Online Reporter
Nqobile Bhebhe Zimpapers Business Hub
Africa Sun Limited has announced that Elephant Hills Resort and Conference Centre, along with Holiday Inn Harare and Holiday Inn Bulawayo, have emerged as the Group’s top-performing hotels for the 2024 financial year.
Together, these establishments accounted for an impressive 54 percent of the Group’s total revenue, showcasing their pivotal role in the company’s success.
Despite a year marked by revenue growth and improved occupancy levels across the hospitality portfolio, the Group closed 2024 with a marginal loss.
This was primarily due to elevated operating costs and one-off, non-recurring expenditures. However, Africa Sun emphasised its continued financial strength, underpinned by a resilient balance sheet and robust liquidity and solvency positions.
“The Hotel’s top three performers for the 2024 financial year were Elephant Hills Resort and Conference Centre, Holiday Inn Harare and Holiday Inn Bulawayo. These contributed 54 percent to the Group’s total revenue for the year,” the Group Chief Executive Officer, Mr Lawrence Ward said in the annual 2024 report.
The Group reported a seven percent increase in annual occupancy levels, reaching 59 percent up from 55 percent in 2023, translating to nearly 15 854 additional room nights sold across its portfolio.
Additionally, the Average Daily Rate (ADR) rose by four percent, bolstered by stronger rates during peak periods and ongoing refurbishment efforts, particularly at the premium Victoria Falls Hotel.
The ADR at this flagship hotel increased from US$404 to US$414, a clear indication of market confidence and guest willingness to pay a premium for upgraded facilities.
“The ADR for the year was four percent higher than the prior year, reflecting the positive impacts of negotiated rate increases and rate-yielding opportunities during peak periods. This was also driven by the increase in the Victoria
Falls Hotel ADR from USD 404 to USD 414, a testimony to the market’s willingness to pay higher rates for refurbished rooms.”
Meanwhile, Africa Sun’s branded InterContinental Hotels Group (IHG) properties, Holiday Inn Harare, Holiday Inn Bulawayo, and Holiday Inn Mutare, maintained strong brand compliance.
All three passed IHG’s audits in 2024.
“The three branded InterContinental Hotels Group (IHG) hotels, namely, Holiday Inn Harare, Holiday Inn Bulawayo, and Holiday Inn Mutare continue to meet all the requirements of the IHG brand standards, having all passed compliance audits in 2024,” said Mr Ward.
As a further vote of confidence in the performance of its Harare and Bulawayo assets, Africa Sun announced a 20-year lease extension for both Holiday Inn Harare and Holiday Inn Bulawayo.
