Page 17 - GROUP 3 NAKED HOTEL LIMITED ANNUAL REPORT

CHAIRPERSON’S REPORT

It is with great pleasure that I give this general overview
of the financial and operating performance of Naked Hotel
Limited for the last accounting period; January through to
December 31, 2016. These results are an indication of the
assiduous Directors, Managers, and Staff of our company.
Please note that all monetary values are quoted in ‘000 of
dollars. This year for the first we hosted a nude wedding which
resulted in a 100% occupancy, we are extremely grateful for
such an outcome and look forward to similar occurrences in the
future.

Major Developments

Economic

The Jamaica economic performanc.e for the fiscal year 2016 was mixed and resulted in
both adverse and favourable effects on the financial and operating activities of Naked Hotel
Limited. Some of the key indicators that will be highlighted in this section are the inflation,
exchange, and interest rate of Jamaica.

Jamaica has been experiencing a significant decline in the level of inflation over the past
2 years. In 2015 inflation was stated at approximately 3.7% which fell in 2016 to 1.7%.
Additionally, an all-time low interest rate of 5% was recorded in the year 2016. The downward
trend of both interest and inflation rate provided an accommodating environment for Naked
Hotel to take on new investments and projects of expansion to enhance the quality of services
offered and thus making our hotel top rated among competitors.

Moreover, as our company targets the domestic and international market the significant
decline in the value of our dollar has both detrimental and beneficial effects on our operations.
The devaluation of the dollar will no doubt increase the purchasing power of international guests
but simultaneously limits that of domestic occupants. Therefore, the company has been
considering strategies that will increase the level of international occupants and use the excess
revenues gained to somewhat offset the cost of services provided to the domestic market. This
will result in the overall increase of occupancy for the hotel.

Naked Hotel Limited cannot ignore the upsurge of crime and violence in our nation, and
so we continually improve our security measures and improve technologies to combat negative
effects of crime and safe and secure.

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