African Sun Sees 9% Revenue Dip in Q1

Rutendo Mazhindu- Zim Now Reporter

Hotel group African Sun Limited reported a 9% decline in revenue for the first quarter of 2025, with reduced spending by the government and NGOs weighing down performance.

In a trading update released today, the company said revenue for the period ending March 31 fell to US$10.1 million, down from US$11.08 million recorded during the same period last year.

“The reduced spend from both governmental and non-governmental organisations contributed to the decline,” said company secretary and governance executive Venon T. Musimbe.

Occupancy also dropped to 39% from 47% last year, representing a 17% decline, while total revenue per available room fell by 15%. However, the average daily room rate increased by 6% to US$114.

International travellers accounted for 35% of total rooms sold, up from 24% in the previous year. Domestic customers remained the largest source of income, buoyed by meetings, conferences, and events held at both resort and city hotels.

Despite the fall in revenue, the group maintained a strong liquidity position, holding US$9.84 million in cash and remaining debt-free. This marks a 14% increase in cash holdings compared to the US$8.63 million recorded last year.

The group expects improved performance in the second quarter.

“We anticipate recovery supported by the domestic market and conference business. Foreign arrivals should also increase as we move into the peak season,” Musimbe said.

African Sun said it will continue focusing on strategic refurbishments to enhance guest experience and grow revenue, even as tight liquidity and reduced government spending remain key challenges.