eBusiness Weekly
Michael Tome
Hospitality giant, African Sun Limited, has commenced renovating its prime facilities — Great Zimbabwe (Masvingo) and Caribbea Bay (Kariba) hotels as it positions itself to tap into the projected rise in tourist arrivals as forecasted by global tourism trends.
The refurbishment will bring an inclusive of 75 rooms with a capacity to house 150 beds, further enhancing the group’s capacity to earn more foreign currency.
African Sun’s hotels renovations programme is in line with international standards, which directs them to comply with franchisors brand standards.
In its December 2018 financial statement, the hospitality group indicated that the developments aim to leverage on international holidaymakers traffic that is poised to grow in line with estimated tourism trends for the year, thus hopeful the wave will attract 45 percent revenues inflows in foreign currency.
“The group is completing two campsites at Great Zimbabwe and Caribbea Bay hotels with a combined capacity of 75 rooms accommodating a maximum of 150 people.
“Victoria Falls area will continue to benefit from the international traffic that is expected to grow by between 2-3 percent in line with global tourism trends.
“With regards to foreign currency generation, management is optimistic that the trend of at least 45 percent revenue in foreign currency will sustain supported by the growth in foreign arrivals,” African Sun said.
Meanwhile, the group recorded a 110 percent jump to US$10,14 million in profit for the year to December 2018 from $4,81 million posted in the prior comparable period.
Revenue grew 32 percent to us$68,50 million from us$51,82 million reported last year.
African Sun’s growth in revenue and profit was spurred by 7 percentage points increase in occupancy to 59 percent from 52 percent recorded in the same period in 2017.
Revenue growth was also aided by 17 percent growth in average daily rate (ADR) to US$109 from US$93.
International arrivals buoyed the group’s room nights sold to attain an inclusive 33 percent surge from all source markets.
“Occupancy growth was driven by strong performance from all source markets with room nights sold for domestic, international and regional increasing by 12 percent, 14 and 7 percent respectively,” said African Sun.
The group posted US$17,13 million EBIDTA, 78 percent above last year as a result of growth in revenue and cost management.
Net financing costs for the year amounted to US$0,66 million, a 37 percent decrease from US$1,05 million due to loan repayments and lower average borrowing rates.
The improvement in average daily rate (ADR) and growth in occupancy spurred a 33 percent growth in rooms’ revenue per available room (RevPAR) to US$64 from US $48 recorded in 2017.
The group earnings per share went up 111 percent to 1,18 cents from 0,56 cents.
