African Sun tables aggressive refurbishment initiatives

Leading hospitality group African Sun Limited (ASL) has announced an ambitious refurbishment program aimed at boosting its competitive edge on the global tourism stage, despite economic headwinds and operational challenges.

Presenting the group's financial performance for the year ended December 31, 2024, ASL board chairperson Lloyd Mhishi confirmed that the hospitality giant will roll out an aggressive series of renovations across its flagship properties in 2025.

"The group achieved notable progress in its refurbishment initiatives during the year, which primarily included the completion of public area renovations at Hwange Safari Lodge," Mhishi said. "Plans for 2025 include commencing the refurbishments of Holiday Inn Harare, Elephant Hills Resort, Troutbeck Timeshare Lodges, and the second phase of renovations at The Victoria Falls Hotel."

However, Mhishi noted that the renovation projects will temporarily reduce available room inventory in the coming year. He emphasised that the short-term setback is a strategic investment to enhance guest experiences and capture greater market share both locally and internationally.

Despite economic turbulence - particularly the 43% devaluation of the Zimbabwe Gold (ZWG) currency which triggered exchange rate losses - ASL reported encouraging growth across all its segments. Revenue from continuing operations climbed to US$53.98 million, a 15% increase from the previous year. This growth was supported by higher occupancy rates and a 3% increase in the Average Daily Rate, which rose to US$119 from US$115 in 2023.

The company's Real Estate division contributed US$3.02 million in revenue, primarily through residential stand sales, reinforcing diversification efforts.

Discontinued operations - which include the Great Zimbabwe Hotel, Monomotapa Hotel, and Sun Leisure Tours - generated an additional US$8.24 million. Combined, the Group's total revenue reached US$62.22 million, reflecting a 14% year-on-year increase.

"As we move into 2025, we remain optimistic about the recovery of the tourism sector, building on the progress made in the local market and the ongoing rebound of international travel," said Mhishi. He cited the United Nations Tourism Organization's forecast of a 5% global rise in tourist arrivals, driven by full recovery in the Asia-Pacific region and strong growth in other markets.

The Group's strategic renovations and optimistic outlook come at a time when Zimbabwe's tourism industry is positioning itself to regain its footing after years of pandemic-related setbacks and currency volatility.