Shame Makoshori, Chief Business Reporter
INVESTMENT giant, TA Holdings, said last week it was close to concluding a US$6 million package with external financiers to bankroll the refurbishment of its flagship hotel, the Cresta Lodge in Harare.
Refurbishment of the lodge has been on the cards for some time but had been delayed due to lack of funds.
But the group’s chief financial officer, Bothwell Nyajeka, said last week the refurbishment of the three-star property had remained a top priority, adding pending regulatory approvals, a deal to bankroll the project could be sealed soon.
The Zimbabwe Stock Exchange-listed group, which has assets in hotels and insurance in six countries, controls 100 percent shareholding in hotel management firm, Cresta Hospitality Holdings, a 100 percent stake in Cresta Hospitality, 100 percent shareholding in Cresta Hotels and a 35 percent shareholding in Botswana headquartered Cresta Marakanelo, which was listed on the Botswana Stock Exchange in June.
“We want to make sure we raise capital to be able to refurbish our hotels,” Nyajeka told analysts during the presentation of TA’s results for the six months ended June 30 2010.
“We have gone far in looking for US$6 million to refurbish Cresta Lodge, subject to regulatory approvals,” the TA finance chief added.
Cresta Zimbabwe posted a US$74 000 loss during the review period, a significant improvement from the US$1 million loss the hotel chain, which is the third largest in Zimbabwe after African Sun and the Rainbow Tourism Group, suffered during the comparative period in 2009.
The improved results came as room occupancy rates in TA’s Zimbabwean operations shot up 17 percentage points during the review period to 47 percent from 30 percent during the first half of 2009.
Prospects for the industry have improved and boards in most hospitality companies are planning massive product facelifts as arrivals are anticipated to shoot in line with the improved political and economic environment in Zimbabwe since February last yearwhen major political parties formed a power-sharing administration.
Government projections last week indicated that arrivals during this year could hit three million.
The highest number of tourists reported in Zimbabwe was 2,5 million in 2007 and 1999.
Apart from the traditional European markets Zimbabwe has reported an influx of tourists from Brazil, Argentina, the Middle East, Russia, China and Mexico.
But hotel chains with operations in Zimbabwe’s big cities are likely to benefit from the expected high arrivals.
Recent trends have indicated that tourists’ interests have shifted significantly from visiting resorts to holidaying in big cities.
TA operates the four-star Jameson Hotel, Cresta Lodge and Cresta Oasis, which are all in Harare.
Group profits for the review period increased to US$170 000.This was a big improvement from the US$3,3 million loss TA reported during the same period last year. The group reported a US$0, 67 basic loss per share but this loss was an improvement from the US$2,12 basic loss per share suffered during the comparative period in 2009.
Show/Hide comments
Show/Hide comment form