Asian Hotels and Properties : Annual Report 2023/24

CONSISTENT COMMITMENT

Crcat Boulevard

ASIAN HOTELS AND PROPERTIES PLC

ANNUAL REPORT 2023/2024

Contents

Overview
Our approach to reporting	0 2
About Us	05
A Winning Proposition	06
Performance Highlights (Financial)	07
Value Creation Highlights (Non-Financial)	08

Leadership
Chairperson's Message	10
Board of Directors	13

Operating Context and Strategy
Value creation model	16
Stakeholder Interactions	18
Operating Environment Review	22
Material matters	29
Strategic focus	32
ESG performance	36

Management Discussion and Analysis
Financial capital	42
Manufactured capital	48
Human capital	51
Intellectual capital	61
Social and Relationship capital	68
Natural capital	76
Way forward	88

Corporate Governance and Risk Management
Corporate Governance	92
Board subcommittee reports	131
Risk Management Report	138

Financial Statements
Financial Calendar	148
Annual Report of the Board of Directors	149
Statement of Directors Responsibility	157
Independent Auditors' Report	158
Statement of Profit or Loss	161
Statement of Other Comprehensive Income	162
Statement of Financial Position	163
Statement of Changes In Equity	164
Statement of Cash Flows	166
Notes To The Financial Statements	168

Supplementary Information
Information To Shareholders & Investors	............................214
5 Year Financial Summary - Group	216
5 Year Financial Summary of
Cinnamon Grand Colombo Hotel	217
GRI content index	218
SASB Content Index	227
Assurance on non-financial reporting	228
Glossary of Financial Terms	231
Corporate Information	233
Notice of Meeting	234
Form of Proxy	235

B | ASIAN HOTELS AND PROPERTIES PLC

CONSISTENT COMMITMENT

Here at Asian Hotels and Properties PLC, we believe that true success is derived from unwavering dedication, resounding loyalty and constant improvement. In the year under review, we have persevered through the good times and the challenging times and have gone above and beyond to satisfy the needs of our discerning clientele.

As we take a step towards a new financial year, we are grateful for the unending support of our staff, partners and customers and as we gear up for a new year of triumphs and challenges, we look to our brilliant leadership to manoeuvre the waters with consistent commitment.

Our Approach to Reporting

Welcome to our third integrated annual report

We are pleased to present Asian Hotels and Properties PLC's (the Company) the 3rd integrated annual report, prepared in accordance with the Integrated Reporting Framework of the IFRS Foundation. We have made every attempt to present a fair and comprehensive account of how we forged ahead in a year of recovery and resilience towards achieving our strategic objectives, whilst delivering meaningful value to all our stakeholders.

Sustainability reporting

Sustainability aspects are seamlessly incorporated into the overall reporting structure to better illustrate our value creation process and the resulting outputs and outcomes.

Reporting period

There were no changes to the Company's organisational structure during the financial year 2023/24. Annual reporting cycle for both financial and sustainability reporting cover the twelve months period from 01 April 2023 to 31 March 2024. There are no major restatements of non-financial information reported in the financial year ended 31 March 2023.

Reporting scope and boundary

This Report covers the operations of Asian Hotels and Properties PLC (the Company). The consolidated financial statements cover Asian Hotels and Properties PLC and its subsidiary Trans Asia Hotels PLC. Non-financial reporting covers only the operations of Asian Hotels and Properties PLC/ the Company.

Reporting frameworks

This report follows a structured format based on a combination of mandatory and voluntary reporting frameworks, including the Sri Lanka Financial Reporting Standards (SLFRS), the International Integrated Reporting Framework, and the Global Reporting Initiative (GRI) Reporting Standards. As we enter a crucial phase in non-financial reporting, particularly with Sri Lanka's impending adoption of SLFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and SLFRS S2: Climate- related Disclosures, effective from January 1, 2025, we are initiating steps to align our reporting accordingly. This includes reporting in line with the Hotels & Lodging Sustainability Accounting Standard of SASB, as well as identifying Sustainability Related Risks and Opportunities (SRROs) and Climate-Related Risks and Opportunities (CRROs) relevant to our business.

2 | ASIAN HOTELS AND PROPERTIES PLC

Overview

Leadership

Operating Context

and Strategy

Management

Discussion and

Analysis

Corporate

Governance and Risk

Management

Financial

Information

Supplementary

Information

Key Frameworks and Assurances Adopted

Financial Statements and

Related Disclosures

Reporting frameworks

Sri Lanka Accounting Standards issued by the Institute of Chartered Accountants of Sri Lanka

Companies Act No. 7 of 2007 (as amended)

Listing Rules of Colombo Stock Exchange

Internal Process

Internal Audit Process verifications and assessments conducted by Deloitte Advisory Services (Pvt) Ltd

Internal controls mechanisms

Oversight of the Board Audit

Committee and the Board of

Directors

External Assurance

Independent Auditors' Report by Messrs. KPMG - Chartered Accountants

Non-Financial

Reporting

Reporting frameworks

Integrated Reporting Framework of the IFRS Foundation

Guidelines for Presentation of Annual Reports issued by the Institute of Chartered Accountants of Sri Lanka

Non-Financial Reporting Guideline issued by the Institute of Chartered Accountants of Sri Lanka

Global Reporting Initiative Sustainability Reporting Standards

SASB Standards - Hotels & Lodging Sustainability Accounting Standard

Sustainable Development Goals (SDGs)

Carbon footprint Benchmarks - EarthCheck Pte Ltd - Australia

External Assurance

Independent Assurance Report by Messrs. KPMG - Chartered Accountants on specific sustainability indicators.

Corporate

Governance

Reporting frameworks

Listing Requirements of the Colombo Stock Exchange, including the new Corporate Governance Rules issued in 2023 Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka (2017)*

*Institute of Chartered Accountants of Sri Lanka issued an updated Code of Best Practice on Corporate Governance (2023) in December 2023. The updated Code has been reviewed and will be adopted to the extent of business exigency and as required by the Group.

Internal Assurance

Company governance framework built on applicable regulations and internal best practices.

Internal Audit Process verifications and assessments conducted by Deloitte Advisory Services (Pvt) Ltd

Annual Report 2023/24 | 3

Our Approach to Reporting

Report Navigation

The Management Discussion and Analysis in this Report adheres to the six capitals outlined in the International Integrated Reporting Framework. Matters deemed "material" to the Company's business and operations form the foundation for disclosures. Whenever feasible, the Company's key strategic pillars are connected to the discussions to establish the correlation between strategy and performance.

Capital Inputs

(Page 42)

Financial

Capital

Manufactured

Capital

Human

Capital

Intellectual

Capital

Social and

Relationship Capital

Natural

Capital

Stakeholders

(Page 18)

Shareholders

Employees

Customers

Business

Partners

Government and regulatory bodies

Communities

Strategic Priorities

(Page 32)

Service

Excellence

Revenue Optimisation

Operational excellence and cost optimisation

Talent Management

ESG

Considerations

Forward looking statements

As a part of enhancing our disclosures, some forward-looking statements are integrated into the discussions within the "Way Forward" sections present throughout the non-financial disclosures.

Chairperson's
Message	Page 10
Management
Discussion
and Analysis	Page 42

These forward-looking statements offer valuable insights into the Company's expectations and strategic plans. However, it's important to interpret them cautiously due to the inherent uncertainty in predicting future outcomes, and the possibility that actual results may deviate from projections. Additionally, these forward-looking statements have not undergone review by the Company's auditors.

Board responsibility statement

The Board of Directors of Asian Hotels and Properties PLC holds ultimate responsibility for ensuring the integrity of this Report. We affirm that this Annual Report for the financial year ending 31 March 2024 comprehensively covers all pertinent material aspects and accurately reflects the Company's performance. Furthermore, the Board confirms that the Report has been prepared in accordance with the stipulations of the International Integrated Reporting Framework.

Feedback

We welcome your feedback on our inaugural integrated annual report and are eager to hear how we can improve its readability and relevance. Please share your thoughts and suggestions with us.

Shelton Gunawardane

Finance Manager

Cinnamon Grand Colombo

No.77, Galle Road, Colombo 03

E-mail: [e-mail]

Refer our Report

In PDF

Corporate website

https://www.keells.com/resource/reports/group-annual-reports/Asian-Hotels-and-Properties-PLC.pdf

Scan and read

In print - All Share holders of Asian Hotels and Properties PLC have the option to request a printed version of this Report by submitting a Request Letter.

4 | ASIAN HOTELS AND PROPERTIES PLC

Overview Leadership

About Us

Operating Context

and Strategy

Management

Discussion and

Analysis

Corporate

Governance and Risk

Management

Financial

Information

Supplementary

Information

We curate emotional experiences to

inspire stories

that connect PURPOSE

To bring the best of Sri Lanka to

the world with style and

VISION elegance

Our properties

Cinnamon Grand Colombo

Values

Wellbeing

GreatnessAgility

InclusivityCompassion

Curiosity

Trust

Asian Hotels and Properties PLC Group comprises of two esteemed five-star hotels, Cinnamon Grand Colombo and Cinnamon Lakeside Colombo (Trans Asia Hotels PLC), along with its renovated mall, Crescat Boulevard. Its strength lies in its industry leadership, the support of its ultimate Parent Company, John Keells Holdings PLC, its dedicated and skilled professional team, and its capacity to innovate novel guest experiences.

Cinnamon Hotels and Resorts garners the respect as the foremost leader in Sri Lanka's hospitality industry, drawing on decades of expertise and unparalleled excellence. Amidst fast changing economic landscapes and social vistas in the island, particularly the phenomenal transformation the capital Colombo is experiencing with intensifying competition in hospitality sector, Cinnamon Grand Colombo has remained as one of the most sought-after hotels within Colombo, renowned for its exceptional service and exclusive luxury offerings.

Crescat Boulevard		Cinnamon Lakeside Colombo

One of Colombo's most preferred retail	A premier five-star city hotel in Colombo,
destinations for discerning shoppers with	with its proximity to the Beira Lake and
dynamic shopping experiences and exclusive	picturesque landscaping. Led by a team of
F&B offerings.	hospitality professionals dedicated to
	providing an exceptional guest experience.

Group structure

John Keells Holdings PLC

78.56%

Asian Hotels and Properties PLC

43.41%

Trans Asia Hotels PLC

Annual Report 2023/24 | 5

A Winning Proposition

Affirming the excellence in performance, the Company received following accolades by external evaluators:

World Luxury Hotel Awards 2023

• Best General Manager - Regional Winner Award for Southwest Asia
• Luxury City Hotel - Country Winner, Sri Lanka
• Luxury Urban Hotel - Country Winner, Sri Lanka

South Asian Travel Awards 2023

• Gold Award for the Leading Food and Beverage Hotel of South Asia 2023
• Best Innovative Dining Concept - South West Asia for Nuga Gama
• Best Indigenous/Heritage Cuisine -Asia for Nuga Gama

• Best Luxury Eco- friendly Restaurant - South West Asia for Nuga Gama

Cinnamon Grand Colombo hotel was awarded the following, at the Culinary Art and Food Expo ( 2023) Event - dubbed Sri Lanka's premier and most renowned Food and Hospitality Showcase- .organised by Chef's Guild of Sri Lanka together with the World Association of Chefs Societies (WACS) :

• Most Outstanding Overall Hotel Championship Trophy
• Most Outstanding Overall Hotel Culinary Team
• Most Outstanding Colombo City Hotel Culinary Team

6 | ASIAN HOTELS AND PROPERTIES PLC

Overview

Leadership

Operating Context

and Strategy

Management

Discussion and

Analysis

Corporate

Governance and Risk

Management

Financial

Information

Supplementary

Information

Performance Highlights (Financial)

			2024
Group Operational Performance
Revenue		Rs. Mn	10,772
Results from operating activities	Rs. Mn	612
Profit/(Loss)	before tax	Rs. Mn	212
Profit/(Loss)	after tax	Rs. Mn	78
Dividends paid	Rs. Mn	-
Return on equity (ROE)	%	0.07)
Pre-Tax return on capital employed	%	1.86
(ROCE)
Balance Sheet Strength
Total assets		Rs. Mn	48,381
Total liabilities	Rs. Mn	14,832
Net debt / (Cash)	Rs. Mn	2,284
Total shareholders' funds	Rs. Mn	33,549
No. of shares in issue	Thousands	442,775
Net assets per share	Rs.	67.64
Debt / Equity		Times	0.08
Debt / Total assets	Times	0.05
Investor Information
Market price of share as at 31 March	Rs.	61.00
Market capitalisation	Rs. Mn	27,009
Dividend payout	Rs.	-
Dividend per share	Rs.	-
Dividend yield	Rs.	-
Social Performance
Economic value added	Rs. Mn	6,246
Employee benefit liabilities as of 31 MarchRs. Mn	474

2023

8,417

93

(133)

(333)

-

(0.92)

0.86

45,912

13,674

2,101

32,238

442,775

65.21

0.08

0.05

44.00

19,482

-

-

-

2,875

334

2022

4,095

(407)

(459)

(508)

-

(1.62)

(0.65)

42,509

7,549

1,645

34,959

442,775

71.43

0.06

4.39

37.00

16,383

-

-

-

1,569

344

2021

1,790

(1,913)

(2,370)

(2,244)

-

(5.54)

(6.43)

40,869

6,256

691

34,612

442,775

70.70

0.03

2.54

37.40

16,560

-

-

-

(7)

378

2020

5,560

(28)

199

106

442

(0.15)

0.61

42,582

5,889

(587)

36,692

442,775

74.40

0.01

0.89

29.00

12,840

(9.09)

1.00

3.45

3,014

345

Annual Report 2023/24 | 7

Value Creation Highlights (Non-Financial)

Company

Manufactured capital

Human capital

Social and relationship

capital

Intellectual capital

Natural capital

Room inventory	No.
Property, plant and equipment	Rs. Mn
Capital expenditure	Rs. Mn
Total employees	No.
Female representation	%
Value added per employee	Rs. Mn
Total training investment	Rs. Mn
Total training hours	No.
Training hours per employee	No.
Employee Turnover rate	%
Employee retention rate	%
Workplace injuries	No.
Total suppliers	No.
Payments to local suppliers	Rs. Mn
Global Review Index	%
Net Promoter Score	%
Total investment in community projects	Rs. Mn
Volunteer Hours	No.
Average service length of an employee	Years

Carbon footprint	tCO2e
Carbon footprint per EarthCheck guest night	KgCO2e
Water withdrawn	m3
Water withdrawn per EarthCheck guest night	Litres
Total waste	MT
Landfill waste disposed per Earthcheck Guest night	Kg

2024

501

35,188

494

817

12

1.7

9

56,956

5.9

20

80

17

863

3,752

96

78

5.7

708

9

8,399

18.05

171,440

369

496

0.002

2023

501

33,621

209

783

12

1.5

11

60,925

5.7

17

83

2

777

3,175

96

69

2.4

558

9

7,909

20.12

179,685

435

459

0.004

8 | ASIAN HOTELS AND PROPERTIES PLC