Harare – Hospitality Group, African Sun Limited’s revenue for the year ended December 31, 2018 was US$68.50 million which when compared to the US$51.82 the prior year is a 32 percent increase, spurred by a 7 percentage points (13%) increase in occupancy from 52 percent last year to 59 percent this year.
In a statement accompanying the Group’s financial results, Chairman Alex Makamure said revenue growth was also augmented by 17 percent growth in average daily rate (ADR) from US$93 recorded last year to US$109 as hotels continue to align domestic rates to the implied exchange rate between US$ and RTGS$.
He said strong performance from all their source markets contributed to the occupancy growth.
“Occupancy growth was driven by a strong performance from all our source markets with room nights sold for domestic, international and regional increasing by 12 percent, 14 percent and 7 percent respectively.
“The improvement in ADR and growth in occupancy spurred a 33 percent growth in rooms revenue per available room (RevPAR) from US$48 recorded last year to close at US$64. Total RevPAR also increased by 34 percent from US$86 last year to US$115 in 2018 responding to the 32 percent growth in revenue.”
Profit before income tax for the year from operations was at US$13.60 million, a 132 percent growth from US$5.86 million reported in the prior year driven by strong revenue performance and cost management. Profit for the year was 110 percent growth from last year to US$10.14 million.
In the period under review, the Group EBITDA of US$17.13 million, and Makamure said this was a 78 percent above last year in response to the growth in revenue and continued cost management.
Net financing costs for the year amounted US$0.66 million, a 37 percent decrease from US$1.05 million reported in the prior year due to loan repayments and lower average borrowing rates.
African Sun Limited, is a Zimbabwe based hospitality management company established in 1968. It operates in the hospitality and leisure industry through a number of hotels, resorts, casinos and timeshare operations throughout Zimbabwe.
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