- Occupancy Rate Up: Reached 55% in Q3, a 7-percentage point increase from Q3 2023
- Revenue Growth: Revenue surged 24% to US$18.1 million, with year-to-date revenue reaching US$43.7 million (up 18%)
- Diversified Growth: Food, beverage, and ancillary revenues rose 28%, while real estate segment contribution increased to 5% (from 2%), driven by successful stand sales
Harare- African Sun, the largest hotel group has reported occupancy rates exceeding 50% reaching 55%, a 7-percentage point increase from the same period last year.
This achievement played a crucial role in driving revenue to US$ 18.1 million, representing a 24% increase compared to Q3 2023.
Year-to-date revenue reached US$ 43.7 million, reflecting an 18% growth overall.
“The domestic market remains the cornerstone of African Sun's success, contributing 71% of room nights sold,” the hotelier said.
The share from international arrivals has risen to 29%, up from 26%, indicating a gradual recovery in global travel.
The firm average daily rate (ADR) has also contributed significantly, bolstered by improved product offerings in refurbished hotels and strong demand.
Additionally, food, beverage, and ancillary revenues surged by 28%, largely driven by increased uptake from conferences and events. This growth reflects the importance of Meetings, Incentives, Conferences, and Events (MICE) in generating supplementary revenue and enhancing overall profitability.
The real estate segment has also shown impressive growth, with its revenue contribution rising to 5% from 2% highlighting the successful sale of Marlborough Sunset Views stands.
Despite challenges in the hospitality sector, African Sun has maintained a robust liquidity position, with a cash and cash equivalents balance of US$ 11.5 million as of September 30, 2024.
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