am also pleased to share that shortly after the conclusion of the financial year, your company successfully completed the acquisition of Dream Beach Resorts Pvt Ltd, a prime beachfront property along the southern coastline. Previously operated as a limited-service hotel under the Hotel J brand of Jetwing Hotels, this property is now set to undergo a comprehensive renovation, after which it will be relaunched as a full-service, 3-star hotel under Jetwing Hotels' Select Hotels segment. With this addition, The Lighthouse Hotel PLC continues its strategic evolution into a stronger holding company with a growing, diversified portfolio. As always, we remain committed to the principles of responsible tourism. Our six-pillared sustainability framework continues to guide our operations and investments, ensuring that our growth is both mindful and meaningful. Whether through energy conservation, community partnerships, or nature-positive initiatives, our focus is to leave a lasting, positive impact on the destinations we call home. I encourage all of you to visit our hotels and personally experience the measures we have put in place to honour this commitment. None of our progress would have been possible without the collective effort of our stakeholders. I extend my sincere thanks to the Board of Directors, our managing agents Jetwing Hotels Ltd., our financial partners, tour operators and travel agency partners, suppliers, and most importantly, our guests. My heartfelt appreciation also goes to the passionate and hardworking teams of Jetwing Lighthouse, Jetwing Kurulubedda, and Hotel J - Unawatuna, who continue to uphold the values and service standards we proudly stand for. As we begin this new financial year, I remain both hopeful and committed. I truly believe we have the opportunity to shape a future for tourism in Sri Lanka that is not only economically empowering for our nation and its people, but also deeply respectful of our natural heritage and cultural identity. If we stay the course - guided by sustainability, driven by excellence, and united in purpose - we can position Sri Lanka as a benchmark for the world: a living case study of how tourism, when done right, can transform a country. As I have said before, the time is now. And we must act - decisively, urgently, and together Blessings, Hiran Cooray Chairman The Lighthouse Hotel PLC 03 rd June 2025 Management Discussion and Analysis 10 Operating Environment The Global Economy The year 2024 has been a pivotal period for the global economy, marked by a blend of cautious optimism and persistent challenges. The world economy experienced a growth rate of approximately 2.8%, slightly lower than the previous year's 3.0%, as reported by the World Economic Outlook published by the IMF. This modest growth was unevenly distributed across regions, with advanced economies facing more significant hurdles compared to emerging markets and developing economies. Inflation continued to be a central theme throughout 2024, with global inflation rates projected to decline from 6.9% in 2023 to 5.5% in 2024. The efforts of central banks to loosen monetary policy, coupled with stabilizing international commodity prices, contributed to this disinflationary trend. However, core inflation was expected to decline more gradually, with a return to target levels anticipated by 2026. Advanced economies saw growth rates slow from 1.5% in 2023 to 1.2% in 2024, as the impact of previous policy tightening continued to take effect. The United States managed to maintain a growth rate of around 1.8%, while Japan's growth hovered at 1.5%. Europe faced more pronounced slowdowns, particularly in Germany and the United Kingdom, where economic activity was dampened by ongoing geopolitical tensions and trade disruptions. Emerging market and developing economies fared relatively better, with growth rates stabilizing at around 4.0% in 2024. Asia, especially China and India, continued to be the engines of global economic activity, with growth rates of 5.2% and 6.0% respectively. These regions benefited from robust domestic demand and improved export performance, despite the challenges posed by global trade disruptions. The global economic landscape in 2024 was also shaped by concerns over geoeconomic fragmentation and disruptions to trade, particularly in commodities. These disruptions had the potential to affect commodity prices, economic activity, and the transition to green energy. Amidst this backdrop, the World Economic Forum emphasized the importance of international cooperation and sound policymaking to navigate the unpredictable road ahead. Economists remained divided on the prospects of a global recession, with opinions split on the likelihood of such an event in 2024. As the year progressed, the global economy demonstrated a capacity to adapt to changing circumstances, including shifts in business and industry models due to competitive geopolitical and geoeconomic environments. The focus for global leaders was to steer a path through these developments, emphasizing inclusive growth that could sustainably improve the lives of millions around the world. In summary, the year 2024 was characterized by cautious growth, declining inflation, and regional divergences. The global economy's ability to navigate these challenges will set the stage for future economic trends and the overall health of the world's financial systems. Global Tourism The year 2024 has been a remarkable period for global tourism, marking a significant resurgence to pre-pandemic levels. International tourist arrivals surged to an estimated 1.4 billion, reflecting a 99% recovery compared to 2019 and an 11% increase over 2023. This resurgence is attributed to the unleashing of pent-up demand, improved air connectivity, and the robust recovery of Asian markets. International Tourist Arrivals The UNWTO forecasts a full recovery of international tourism by the end of 2024, with initial estimates suggesting a 2% growth above 2019 levels. This optimistic outlook is, however, tempered by the pace of recovery in Asia and ongoing economic and geopolitical risks. South Asia has shown remarkable resilience, recovering 87% of its pre-pandemic tourism levels, while North-East Asia lags at 55%. The Lighthouse Hotel PLC | Annual Report 2024/25 11 Operating Environment Contd. Management Discussion and Analysis International Tourist Arrivals by Region The global tourism industry's growth is buoyed by an 18% increase in travel and tourism business, marking the highest point since the pandemic. Hotel bookings and travel businesses are expected to reach new heights, signaling a prosperous time for the industry. In summary, the year has been marked by a strong recovery trajectory for global tourism, driven by consumer confidence and the reopening of borders. The industry's adaptability to changing travel patterns and its response to global challenges will continue to shape its success in the forthcoming years. As we look ahead, the full recovery of global tourism appears within reach, promising renewed opportunities for destinations worldwide. The Sri Lankan Economy In 2024, Sri Lanka's economy began to show tangible signs of recovery following two years of severe contraction. The country recorded a real GDP growth rate of 5.0%, reflecting a rebound driven by improvements in industrial activity, services, and a modest recovery in agriculture. The industrial sector led the way with an impressive 11.0% growth, supported by increased manufacturing output and a revival in construction. The services sector, which remains the largest contributor to GDP, grew by 2.4%, buoyed by a gradual return of tourism and improved performance in transport and financial services. Agriculture, though still facing structural challenges, managed a 1.2% growth. One of the most significant achievements in 2024 was the successful containment of inflation. After peaking in previous years due to supply shocks and currency depreciation, inflation steadily declined throughout the year. This was largely due to GDP tighter monetary policy and improved supply conditions. The Central Bank of Sri Lanka adopted a single policy interest rate framework, enhancing transparency and policy effectiveness. As inflationary pressures eased, interest rates were gradually lowered, which helped stimulate credit growth and investment without destabilizing the economy. The exchange rate also showed signs of stabilization. The Sri Lankan Rupee remained relatively steady against major currencies, supported by improved foreign exchange inflows from tourism, remittances, and exports. The Central Bank's prudent reserve management and reduced reliance on foreign borrowing contributed to this stability. On the fiscal front, the government made progress in aligning revenue and expenditure, although public debt levels remained high. Structural reforms in the banking sector and public finance management were initiated to strengthen long-term resilience. Despite these positive developments, challenges persisted. Unemployment, particularly among youth and informal workers, remained elevated. Poverty and inequality, exacerbated by the previous economic crisis, continued to pose significant social risks. The Lighthouse Hotel PLC | Annual Report 2024/25 Management Discussion and Analysis 12 Operating Environment Contd. Overall, 2024 marked a year of cautious optimism for Sri Lanka. While macroeconomic indicators improved and confidence began to return, sustained reforms and inclusive growth strategies will be essential to ensure long-term stability and prosperity. Sri Lankan Tourism In 2024, Sri Lanka's tourism sector experienced a strong resurgence, marking a significant milestone in its post-crisis recovery. The country welcomed approximately 2.1 million international tourists, reflecting a 38% increase compared to 2023. This growth was driven by improved global travel conditions, strategic marketing campaigns, and enhanced air connectivity. The tourism industry generated an estimated USD 3.17 billion in revenue, a substantial 53.2% increase from the previous year, underscoring its critical role in the national economy. Annual Tourist Arrivals/Tourism Earnings The first half of the year saw particularly strong performance, with 1.01 million arrivals, a 61.6% increase over the same period in 2023. January and February recorded the highest monthly growth rates, more than doubling the figures from the previous year, thanks to peak season travel. However, growth moderated in the middle of the year, with June showing the lowest increase, reflecting seasonal travel patterns and competition from other destinations. Tourist Arrival by Country of Residence 2024 Europe remained the dominant source region, accounting for 52.8% of total arrivals, followed by the Asia-Pacific region at 39.3%. India led as the top individual source market, contributing 18.3% of total tourist arrivals, highlighting the importance of regional proximity and strong bilateral ties. Tourist spending also improved, with the average daily expenditure per tourist reaching USD 181.15. Investments in tourism infrastructure and accommodation continued, with several new projects approved, further enhancing the sector's capacity and appeal. Despite these gains, the industry still faces challenges in returning to pre-crisis levels, particularly when compared to 2018 figures. Issues such as global economic uncertainty, evolving travel preferences, and regional competition continue to influence performance. Nevertheless, 2024 marked a year of renewed optimism for Sri Lanka's tourism sector, laying a strong foundation for sustained growth in the years ahead. The Lighthouse Hotel PLC | Annual Report 2024/25 Spaces that curate moments of quiet perfection. Management Discussion and Analysis 14 Group Financial Review REVENUE The Lighthouse Hotel PLC experienced significant financial performance during the year under review, showing significant improvement compared to the previous year. This success was largely driven by the substantial increase in tourism within the country, which acted as a key catalyst for our growth. By implementing extensive and targeted sales and marketing efforts aimed at our key markets, the group successfully capitalized on the positive national tourism trends. Additionally, the property's iconic location provided a natural competitive advantage, while continuous enhancements in service standards and investments in product offerings received positive feedback from patrons, enabling the property to stay ahead of the growing competition. The Group achieved total revenue of LKR 1,458 Mn during the financial year under review, compared to LKR 1,360 Mn in the previous period. The group room revenue increased by 13%, primarily due to an 18% rise in the average room rate, despite a slight reduction in occupancy. The Company generated 52% of the total room revenue for the financial year during the period from December 2024 to March 2025. The group revenue increase occurred despite the Sri Lankan rupee appreciating by 3% against the US dollar compared to the previous year. The hotel had a mix of 30% Sri Lankan and 70% international travelers during the period under review. The group's occupancy rate stood at 57% for the financial year. During the financial year under review, food and beverage income decreased by 5% compared to the previous period, primarily due to changes in the meal basis booked. Hotel J - Unawatuna operated for the full financial year, which contributed revenue amounting to LKR 83 Mn to the Group. Occupancy Revenue Composition 2025 EXPENSES During the period under review total expenses excluding finance cost and exchange gain on USD loans have increased by 2% to LKR 1,097 Mn from LKR 1,071 Mn in the previous period. The slight rise in expenses is mainly attributed to the reduction in cost of sales (11%), which has been counterbalanced by the increase in administrative costs (2%) and payroll costs (19%). The administrative costs were positively affected by the decrease in electricity tariffs during the year. The reduction in the cost of sales was primarily due to lower prices. Depreciation for the year amounted to LKR 98 million. Expenses Composition 2025 The Lighthouse Hotel PLC | Annual Report 2024/25 15 Group Financial Review Contd. Management Discussion and Analysis EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION (EBITDA) The Group has reported an EBITDA of LKR 471 Mn for the period under review compared to LKR 399 Mn was achieved during the previous period. The increase in EBITDA is primarily due to the increase in revenue and average room rates resulting in higher flow through during the period under review. Profit/ (Loss) before Tax EBITDA PROFITABILITY The Group recorded a Profit before tax of LKR 360 Mn during the year under review compared to Profit before tax of LKR 264 Mn during the previous period. The increase in Profit before tax is primarily due to the increase in revenue. Further, the finance costs have been reduced substantially by LKR 27 Mn mainly due to the significant decrease in interest rates. Income tax charge for the year has increased to LKR 126 Mn compared to LKR 88 Mn in the previous year mainly due to income tax being charged at the rate of 30% of the taxable profits. Profit after tax of the Group amounted to LKR 233 Mn compared to Profit after tax of LKR 176 Mn achieved in the previous period. STATEMENT OF FINANCIAL POSITION The Group reported a financial position as at 31st March, 2025 with Total Assets amounting to LKR 4,310 Mn compared to LKR 3,994 Mn in the previous period. During the year under review, Property, Plant and Equipment additions amounted to LKR 72 Mn and the surplus on revaluation of land amounting to LKR 331 Mn. As at 31st March, 2025 the Group gearing level reduced to 5%. SHAREHOLDERS' FUNDS Shareholders' funds as at 31st March, 2025 increased to LKR 3,239 Mn from LKR 2,930 Mn in the previous period. The Group's net assets per share as at 31st March, 2025 stood at LKR 70.40 per share. CASHFLOW STATEMENT Cash position of the Group as at 31st March 2025 increased to LKR 13 Mn compared to negative LKR 61 Mn last year. Cash flows from operations generated LKR 350 Mn. Cash flows used in investing activities amounted to LKR 94 Mn. Investing activities included investment made in units amounting to LKR 179 Mn. The net cash flows used in financing activities amounted to LKR 183 Mn due to repayment of the loans and dividend payment. The Lighthouse Hotel PLC | Annual Report 2024/25 Spaces where timeless artistry and history come to life. Management Discussion and Analysis 18 Sustainability Review Guided by the visionary philosophy of our late founder chairman, Herbert Cooray, The Lighthouse Hotel PLC upholds the belief that true hospitality flourishes in harmony with local communities and the natural environment. Across all our properties, we are committed to minimizing our environmental footprint while maximizing our social impact, fostering a symbiotic relationship with the land and its people. Sustainability is not merely a guiding principle - it is the cornerstone of our operations. Building upon Jetwing Hotels' robust and inclusive Sustainability Strategy, we focus on six pivotal areas of impact to drive meaningful change across every facet of our business. During the financial year under review, we strengthened our approach to align with the ever-changing global landscape. This updated strategy ensures our resilience in environmental stewardship, societal welfare, and business continuity, preparing us to meet emerging challenges with adaptability and resolve. The strategy emphasizes six areas: climate action, resource efficiency, heritage stewardship, thriving community, empowered family, and impact sourcing. At The Lighthouse Hotel PLC, we recognize that a healthy environment is essential not only for our long-term success but also for the well-being of the planet we call home. Guided by an unwavering commitment to protect and nurture the natural world, we meticulously monitor our environmental impact and adopt responsible resource management practices to foster healthier ecosystems. Through innovative approaches to water conservation - such as implementing advanced treatment and reuse strategies - we have significantly alleviated stress on this vital but limited resource. Complementing these efforts is our robust solid waste management system, which ensures responsible disposal through recycling, composting, and biodigesters. In our quest to combat climate change, we continue to actively reduce energy consumption with targeted efficiency measures while increasing our reliance on renewable energy sources, such as solar power. During this financial year, we expanded our solar photovoltaic (PV) capacity at Jetwing Lighthouse by adding 75 kilowatts (kW) to our existing 125 kW system. To further our commitment to sustainable travel, we partnered with ChargePRO to establish an electric vehicle charging unit at Jetwing Lighthouse, enabling our guests and associates to embrace zero-emissions transportation with ease. Our achievements in sustainability have garnered global recognition. With the recent expansion of our solar PV systems, Jetwing Hotels has been honored with several prestigious awards, including the Regional and Global Awards for Climate Action from the International Centre for Responsible Tourism (ICRT), as well as the Gold Award for Climate Action from the Pacific Asia Travel Association (PATA). The Lighthouse Hotel PLC remains dedicated to consistently setting industry-leading standards that transcend internal policies. Beyond compliance with local regulations, at Jetwing Lighthouse, we have adopted an Environmental Management System certified to the rigorous ISO 14001:2015 standard. This reporting year, we further solidified our commitment to sustainability by successfully renewing Travelife's Gold certification for the next two years, affirming our efforts to uphold global environmental and social responsibility benchmarks. Jetwing Lighthouse also received the Platinum 'Sustainability Performance Certificate' from the PROMISE Project for successfully achieving waste minimization and resourced savings during the project period. Funded by the European Union (EU) SWITCH Asia Programme - PROMISE project aims to prevent leakage of wastes into the Lakshadweep Sea from tourism industry, in line with Sustainable Consumption and Production approach. At the core of our operations lies a resolute commitment to heartfelt service, deeply rooted in our core family values: passion, humility, tenacity, and integrity. These principles distinguish us in the hospitality industry, empowering our associates to deliver outstanding experiences across our portfolio of properties. As we recognize our associates as our most valuable asset, we remain steadfast in cultivating a work environment that prioritizes their well-being and fosters their professional growth. Our robust policies and practices emphasize key areas, including human rights, health and safety, equitable remuneration, effective grievance resolution, and a zero-tolerance policy against child abuse. These measures ensure that our associates thrive both personally and professionally, embodying the Company's enduring legacy of legendary Sri Lankan hospitality. This strong people-centric approach not only reinforces our position as a preferred employer within the industry but also underscores our holistic dedication to sustainability-fostering a harmonious balance between environmental stewardship, community empowerment, and the well-being of our team. The Lighthouse Hotel PLC | Annual Report 2024/25 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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