• Mon. Apr 15th, 2024

Elephant Hills Resort and Conference Centre refurb to commence soon: Afsun

ByETimes

Nov 20, 2023

By ETimes

African Sun, one of the country’s leading hospitality companies, has announced that it will be shifting its focus to the second phase of refurbishing the iconic Hwange Safari Lodge.

With the second phase of refurbishment set to commence, African Sun Limited is taking a significant step towards solidifying its reputation as a leading hospitality operator in the country.

The company’s commitment to sustainable and responsible tourism, combined with its passion for delivering exceptional experiences, ensures that Hwange Safari Lodge will continue to be a sought-after destination for safari enthusiasts, nature lovers, and adventure seekers alike.

“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 on-going refurbishment programmes. The first phase – US$4.2 million Hwange Safari Lodge (HSL) 100 rooms’ refurbishment is now complete.

“We are now shifting our focus to the second phase of the HSL refurbishment, which seeks to deliver spruced-up public areas before we commence the eagerly anticipated Elephant Hills Resort and Conference Centre refurbishment,” the company said in a trading update for the third quarter ended 30 September 2023.

As Zimbabwe’s domestic and international tourism continues to rebound, experts say the timing of this refurbishment is impeccable.

According to UNWTO World Tourism Barometer scenarios, foreign visitor visits are expected to return to 80–95% of pre-pandemic levels by 2023.

“In line with these forecasts, we expect the recovery of international arrivals from our traditional source markets to continue as well,” African Sun stated.

“On the domestic front, we welcome all government efforts to stabilize and bring certainty to key elements of the macro-economic environment. Notably, the extension of the use of the USD to 2030 addresses significant currency uncertainty which had resulted in financial institutions significantly curtailing lending activities.”

As for the financials, the group generated revenue of US$37 million during the first 9 months of 2023, which is 13% more than during the comparative period.

“The improving year-to-date revenue performance is driven by an average daily room rate growth of 21%, and a 3 percentage points increase in occupancy from 45% in 2022 to close 2023 at 48%,” it said.

The group noted that the hotel segment is 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 30 September 2023, at 48% is equal to the occupancy achieved for the full year in 2019.”

African Sun is still debt-free.

“Turning to liquidity, the group remains debt-free, thus representing opportunities for financial leveraging opportunities in the months ahead.

“The cash generating capacity of the business remains strong and has been able to finance the on-going hotel refurbishment initiatives from internally generated cashflows,” reads the trading update-HARARE

By ETimes

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