African Sun Limited (ASL) is targeting a $59,8 million turnover for 2012 following a solid performance by the group in the first five months to February 2012.
Speaking at an annual general meeting on Friday, ASL chief executive officer, Shingi Munyeza, said the austerity measures that the company implemented had begun to bear fruit.
During the period under review, the company recorded an increase in turnover of 19% to $22 million slightly ahead of the target, while foreign arrivals were 25% up from last year.
Munyeza said revenue per available room was up 16% and earnings before interest, depreciation taxation and amortisation stood at 11% compared to 1% in the same period last year.
The refurbishment of Holiday Inn Harare, Holiday Inn Bulawayo and Crowne Plaza is progressing well and is set to be complete by June this year, he said.
We will embark on hotels in Victoria Falls thereafter, he said.
Munyeza said the companys borrowings were at $13,4 million and the bulk of them were short-term loans.
We are in the process of restructuring short-term loans to reduce the effective cost of borrowings exposure. We will be restructuring these debts in six months, he said.
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Munyeza, however, said challenges faced by Air Zimbabwe had negatively affected the companys operations.
We work with chartered flights between Harare and Victoria Falls. People are now going through Johannesburg, he said.
ASL is refurbishing its hotels and introducing the InterContinental Hotel Group (IHG) franchise. The company will rebrand Holiday Inn Mutare to African Sun Amber while Holiday Inn Beitbridge would be rebranded to Beitbridge Express Hotel.
The group said this was in line with its growth strategy where new brands would unlock shareholder value and increase profitability for the operations.
Sun Amber is described as a mid-range city brand targeted at the business traveller and conference delegates.
The group received a $10 million loan from Afrexim Bank in 2011.
