Business Reporter
Listed hospitality company, African Sun has completed the refurbishment of 100 rooms at Hwange Safari Lodge at a cost US$4,2 million, under the initial phase of a three-stage facelift programme for the facility.
The completion of the first phase of the refurbishment exercise for Hwange Safari Lodge marks a significant stride in the company’s commitment to enhancing its hotel properties.
“In line with our vision to deliver value to guests, we remain focused on our strategy to upscale the state of our hotel properties through our ongoing refurbishment programmes. The first phase – US$4,2 million Hwange Safari Lodge (HSL) 100 rooms’ refurbishment is now complete,” African Sun said in a trading update for the third quarter ended September 30, 2023.
The hotelier said the attention has turned to the second phase of the exercise, focussing on revitalising public areas before commencing a similar programme at Elephant Hills Resort and Conference Centre in Victoria Falls.
Driven by its desire to provide world-class service to guests, African Sun continues to align its strategy with sustainable and responsible tourism, ensuring Hwange Safari Lodge remains a globally sought-after facility.
As Zimbabwe’s tourism rebounds, experts view the timing of the refurbishment as opportune, amid expectations for a rebound to 80–95 percent of pre-pandemic foreign visitor levels by the first quarter of 2024.
The company’s financials reflect a positive trend, following revenue of US$37 million in the first nine months of 2023, a 13 percent increase from the comparative period.
“This growth is attributed to a 21 percent rise in the average daily room rate and a 3 percent increase in occupancy, reaching 48 percent. The hotel segment is on track for a full return to pre-pandemic levels, matching 2019’s full-year occupancy by September 2023,” the company said.
African Sun underscored its commitment to financial stability, managing to maintain debt-free status.
The group’s liquidity remained robust, presenting opportunities for financial leveraging in the months ahead. The ability to finance ongoing refurbishment initiatives from internally generated cashflows further highlighted the strength of the business’s cash-generating capacity.
The groups said the hotel segment was well on its way to a full return to pre-pandemic levels.
“The hotel segment’s year-to-date occupancy for the nine months to September 30, 2023, at 48 percent, is equal to the occupancy achieved for the full year in 2019.”
“Turning to liquidity, the group remains debt-free, thus representing opportunities for financial leveraging in the months ahead.
“The cash-generating capacity of the business remains strong and has been able to finance the ongoing hotel refurbishment initiatives from internally generated cash flows,” read the trading update.
On the domestic front, African Sun said it welcomed all government efforts to stabilise and bring certainty to key elements of the macro-economic environment.
Notably, the company mentioned the extension of the use of the US dollar currency regime to 2030, which addresses significant currency uncertainty that had resulted in financial institutions significantly curtailing lending activities. – The Herald
