African Sun Limited revenue up

Published: 04 July 2017

Listed hospitality concern African Sun Limited (ASL) said its revenues in the five months to May went up by 15 percent compared to last year due to an increase in occupancy to 43 percent from 36 percent in 2016.

The group's managing director Edwin Shangwa said there was growth in rooms sold from all markets with the local market contributions up 21 percent while international and regional markets contributions increasing by 28 percent and 8 percent respectively.

Shangwa told the group's shareholders at an annual general meeting on Friday that competitive rivalry impact on average daily rate (ADR) went down 7 percent to $89 from $96 of last year due to the depressed local market.

"Revenue per available room (RevPAR) increased by 14 percent to $39 from $34 of last year as a result of increased occupancies," he said.

"The increase in occupancy-operating costs was contained to 5 percent in line with revenue and our cost reduction initiatives," he added.

Shangwa noted that the group's Ebitda margin were up at 4 percent in the five-month period up from a negative 3 percent in the same period last year while financing costs were reduced as a result of restructuring and repayment of loans.

"We expect the leisure and conferencing business to drive occupancy in all our hotels during the peak season - from June to November," he said, commenting on ASL's outlook period.

Meanwhile, the hospitality group on Saturday rebranded its Amber Hotel back to Holiday Inn Mutare.

"The launch of this global brand today comes on the back of numerous efforts by government to increase the country's accessibility and capacity to trade within the Sadc region. As we all know, accessibility and trade are catalysts of travel.

"This global brand re-launch in Mutare is our way of preparing ourselves to host regional and international guests as we anticipate increased traffic into the city," Shangwa said

Manicaland Province minister of State Mandi Chimene said the return of the Holiday Inn brand to Mutare placed the city on the global hospitality map.

"Holiday Inn's drive to push and raise quality focusing on brand standards, fire life and safety of the guest, the quality and condition of the product…the tourism and hospitality industry in Mutare will benefit from knowledge and technology transfer from InterContinental Hotels Group," Chimene said.
- dailynews

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