African Sun Limited, a leading hospitality group, has expressed optimism about its future performance, buoyed by the encouraging recovery of international travel. The group’s first-quarter results, spanning January to March 2024, reveal a notable improvement in occupancy levels compared to the same period last year.
The United Nations World Tourism Organisation (UNWTO) has projected an increase in international travel this year, which is expected to have a positive impact on the tourism and hospitality sectors. African Sun Limited is confident that this trend will continue, driving improvements in its business. The group’s management cited the recovery of the international market as a key factor in their expected growth.
African Sun Limited’s revenue for the quarter stood at US$11.1 million, representing a 40% increase from the prior year. This growth was largely driven by a surge in demand for conferences, resulting in an 8-percentage-point increase in occupancy and a higher Average Daily Rate (ADR). The group’s efforts to enhance its product offerings and revenue-yielding initiatives also contributed to the improved performance.
The domestic market remained the primary source of business, accounting for 76% of total room nights sold. However, the international market is gradually recovering, contributing 24% of room nights, a 54% growth from the same period last year.
In terms of profitability, African Sun Limited recorded an EBITDA of US$0.26 million, a significant improvement from an EBITDA loss of US$0.41 million in the same period last year. The group’s loss before tax was US$1.27 million, a 32% improvement from the comparable period. This enhanced profitability is mainly attributable to growth in revenues.
African Sun Limited maintains a strong liquidity position, with a cash and cash equivalents balance of US$8.6 million at the end of the quarter. Notably, the group remains debt-free, providing a solid foundation for future growth. However, the group is exploring suitable debt funding opportunities in the local and regional markets to support its plans to refurbish and modernize its hotel product portfolio.
In a demonstration of its commitment to rewarding its shareholders, African Sun Limited declared a final dividend of US$350,000 for the 2023 financial year, following the end of the first quarter. This move reflects the group’s confidence in its future prospects and its desire to share its success with its stakeholders.
I am an enthusiastic travel consultant who is passionate about travel and tourism. I love to convey the wonder and "whoa's!" of places I go, and I am always eager to share relevant tips to people like me, mainly etiquette and emotions.
African Sun Optimistic as International Travel Recovers
African Sun Limited, a leading hospitality group, has expressed optimism about its future performance, buoyed by the encouraging recovery of international travel. The group’s first-quarter results, spanning January to March 2024, reveal a notable improvement in occupancy levels compared to the same period last year.
The United Nations World Tourism Organisation (UNWTO) has projected an increase in international travel this year, which is expected to have a positive impact on the tourism and hospitality sectors. African Sun Limited is confident that this trend will continue, driving improvements in its business. The group’s management cited the recovery of the international market as a key factor in their expected growth.
African Sun Limited’s revenue for the quarter stood at US$11.1 million, representing a 40% increase from the prior year. This growth was largely driven by a surge in demand for conferences, resulting in an 8-percentage-point increase in occupancy and a higher Average Daily Rate (ADR). The group’s efforts to enhance its product offerings and revenue-yielding initiatives also contributed to the improved performance.
The domestic market remained the primary source of business, accounting for 76% of total room nights sold. However, the international market is gradually recovering, contributing 24% of room nights, a 54% growth from the same period last year.
In terms of profitability, African Sun Limited recorded an EBITDA of US$0.26 million, a significant improvement from an EBITDA loss of US$0.41 million in the same period last year. The group’s loss before tax was US$1.27 million, a 32% improvement from the comparable period. This enhanced profitability is mainly attributable to growth in revenues.
African Sun Limited maintains a strong liquidity position, with a cash and cash equivalents balance of US$8.6 million at the end of the quarter. Notably, the group remains debt-free, providing a solid foundation for future growth. However, the group is exploring suitable debt funding opportunities in the local and regional markets to support its plans to refurbish and modernize its hotel product portfolio.
In a demonstration of its commitment to rewarding its shareholders, African Sun Limited declared a final dividend of US$350,000 for the 2023 financial year, following the end of the first quarter. This move reflects the group’s confidence in its future prospects and its desire to share its success with its stakeholders.
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Updated on May 27, 2024 by TravelNinja
Enthusiastic Travel Consultant
I am an enthusiastic travel consultant who is passionate about travel and tourism. I love to convey the wonder and "whoa's!" of places I go, and I am always eager to share relevant tips to people like me, mainly etiquette and emotions.Comments
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