Business - Companies & Markets - COVID-19 - Featured - Local - November 24, 2020

Hotelier African Sun says key performance indicators show a steady recovery in Q3

Falton Zveushe

AFRICAN Sun more than doubled the number of room nights sold from 8,144 in Q2 2020 to 20,329 in Q3 2020, with domestic demand being driven by government and non-Governmental Organizations. This is in spite of a drop in occupancy levels by 37% compared to the same period last year.

“The third-quarter results reflect an encouraging improvement from the second quarter amid the intractable impacts of Covid-19,” African Sun said in a trading update.

Inflation-adjusted revenues for Q3 were down 78% at ZWL260.88 million against the same period last year.

“While group performance for the quarter under review continued to suffer from Covid-19, key group performance indicators in Q3 show a steady recovery from Q2. Occupancy improved from 5% in Q2 to 14% in Q3, largely driven by the relaxation of lockdown restrictions, together with a number of promotional initiatives by the group to improve demand.”

On a year to date performance, occupancy was down 28%, compared to the prior year. Inflation-adjusted revenue for the period fell by 62% to ZWL965.3 million against the same period last year.

“The decrease is attributed to the Covid-19 pandemic and the related reduction in global travel and tourism, which required the complete suspension of all hotel operations at some point during the nine months ended 30 September 2020,” it said.

In the outlook, the company said, cost containment initiatives adopted in Q2 and Q3 are expected to drive cash preservation mode in Q4 and beyond.

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