- ASUN reported a 17% yoy drop in hotel occupancy to 39% in Q1 25
- Revenue decreased by 9% to $10.12 million
- In contrast, RTG maintained a stable occupancy rate of 48% despite ongoing renovations at key properties.
Harare-African Sun (ASUN) the largest hotelier group in Zimbabwe , faced significant challenges in the first quarter of 2025 with hotel occupancy rate plummeting by 17% to 39% , resulting in consequent 9% drop in revenue to US$10.12 million.
The decline contrasts with the performance of its competitor, RTG which maintained a stable 48% occupancy rate despite ongoing renovations at key properties.
The national average occupancy levels for 2024 came in at 44% significantly ahead of AfSun's performance.
In Q1 2024 AfSun was ahead of the national average at 47%.
While AfSan is divesting some of its non-profit-making operations, such as Great Zimbabwe and the sale of Monomotapa, which is in the pipeline, RTG is expanding its footprint in the hospitality segment.
RTG acquired Montclair Hotel and Casino as part of its expansion strategy.
With AfSan divesting and RTG investing, it is feasible for the two companies to post differing results, with one trending upwards and the other trending downwards
RTG has entered into a partnership with Grand Metropolitan Hotel, a Swiss-based company, while AfSun has terminated its partnership with TD Hotels & Leisure. In 2023, AfSun also experienced a lease dispute with First Capital, resulting in the relinquishment of the 248-room Victoria Falls Hotel, marking the company's first loss in years.
That was the genesis of AfSun's atrocities which has prompted the company to focus on a lean profiting segment, while considering diversification in the property sector.
As for Q1 2025, the downturn in AfSun performance was attributed to its strategic decision to sell non-core assets, including the Great Zimbabwe Hotel for US$4.2 million and attempted sales of the Monomotapa Hotel and Beitbridge Express Hotel.
These moves disrupted guest confidence, ultimately affecting the company's revenue.
Although AfSun aimed to streamline its portfolio and focus on core assets, the asset disposal strategy has temporarily weakened its market position.
In contrast, RTG's renovations were strategically managed to minimise disruptions, allowing its properties to capitalise on strong demand in Victoria Falls, a key tourism hub, and Harare's conferencing market.
This highlights a competitive edge over AfSun, which struggled to maintain occupancy rates amid its asset disposal strategy.
Globally, the reported 11.6% decline in international arrivals in March 2025, driven by economic slowdowns and geopolitical tensions, likely hit AfSunhard, given.
RTG, however, mitigated these pressures by leveraging robust domestic conferencing demand and regional tourism to Victoria Falls.
On the upside despite this, AfSun maintained its debt-free status.
However, tight liquidity and limited government spending in Zimbabwe could hinder broader economic growth, posing risks to AfSun rebound.
Looking ahead, AfSun anticipates a Q2 recovery, banking on domestic Meetings, Incentives, Conferences, and Events (MICE) business and improving foreign arrivals as Zimbabwe enters its peak tourism season.
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