Maldivian resort fire damages yet to estimate: Aitken Spence

A fire has broken out at Aitken Spence-owned, Adaaran Select Hudhuran Fushi resort (Adaaran Select) in North Male atoll recently, injuring five people and damaging many properties on the island, according to media reports from the Maldives.

According to the Maldivian police, four tourists, a Brazilian woman, a Chinese man and woman and an eight-year-old Chinese child and a local sustained various burn injuries but their condition was not serious.

In addition, 17 water villas were burnt beyond use, of which, the damage has not yet been estimated by the company, according to Aitken Spence Hotel Holdings PLC (Aitken Spence) Managing Director S.M. Hapugoda.

“However, we are currently working with our insurers to claim the damages,” he said.

According to Hapugoda, the cause for the fire is still being ascertained by the police.

Asked if the resort is now temporarily closed, he said, “No, it’s in operation and the bookings are being done as usual as only 17 water villas have been damaged. We have more than 50 water villas and 195 rooms.”

Adaaran Select, the four-star resort is the second largest resort operating under the Adaaran brand. The resort, which is situated in close proximity to Male on a 78-acre leasehold land, has a building area of 166,836 square feet.

ADS Resorts (Pvt.) Limited, the management company of the resort—a fully-owned subsidiary of Aitken Spence—operates with an asset base of Rs.1.4 billion.

Under the brand ‘Adaaran Resorts’ Aitken Spence operates over 600 rooms in the Maldives in four islands including three properties with water villas. Maldivian operations contribute significantly to the firm’s bottom line.

Despite the increase in goods and services tax from 6 percent to 8 percent by the Maldives government, effective from January, the revenue from the Maldivian operations rose by 23 percent.

During the financial year ended March 31, 2013, Aitken Spence observed an increase in its average room rates in the Maldivian operations, while the average occupancy improving to 89 percent.(

DK)