HomeBusiness DigestAfrican Sun spends US$5,8m on facelifts

African Sun spends US$5,8m on facelifts

LISTED hotelier, African Sun Limited, has this financial year spend US$5,8 million in refurbishments and placements for its hotels and franchises, as the group aims to position itself as world-class hotel management group.

By Melody Chikono

The targeted establishments are Carebea Bay Resort, Mutare Holiday Inn, Victoria Falls Hotel and all its other hotels.

Exterior work at Carebea bay has already commenced with focus now in the interior while Mutare holiday inn refurbishments are expected to be completed in by July 2018.

In the full year to December 2017, property, plant and equipment increased 113% to US$1,97 million from US$0,97 in 2016 due to refurbishments and placements carried out last year.

Revenue increased by 19% spurred by growth in occupancy to 52% from 44% while operating profit for the year marginally i increased to US$4,82million.

Africa sun managing director Ed Shangwa recently told businessdigest that the upgrade was a continuous exercise and is ongoing.

“Our refurbishments are going to be done on the following centres, Carebea Bay, we are doing the interior, finishing Mutare Holiday Inn, Victoria Falls and hotel refurbishments franchised hotels to brand standards. We continuously upgrade and the exercise is ongoing. We are progressive and we have put aside a US$5,8 million budget ,” he said.

While focussing on the refurbishments, Shangwa said Afrisun had started responding to the economy and will look at areas with no representation in lien with expanding its footprint.

“In terms of footprint we feel there are some areas that we are not fully represented. We have started responding to the economy for example we are not there in in Midlands. It we would be a good place to be and we desire to be there. There is also Victoria Falls, the economy has responded well. All these are all areas of opportunity.

“We are still at discussion level for some reasons I’m not at liberty to disclose when and where,” he said.

Shangwa, however, said the group had no intention of going regional any time soon as it pulled out of its regional operations citing unsustainable operations.

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