Hotel Developers (Lanka) Ltd (HDL), the state-owned enterprise and owner of the iconic Hilton Colombo, announced a significant financial turnaround, recording a profit after tax of Rs.48.5 million for the financial year ended 2025, marking the company’s first return to profitability, since 2017.
Commenting on the performance, Chairman Pravir Samarasinghe described the result as a defining milestone.
“The 2025 financial year marks a pivotal moment in the company’s journey. Our return to profitability is the direct outcome of the successful transformation of our business through a disciplined strategy, unwavering operational focus and consistent execution across every level of the business,” he said.
Revenue remained resilient at Rs.5.38 billion (2024: Rs.5.39 billion), while gross profit rose to Rs.2.90 billion, from Rs.2.68 billion, driven by higher the occupancy and operational improvements.
The EBITDA increased to Rs.1.22 billion, from Rs.872 million and the operating profit more than doubled to Rs.746 million, compared with Rs.311 million in 2024.
Despite the finance costs of Rs.623 million, the company benefited from the refinancing initiatives undertaken during the year, which are expected to lower the future borrowing costs and strengthen the cash flows going forward.
Total comprehensive income increased to Rs.91.9 million, supported by a revaluation surplus.
The improved performance reflects the successful completion of a comprehensive refurbishment of rooms in late 2024, restoring the hotel’s full room inventory of 368 rooms for the first time since 2015.
The upgrade significantly enhanced the property’s product offering, reinforced its competitive positioning and contributed directly to the stronger operating results recorded in 2025.
Performance was further supported by the robust leisure demand during the peak holiday seasons and major events, with a positive momentum anticipated to continue into 2026.
The company also expects a gradual recovery in the corporate, group and MICE segments, underpinned by the resilient business travel demand and improving market confidence.
Sri Lanka’s tourism sector delivered a record performance in 2025, with international tourist arrivals rising 15.1 percent year-on-year to 2.36 million, surpassing the country’s previous record set in 2018. This growth, driven by stronger traveller confidence, improved air connectivity and sustained destination marketing, provided a highly favourable operating environment for the hospitality industry.
Looking ahead, the company remains cautiously optimistic, supported by a stable macroeconomic environment and the ongoing International Monetary Fund-backed reforms.
The government initiatives—including the development of convention facilities in Colombo Port City and airport capacity expansion—are expected to enhance Sri Lanka’s competitiveness, particularly in the MICE tourism and high-value segments such as destination weddings.
Building on a strengthened operational foundation and an improved financial position, the company is confident in its ability to sustain this growth trajectory and deliver long-term value to its shareholders.
