African Sun to complete refurbishment of three pri...

African Sun to complete refurbishment of three prime assets this year

Audrey Galawu

Assistant Editor

African Sun is targeting to raise about US$8 million in 2024 to allow for the completion of the Victoria Falls Hotel and Hwange Safari Lodge refurbishments and to make a start on the Elephant Hills public areas.

The group has spent US$7.4 million over the past few years on refurbishments and an additional US$1 million on real estate development under the Dawn Property portfolio, all of which has been funded from internal resources.

The rebranding and refurbishing started back in 2021 which the group says will continue to dominate capital allocations over the next few years.

“To enhance the competitiveness and appeal of our properties with both local and international guests, a comprehensive strategy of refurbishing targeted hotels remained (and remains) a key imperative and priority. This strategy also involves a parallel process of rebranding and repositioning our properties to align with market trends and consumer expectations.

“During the year ended December 31, 2023, the group together with our partners, Meikles Hospitality (Private) Limited, preparatory work commenced for the final phase of the Victoria, Falls Hotel refurbishment programme, completed the remaining 46 rooms at Hwange Safari Lodge, and agreed final concepts for the public areas, finishing touches to Troutbeck public areas, and completion of the Great Zimbabwe Conference Centre,” African Sun chief executive officer, Lawrence Ward said.

The group has also invested US$1.5 million to enhance the existing IT systems in order to facilitate the flow of financial data, streamline procurement processes, improve guest service efficiency, facilitate scalability and generate guest profile databases.

“During the year, management embarked on a fundamental and long overdue digitalisation journey. Enhancements to our digital infrastructure and customer touchpoints, including our website and data analytics tools, will enhance guest experience and operational efficiencies, while reducing costs.

“These upgrades will empower management at all levels with real-time data, in order to streamline decision-making processes within our remote and decentralised operations.

“Our IT governance priorities in 2024 remain the completion of the above transformations, coupled with associated cybersecurity, data privacy frameworks and improving our compliance and control environment. Our aim is to create an IT environment that aligns with global hospitality best practice, trends and technology.”

Group revenue was US$54.73 million, up 30% against the comparable period. The improved performance was driven by former Average Daily Rates which closed 2023 at US$110, an increase of 39% against US$79 achieved during the comparable period, as a result of changes in customer mix.

Hotel occupancies increased to 52%, six percentage points above 2022. Revenue per Available Room for accommodation revenue increased by 58% to US$57, up from US$36 in the comparative period.

Earnings before interest, tax, depreciation, and amortisation was US$9.45 million, down from US$17.86 million in 2022, and the loss for the period was US$0.36 million.

With regards to liquidity, the group operated free of debt and had cash and cash equivalents of US$10.87 million as at December 31, 2023.

The group is currently in discussions with leading financial institutions to secure funding to complement its healthy cash balances for deployment in carrying out accelerated material hotel refurbishment projects.