by SAVIOUS KWINIKA
JOHANNESBURG – TSOGO Sun Hotels revenues have more than doubled and earnings soared over the past year.
The Johannesburg Stock Exchange – listed firm reported its earnings rose to more than R2,7 billion (US$171,38 million) for the year ended March 31, 2002.
This is up from over R1,1 billion the previous year.
Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) rose to R590 million, up from 177 million.
Full year hotel occupancy at 30,6 percent was an increase from 12,2 percent in full year 2021.
Tsogo Sun nonetheless stated while encouraged by the recent upward trend in trading, it was still operating at occupancies significantly below the group’s long-term average.
“The group still faces several challenges, the most recent being the war in Ukraine, the flooding in KwaZulu-Natal (KZN) and the fifth COVID-19 wave,” it stated.
The group suffered minimal damage to its properties as a consequence of the flooding in KZN.
While room sales declined during that period, the long-term damage to infrastructure is of concern, Tsogo Sun stated.
“However, we do feel that we have passed the significant milestone of moving from a state of survival to a period of recovery.”
The hotel group noted having weathered multiple COVIDid-19 waves over the past two years, the fifth wave might delay recovery further.
“A consolation is that the impact of each wave seems to be less severe and the rebound in trading activity is quicker,” the company stated.
Tsogo Sun welcomed the return of key hospitality events, including the Mining Indaba held in Cape Town as well as the Africa Travel Indaba held in Durban, both in early May 2022.
The group used the Africa Travel Indaba to launch its rebranding to Southern Sun.
– CAJ News