“The year 2018 started on a high note with the new dispensation positively influencing the increase in foreign arrivals by 17 percent for the five months compared to same period last year,” said chief executive Edwin Shangwa in a trading update at the company’s annual general meeting.
He said during the period, revenue increased 30 percent to $20.97 million from $16.74 million largely driven by growth in occupancy levels.
“With occupancy growth of 53 percent and 8 percent growth in ADR from $89 to $97, revenue grew 30 percent and subsequently growth in total RevPar across all units which went up 31 percent to $90 from $68 last year same period comparable,” he said.
Shangwa said having experienced positive growth in the business matrix, the group has embarked on a product improvement journey with various projects currently underway.
He said refurbishments at Holiday Inn Mutare are progressing well and expected to be completed by 31 July 2018.
At Caribbea Bay Resort interior concepts and mock up rooms are in progress while the second phase of refurbishment at Victoria Falls Hotel is expected to commence in the last quarter of this year.
“Creation of additional conferencing facility at Hwange Safari Lodge is expected to be completed by Q4 of 2018 while the group will continue with upgrades and compliance to IHG Franchise hotels to comply with brand standards,” he said.
Shangwa said leisure and conferencing business are expected to drive occupancy in all hotels during the peak season which spans from June to November.
With Zimbabwe holding elections on July 30 this year, related business is already coming through and the group expects a positive impact during the third quarter, with full year performance expected to be above both budget and target. – The Source