Dawn Properties’ Revenue succumbs to COVID 19

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  • Revenue from hotel division was 54% down
  • Revenue from property consultancy was 10%  down
  • Overall occupancy of hotels in Q3 at 13%

Real estate holding, property consultancy and development company, Dawn Properties has recorded 54% and 10% declines in revenue from their hotel and property consultancy businesses respectively in the nine months ended 30 September 2020 as a result of the adverse impact of COVID 19.

In monetary terms revenue from the hotel business division came in at ZWL65,3 million while that from property consultancy was ZWL43,7 million.

Dawn Properties’ property and timeshare portfolio include Caribbea Bay Sun Hotel, Monomotapa Hotel, Elephant Hills Resort and Conference Centre, Great Zimbabwe Hotel, Holiday Inn Mutare Hotel and Hwange Safari Lodge.

In a statement accompanying these results, the company secretary, Markus De Klerk said this performance slump in respect to the hotels business division, was mainly due to a low-levels of occupancies which were a direct consequence of the lockdown and travel restrictions introduced by authorities to curb the spread of COVID 19.

The Group however witnessed an increase in hotel occupancies in the third quarter as more of their hotels opened between July and August after being shut down in March with only two remaining closed in the reporting period. (Hwange Safari Lodge and Elephant Hills Hotel)

Average occupancy for all the hotels for third quarter 2020 was however 13% compared with a 42% occupancy achieved during the same period last year.

In respect to the property consultancy side of things, COVID 19 was also the parent cause while the direct cause was subdued business experienced in the lockdown period which saw less and less companies seeking out rental space as employees were working from home.

“The lower than prior year performance was mainly due to subdued business during the lockdown period as well as the loss of a significant client, effective 31 March 2020.”

The Valuations and Advisory cluster contributed 59% of the total Property Consultancy revenue compared with 41% during the same period in prior year while the Property Management cluster contributed 32% of revenue compared with 49% in the prior year during the same period.

Going forward, the Group is banking on the reopening of the tourism sector in Zimbabwe to have a positive bearing on revenue and have already started reporting fruition in the quarter subsequent to the reporting period.

“The reopening of the tourism sector by the government of Zimbabwe has already started yielding positive results. As at 1 October 2020, all the African Sun run hotels are back in operation and occupancies are steadily increasing,” reported the company secretary.

Equity Axis News.

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