Van Hoogstraten refuses to endorse RTG loan restructuring

The group’s occupancy rate grew to 48 percent from 38 percent recorded same period in 2015, while market share increased to 32 percent compared to 27 percent recorded during prior year.

“While Zimbabwe hotels registered strong performance, Rainbow Hotel Mozambique (RHM)’s revenues were down by 46 percent in comparison to same period in 2015.The hotel has continuously recorded declining revenues year on year and this subdued performance is attributable to the current political instability in Mozambique,” he said.

In the period under review the group’s costs declined by $1.3 million while year to date total operating costs reduced by 17 percent compared to prior year.

Meanwhile, Madziwanyika said during the past three years the company has reduced the working capital gap – the difference between current assets and current liabilities — from a negative $12.4 million to a negative $9.2 million.

“Operationally the business has managed to generate an average EBITDA of $4 million which has been channelled towards refurbishment of the hotels and loan servicing. However, the financial position remains burdened by the balance sheet structure. We expect to have lasting solution during the course of the year,” he said.

RTG said it was now focusing on creating a sustainable capital structure which will be key to its turnaround plans.

“We will continue to monitor the macro-economic environment and apply appropriate strategies that create value for the company’s stakeholders,” said Madziwanyika.- The Source

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