HomeBusiness DigestZimsun readies to run Ghana venture

Zimsun readies to run Ghana venture

ZIMSUN Leisure Group has set the second half of next year as the period to start managing Royal Airport Hotel in Ghana through its regional investment arm African Sun Limited (ASL).

vetica, sans-serif”>The 130-room hotel is currently under construction and is expected to be completed by the beginning of next year and to open its doors in the second half. Zimsun has the management contract to run the hotel.

Zimsun company secretary, Edwin Shangwa, in the company’s trading update for the six months to September, confirmed the company’s intention to continue with the venture.

“Construction at the Royal Airport Hotel in Ghana is in progress. The company is expected to commence management of the hotel in the second half of 2006,” Shangwa said.

Shangwa said the company had also concluded talks with Nigerian investors over its intention to move into the Nigerian hospitality sector by managing a 200-room hotel in Kano, which will be converted into an international brand hotel.

“The company signed a management contract for a 200-roomed hotel in Kano, Nigeria with plans to convert it to an international brand,” said Shangwa.

He however said the deal hinges on the availability of funding capital by the property owners to renovate the hotel.

“Refurbishment of the hotel to pave way for conversion to the international brand will start as soon as funding capital has been secured by the owner,” Shangwa said.

He said the company had implemented measures to mitigate against runaway inflation which has negatively impacted on its operational costs.

In the period under review, Zimsun’s net operating cost increased by 203% to $198,9 billion while its turnover increased by 229% to end the six months at $237,7 billion.

“Whilst the inflation rate has continued to soar, the group has implemented strategies to mitigate the impact of the runaway costs on the business,” said Shangwa.

He said the company had closed the period in a strong cash position a move which has benefited its on going refurbishment exercise.

“The company is in a strong cash position. The on going refurbishment programmes will improve the physical product and create a powerful platform to take advantage of positive changes in the future,” Shangwa said.

Zimsun it under taking a renovations at its Crowne Plaza Monomatapa Hotel which will see the creation of an executive floor for its prime customers.

In the period under review Zimsun closed with a cash balance of $29,3 billion compared to a negative position of $1,9 billion last year. – Staff Writer

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