African Sun Limited revenues up 62pc
Hotel group African Sun Limited says its revenue grew by 62 percent to US$53,2 million in the FY2022 driven by improved occupancy rate.
In a statement, African Sun said the improved performance reflected recovery of domestic and foreign business as the country and the world emerged from the Covid-19 pandemic.
“In United States dollar terms as reported for internal financial reporting, group revenue for the year ended December 31, 2022 amounted to US$53,2 million, a 62 percent growth from prior year. This was on the back of a 15 percentage point increase in occupancy and firmer average daily rates,” said the company.
Occupancy at 46 percent was two percentage points below the 48 percent that was achieved in 2019, the last normal trading year before Covid-19.
It said city and country hotels recorded 58 percent occupancy while the resort hotels, which have not fully recovered from the impact of Covid-19, achieved an occupancy level of 36 percent.
The hospitality segment contributed 98 percent of group revenue while the real estate segment contributed two percent.
African Sun said as at December 31, 2022, in US dollar terms cash and cash equivalents grew by 11 percent to US$11,2 million from US$10,2 million in the prior year. During the third quarter of last year, the hotel group completed the refurbishment of 47 rooms and the kitchen at its five-star Victoria Falls Hotel.
“The group, together with our partner, Meikles Limited, invested approximately US$5 million towards the refurbishment of this property. The group also completed the refurbishment of all 70 rooms at Troutbeck Resort during the last quarter of 2022,” said African Sun.
Meanwhile, work on the Hwange Safari Lodge rooms refurbishment commenced in August 2022 and 56 rooms had already been completed with the remaining 44 expected to be completed this year.
“The refurbishment of the remaining rooms at Great Zimbabwe Hotel, including the conference centre is at an advanced stage and is expected to be complete by mid-year,” it said.
As at December 31, 2022 African Sun had raised US$3 million from the disposal of some of its non-core assets with the proceeds earmarked for the ongoing hotel refurbishment programme.
The hotel group, with presence across Southern Africa, and a history dating back to 1971, boats of properties that also includes Hwange Safari Lodge, Elephant Hills Resort and Conference Centre, Caribbea Bay Resort, Holiday Inn (Harare, Bulawayo, Mutare) and Monopotapa.-herald
