Jun 23 2011
African Sun has begun the refurbishment of its city hotels in preparation for the re-launch of its hotels under the Holiday Inn franchise later in the year.
Crown Plaza Monomotapa will also undergo a facelift.
Speaking at an analysts’ briefing in Harare on Wednesday, African Sun chief executive officer Shingi Munyeza said the refurbishment exercise is capped at $10 million.
“Priority will be given to the relaunch requirements of the hotels operated under the Holiday Inn Franchise,” said Munyeza.
“We are hoping by October this year we should be done with the two main city hotels, Harare and Bulawayo, for the relaunch.”
The African Sun group recorded revenue increase of 6% to $27,74 million for the half-year ended 31 March 31 2011 from $26,06m buoyed by its Zimbabwe operations.
During the period under review occupancy levels increased to 45% from 40% , while revenue per available room and average daily rate recorded growth of 16% and 5% respectively.
The group recorded an earnings before interest, taxes, depreciation and amortisation (EBITDA) profit of $91 617 from an EBITDA loss of $28 571 over the same period last year.
Munyeza said the EBITDA position of the group was weighed down by losses in South Africa and Hotelserve operations.
The group revised downwards its full-year revenue forecast to September 2011 from the initial $64 million to $59,6 million.
“This revision is mainly attributable to the depressed performance of South African and Hotelserve operations, a delay in the opening of Holiday Inn Gaborone and the once-off restructuring costs in the second half, ” reads part of a statement accompanying its financial results.
Cost of sales increased by 8% over compared to the same period last year, ahead of the 6% growth in revenue, owing to the depressed performance in South Africa and high cost at hotel level.
The group anticipates adding 231 rooms in the next six months to December 2011.