African Sun Chief Executive Shingi Munyeza said the target was achievable given the fact the revenues at US$18 million were in line with same period last year but improved operation will see revenue increasing.
“Operating costs were down 4 percent, pushing EBITDA to 12 percent up from 7 percent last year. Profitability wise we are ahead of last year,” Munyeza said.
The company’s revenue for the year ending September 30 2012 grew by 12 percent to US$54,43 million.
The growth was spurred by a stronger performance particularly in the ADR, RevPAR grew by 18 percent to close the year under review at US$47 from US$40 last year.
Speaking at the AGM, Munyeza said RevPAR surged 8 percent driven by 19 percent growth in ADR, whilst rooms sold were down 8% partly due to the ongoing refurbishment.
RevPars increased at four hotels namely The Victoria Falls, Troutbeck, Hwange Safari Lodge and Caribbea Bay on the back of growing ADRs.
The rest of the hotels registered declining RevPars.
Hotels like Holiday Inn Harare, Crowne Plaza, Holiday Inn Bulawayo were affected by less rooms sold due to refurbishment.
The majority of international arrivals were from America 36,6 percent and Asia 34,6 percent. Arrivals from the international market have continued to increase while those from the domestic market are declining in line with the current economic environment.
“Growth in revenue would be driven by growth in ADRs,” said Munyeza adding that EBITDA will remain steady at 12 percent.
Commenting on strategic developments Munyeza said the refurbishment programme was now in its first phase following the approval of duty rebate on some of the imported items that had delayed progress.
He said Crown Plaza and Holiday Inn Harare will be done by end of June 2013 while Holiday Inn Bulawayo will be complete by end of March 2013.
The second phase for Victoria Fall Hotels has also commenced.
Munyeza also talked about the group’s debt position which the group is working on converting short term debt to long term debt.
Post published in: Business